Vattikuti Abbaiah Vs State of Telangana (Telangana High Court)
Telangana High Court held that demand for life tax on used motor vehicle imposed under Telangana State Motor Vehicle Taxation Act, 1963 is valid even when tax was paid on the subject vehicle in another state. Accordingly, writ petition dismissed.
Facts- Petitioner has purchased a Black BMW 730LD, 2013 model for Rs. 9,75,000/- through Kunj Motors in Delhi. Original cost of the vehicle, as per the invoice dated 26-11-2013, was Rs. 92,50,000/-. According to him, one-time tax (OTT) amounting to Rs. 12,48,687/- had already been paid for the vehicle at the time of its purchase in Delhi, valid for the lifetime of the vehicle as per the applicable rules.
Upon bringing the vehicle to Hyderabad in September 2022, he is stated to have approached the 2nd respondent with all mandatory documents to effect transfer of ownership. Despite his willingness to pay the requisite charges, the 2nd respondent demanded Rs. 14,91,150/-. This amount was calculated as 15.5% road tax on the original invoice price of Rs. 92,50,000/-, along with 4% transfer charges.
It is contended, respondent’s demand for road tax on the original invoice price is arbitrary, illegal, and without authority, as the vehicle is already 10-year-old and has significantly depreciated in value.
