Prakash Nayak Vs State of Odisha & Ors. (Orissa High Court)
The Orissa High Court heard a writ petition filed by the owner of vehicle bearing Registration No. OD-18N-2732 seeking a writ of mandamus directing the authorities to unblock the vehicle in the State Government’s Vahan Portal, display the correct tax payable, and accept payment of such tax through the online mode.
The Petitioner submitted that he had been issued an All India Tourist Vehicle authorisation certificate for the period from 16.07.2025 to 15.07.2026. According to the Petitioner, while processing his application, the competent authority erroneously assessed post motor vehicle tax/additional tax even though the tax had already been deposited on 31.03.2026 and the payment was reflected in the Vahan Portal. The Petitioner further alleged that the R.T.O., Rayagada demanded penalty and balance tax over the telephone in January 2026 without issuing any show cause notice, which was stated to be in violation of the principles of natural justice.
The Petitioner also submitted that he had filed a representation before the R.T.O., Rayagada on 31.01.2026 explaining that the non-payment of tax was not intentional and resulted from a mistake by the R.T.O., Jharsuguda. Despite this, the vehicle was blocked in the Vahan Portal. Subsequently, on 11.04.2026, eleven challans were issued alleging use of the vehicle without Registration Certificate and Fitness Certificate, leading the Petitioner to approach the High Court.
The Transport Department submitted that the tax dues reflected in the Vahan Portal had already been paid by the Petitioner and, therefore, there was no dispute regarding payment of tax. However, it contended that a penalty had been imposed and a show cause notice had been issued. According to the Department, the Petitioner had not submitted a reply to the show cause notice, preventing the statutory authority from deciding the Petitioner’s claim regarding the penalty. On this basis, it sought dismissal of the writ petition.
After considering the submissions of both sides, examining the documents on record, and keeping in view the limited nature of the grievance, the High Court disposed of the writ petition at the admission stage. The Court permitted the Petitioner to file a reply to the show cause notice within two weeks along with a copy of the Court’s order. It directed Opposite Party No.2, R.T.O., Rayagada, to consider the Petitioner’s reply and pass consequential orders with due intimation to the Petitioner.
The Court further directed Opposite Party No.2 to unblock the Petitioner’s vehicle in the State Government’s Vahan Portal, if it had not already been unblocked. The Court clarified that such unblocking would remain subject to the final outcome of the show cause proceedings concerning the penalty demand.
The Court also granted liberty to the Petitioner to file objections to the several challans issued while the vehicle remained blocked in the Vahan Portal. It directed that, if such objections were filed, Opposite Party No.2 should consider and decide them strictly in accordance with the applicable provisions of law and rules.
Accordingly, the writ application was disposed of with the above observations and directions.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. This matter is taken up through Hybrid mode.
2. Heard learned counsel for the Petitioner as well as learned standing counsel for the Transport Department-Opposite Parties. Perused the writ application as well as the documents annexed thereto.
3. By filing the present writ application, the Petitioner who is the owner of the vehicle bearing Registration No. OD-18N-2732 has approached this Court with a prayer to issue a writ of mandamus directing the parties to unblock the above noted vehicle in the Vahan Portal of the state, further direct to the Opposite Party No.4 to display the accurate tax which is due and payable by the Petitioner in the Vahan Portal and, to accept such tax dues through online mode. Learned counsel for the Petitioner, at the outset, contended that initially the vehicle of the Petitioner, who was issued with a All India Tourist Vehicle authorisation certificate for the period of 16.07.2025 to 15.07.2026. It was further submitted that while processing the Petitioner’s application, the competent authority erroneously assessed post motor vehicle tax/additional tax against the vehicle, despite the fact that the Petitioner had already deposited the said tax on 31.03.2026, which was duly reflected in the Vahan Portal of the State Government. While this was the position, the R.T.O., Rayagada in January, 2026 demanded penalty and balance tax in respect of Petitioner’s vehicle over phone. Learned counsel for the Petitioner, at this juncture alleged that such demand was made without a relevant show cause notice being issued to the Petitioner. As such the learned counsel for the Petitioner alleged violation of the principles of natural justice.
4. Learned counsel for the Petitioner, at this juncture, further submitted that on 31.01.2026, the Petitioner has submitted a representation before the R.T.O., Rayagada indicating therein that the non-payment of the tax is not intentional rather the same is due to a mistake on the part of the R.T.O., Jharsuguda for which the Petitioner cannot be held responsible. While this was the position, the R.T.O., Rayagada blocked the vehicle of the Petitioner which was earlier reflected in the Vahan Portal of the State Government. While this was the position, on 11.04.2026, eleven challans were issued in respect of the vehicle of the Petitioner for using the vehicle without R.C. and Fitness. Being aggrieved by such conduct of the Opposite Parties, the Petitioner has approached this Court by filing the present writ application.
5. Mr. Behera, learned standing counsel for the Transport Department on the other hand contended that the tax dues as was indicated in the Vahan Portal has already been deposited by the present Petitioner. Therefore, there exists no dispute with regard to such payment of tax. He further contended that some penalty has been imposed on the Petitioner and he has been issued with a show cause notice. It was also alleged that the Petitioner has not submitted his reply to such show cause notice. As a result of which the statutory authority is not in a position to decide the claim of the present Petitioner with regard to the penalty imposed upon him. In such view of the matter, learned standing counsel for the Transport Department contended that the writ application, being devoid of merit, is liable to be dismissed.
6. Having regard to the submissions made by the learned counsels appearing for both sides, on a careful examination of the background facts as well as the documents on record, further keeping in view the limited nature of the grievance involved in the present writ application, this Court deems it proper to dispose of the present writ application at the stage of admission by permitting the Petitioner to file his reply to the show cause within two weeks from today along with a copy of today’s order. In such eventuality, the Opposite Party No.2-R.T.O., Rayagada shall consider such reply of the Petitioner and pass necessary consequential orders thereon with due intimation to the Petitioner. Further, keeping in view the subsequent development in this case, this Court directs the Opposite Party No.2 to unblock the vehicle of the Petitioner in the Vahan Portal of the State Government, if the same has not been done in the meantime. However, such unblocking shall be subject to the final outcome of the show cause notice issued to the Petitioner by the competent authority making demand with regard to the penalty. It is open to the Petitioner to file his objection to the several challans issued by the Opposite Party No.2, while the vehicle of the Petitioner was blocked in the Vahan Portal of the State Government, and in the event any such objection is filed, it shall be addressed by the Opposite Party No.2 strictly in accordance with the provisions of law and the applicable rules.
7. With the aforesaid observations and directions, the writ application stands disposed of.
