Allowed

M/s Arcesium India Pvt. Ltd. v. State of Telangana

Telangana HC1 Nov 2019WP/23944/2019

Case brief

AI extract

What is this about?

Writ petition challenging demand for additional life tax on a Mercedes Benz car. Court allowed the petition, directing registration without extra tax, allowing tax paid on the invoice as per the Motor Vehicles Act.

What did the court decide?

Respondents directed to register the car with temporary registration number without demanding additional life tax, provided tax paid on invoice is as per Motor Vehicles Act.

M/s Arcesium India Pvt. Ltd. Vs State of Telangana — Service and Employment | Telangana HC (2019)

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THE HONOURABLE SRI JUSTICE P.NAVEEN RAO

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W.P.No. 23944 of 2019

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Date: 1.11.2019

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Between :

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M/s Arcesium India Pvt. Ltd., rep. by its Director Prashant Naidu

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Petitioner

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And

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State of Telangana, rep. by its Principal Secretary, Transport Department, Secretariat Building, Hyderabad & others.

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This court made the following :

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THE HONOURABLE SRI JUSTICE P.NAVEEN RAO

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W.P.No. 23944 of 2019

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ORDER :

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Heard learned counsel for the petitioner and learned Government Pleader for Transport.

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Petitioner claims to have purchased Mercedes Benz Car (Chasis No.WDD 1173456L0122310219 – Engine No. 27092031813526) from Raam Autobahn India Pvt. Ltd., Hyderabad for an invoice price of Rs.27,00,000/-. At the time of purchase, petitioner claims to have paid life tax of Rs.3,78,000/- and petitioner was given temporary registration number as TS 09 CPTR 9940. When the petitioner approached the respondents to register his vehicle permanently, petitioner was asked to deposit an additional amount towards life tax holding that petitioner paid less amount than the tax payable on ex Showroom price of the vehicle. According to petitioner, life tax is payable on the invoice but not on the ex Showroom price and therefore petitioner is not required to pay additional tax as demanded.

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In support of the claim that petitioner is not required to pay additional amount demanded by the respondents, learned counsel for petitioner placed reliance on the decision in W.P.No.5286 of 2018 which was upheld by the Division Bench in W.A.No.805 of 2018.

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Learned Single Judge of this Court held that the State cannot be allowed to levy life tax on the ex-showroom price shown in the price list, when it is not the actual cost of the vehicle and the life tax has to be levied on the actual cost of the vehicle as paid by the purchaser of the vehicle which can be reflected from the invoice.

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This view of learned Single Judge was upheld by the Division Bench of this Court.

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Learned Government Pleader does not dispute the fact that the issue is covered by the decision referred to above.

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Following the earlier decision in W.P.No.5286 of 2018 dated 02.05.2018 this Writ Petition is also allowed directing the respondents to register Mercedes Benz Car (Chasis No.WDD 1173456L0122310219 – Engine No. 27092031813526) purchased from Raam Autobahn India Pvt. Ltd., Hyderabad with temporary registration number as TS 09 CPTR 9940, without demanding additional life tax, if the life tax already paid based on the invoice dated 4.10.2019 is as per the provisions of the Motor Vehicles Act and the vehicle is fulfilling all other parameters for registration. Pending miscellaneous petitions, if any, shall stand closed.

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__________________ P.NAVEEN RAO,J

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Date: 1.11.2019 DA

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THE HONOURABLE SRI JUSTICE P.NAVEEN RAO

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W.P.No. 23944 of 2019
1.11.2019

M/s Arcesium India Pvt. Ltd. v. State of Telangana

Case brief

What is this about?

What did the court decide?

M/s Arcesium India Pvt. Ltd. v. State of Telangana

Case brief

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What the court decided

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