The Central Government's notification and rules for BH series registration, along with the obligation of the State Government to implement them under Article 256 of the Constitution of India, formed the central legal principles in the judgment.

JUDGMENT/ORDER

M.G.S.KAMAL, J. - Ministry of Road Transport and Highways (hereinafter referred to as 'MORTH'), Government of India, by its Notification bearing No.GSR 594(E) dtd. 26/8/2021 as per Annexure-D introduced a new registration mark for new motor vehicles called Bharath Series (hereinafter referred to as "BH Series"), process of which would not require assignment of new registration mark, if the owner of the vehicle moves from one State to another. The said facility was made available on voluntary basis to defence personnel, employees of Central Government/State Government, Central/State Government Public Sector undertakings, private sector companies/organisation, which are having their offices in four or more States/Union Territories.

2. In furtherance to the said notification, the appellant No.2- Commissioner of Transport, Road Safety, Bengaluru, had issued a communication bearing No.TC/Regn.-1-PR-412/2021-22 dtd. 20/12/2021, as per Annexure-G to register new non transport vehicles of persons in the first phase, excluding private sector employees, under BH series registration.

3. Writ petitioners/respondent No.1 in both the appeals aggrieved by the aforesaid communication dtd. 20/12/2021 issued by appellant No.2 excluding registration of new non-transport vehicles of private sector employees under BH series, filed the present writ petitions.

4. Subsequent to filing of the writ petitions, by another communication dtd. 11/5/2022 (as per Annexure-R-1 to the Statement of objections filed by the appellant No.1 -State) State Government has directed the appellant No.2 -Commissioner to consider registration under BH series only the motor vehicles owned by officer/staff of All India Service, Central Government employees and bank officers, leaving out private sector employees.

5. Learned Single Judge by impugned common order dtd. 16/12/2022 allowed the writ petitions quashing the communication dtd. 20/12/2021 issued by the appellant No.2 and further directed appellant No.2 to register the motor vehicles of the writ petitioners forthwith as per the notification dtd. 26/8/2021 under BH series and further directed the State Government to implement the Central Motor Vehicles (20th Amendment) Rules 2021. Being aggrieved by the said order appellants-State authorities are before this Court in these writ appeals.

6. Sri.S.Mahendra, learned Additional Government Advocate reiterating the grounds urged in the memorandum of appeals submitted that:

(i) State Government is empowered to collect taxes from the citizens owning vehicles and that notification dtd. 26/8/2021 issued by MORTH is coming in the way of appellants exercising their powers in collecting taxes as and when fell due;

(ii) That the levy and collection of taxes of motor vehicles is exclusively a State subject as per Entry 57 List II (State List) of VII Schedule of Constitution of India and that the said taxes are one of the modes of revenue generation for the State and any short fall would effect financial status of the State;

(iii) That MORTH has only issued a notification and has not enacted any law in this regard to implement the same in accordance with the Motor Vehicles Act, the Karnataka Motor Vehicles Taxes Act and Rules. As such the State is well within the jurisdiction to exclude private employees from BH series registration;

(iv) That the exclusion of private employees from registering motor vehicles under BH series is based on comparative collection of taxes payable by the citizens for vehicles under BH series and if all vehicles owned by employees are registered under BH series there is every likelihood of decrease in collection of taxes;

(v) That private employees may not be permanent employees of the company where they are working and they can be employees on contract basis or can be hired for specific project or can be employees whose services are utilized temporarily to ensure the business continuity;

(vi) That infrastructure is yet to be developed to collect