Bhavesh Kumar Jain v. the State Transport Authority, Odisha

Orissa HC1 Jul 2026WP(C)/10207/2026

Case brief

AI extract

What is this about?

Natural justice violation vitiating motor vehicle tax demand; quashing of tax recovery certificate TRC No802/2025 dated 31.12.2025; remand to RTO Koraput for reassessment after hearing; vehicle Regd. No. OD 10F 4277; alleged expired RC from 09.08.2018; demand of Rs.4,30,500/- for 01.07.2022 to 31.12.2025; Bhavesh Kumar Jain v. The State Transport Authority, Odisha; Orissa High Court, W.P(C) No. 10207 of 2026; Chittaranjan Dash, J.; order dated 01.07.2026.

What did the court decide?

Quashing of the recovery certificate/demand at Annexure-2 and remand to RTO, Koraput for fresh consideration of the tax liability after affording the petitioner an opportunity of hearing; petitioner to appear before the RTO within 15 days with certified copy of the order. ¶¶24

Bhavesh Kumar Jain Vs the State Transport Authority, Odisha — Orissa HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the petitioner is liable to pay MV Tax/Additional Tax/Penalty of Rs.4,30,500/- for the period 01.07.2022 to 31.12.2025 on vehicle OD 10F 4277 when, according to the petitioner, the vehicle was not used or kept for use and its RC had expired from 09.08.2018. +1 more

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Ratio / Principle

The petitioner was not afforded an opportunity of being heard to explain the reasons for denying payment; accordingly the demand initiated under Annexure-2 was quashed and the liability was left to be considered afresh by the authority.

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Key takeaways

RTO, Koraput directed to examine the matter after giving the petitioner an opportunity of being heard and to pass appropriate order in accordance with law; the petitioner is to appear before the RTO within 15 days along with the certified copy of the order.ratio¶¶23
The Court expressly refrained from expressing any opinion on the merit of the tax demand.obiter¶¶23

Detailed headnote1 paragraphs

Motor Vehicles Tax – Recovery certificate (TRC No802/2025 dated 31.12.2025) issued by the Tax Recovery Officer-cum-RTO, Koraput demanding Rs.4,30,500/- towards MV Tax/Additional Tax/Penalty for 01.07.2022 to 31.12.2025 on vehicle Regd. No. OD 10F 4277 – Petitioner's contention that the vehicle, registered on 07.07.2008, had outlived its utility and its RC had expired from 09.08.2018 – Held: the petitioner was not afforded an opportunity of being heard to explain the reason for denying payment; demand under Annexure-2 quashed and RTO, Koraput directed to examine the matter upon hearing the petitioner and pass appropriate order in accordance with law; petitioner to appear before the RTO within 15 days with certified copy of the order – Writ petition disposed of; no opinion expressed on the merit of the demand.

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IN THE HIGH COURT OF ORISSA AT CUTTACK

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W.P(C) No. 10207 of 2026

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Bhavesh Kumar Jain

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…. Petitioner

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Mr. M. Padhy, Advocate

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-versus-

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…. The State Transport Authority, Opp. Parties Odisha & another

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Mr. S.B. Panda, AGA

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CORAM:

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THE HON’BLE MR. JUSTICE CHITTARANJAN DASH

ORDER

Order No.

01.07.2026

Heard learned counsel for the Parties.

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By means of this application, the Petitioner seeks the following relief:-

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“Quash the Certificate for recovery of arrear vide TRC No802/2025 dated 31.12.2025 in the Vehicle No- OD 10 F 4277 from 01.07.2022 to 31.12.2025 of Rs-430500/- issued by the Tax Recovery Officer- Cum -RTO, Koraput as at Annexure -2.

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(ii) Declare/pass order that the Petitioner is not liable for payment of any tax for the period from 01.07.2022 to 31.12.2025 as the vehicle was not used or kept for use as the

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Vehicle RC had expired from 09.08.2018.

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(iii) Direct the Opp. Party No-2 to reconsider the matter and reassess the tax liability of the petitioner vehicle No OD10F4277.”

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In course of the hearing in the application, the learned counsel for the Petitioner drew the attention of this Court to the fact that the vehicle in question bearing Regd. No. OD 10F 4277 got its registration on 07.07.2008 and has completed 17 years 08

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months and 15 days. The learned counsel for the Petitioner submits that the vehicle has out lived its utility in the meanwhile and as such, the demand made by the Opposite Party No.2 vide Annexure-2 is not in accordance with law and requires to be quashed.

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Perusal of Annexure-2 reveals that a sum of Rs.4, 30,500/- has been demanded towards MV Tax/ Additional Tax/ Penalty for the period from 01.07.2022 to 31.12.2025. The vehicle in question is in good carrier. Considering the above facts, the Petitioner having not being afforded an opportunity of being heard to explain the reason of denying the payment, the liability has to be considered by the authority, while quashing the demand as initiated under Annexure-2, it is directed that the RTO, Koraput shall examine the aforesaid aspect upon giving an opportunity of being heard to the Petitioner and to pass appropriate order in accordance with law. The Petitioner is directed to be present before the RTO, Koraput within 15 days along with the certified copy of this order to enable the RTO to proceed further in the matter. Needless to mention that we do not express any opinion on the merit of this demand.

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5. The Writ Petition is accordingly disposed of.

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Signature Not Verified

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Digitally Signed Signed by: BIJAY KETAN SAHOO Bijay Reason: Authentication Location: HIGH COURT OF ORI SSA Date: 02-Jul-2026 10:21:28

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Bhavesh Kumar Jain v. the State Transport Authority, Odisha

Case brief

What is this about?

What did the court decide?

Bhavesh Kumar Jain v. the State Transport Authority, Odisha

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Procedural history

Parties & counsel

Coram

Case details

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