A reciprocating state cannot demand additional motor vehicle tax for a period during which it failed to provide the mandatory counter-signature on an inter-state permit, as the liability to pay tax is legally tied to the concurrent right to operate the vehicle within that state.

JUDGMENT :

Rai Chattopadhyay, J.

1. The writ petitioner who is an inter State stage carriage permit owner and plies her vehicle in between the States of Orissa and West Bengal. Orissa is her permit issuing State and West Bengal is the reciprocating State. She has challenged in the instant writ petition, a letter issued by the Regional Transport Authority & Ex-Officio Assistant Director, STA, West Bengal, dated 25th November, 2024, addressed to the Taxing Officer with copy thereof being forwarded to the writ petitioner.

2. The said impugned letter was issued on the subject “Payment of Additional Tax and M.V. Tax against stage carriage permanent Permit No. 59-R/2021 in respect of vehicle No. OD05AD/0629 (Model -2017)”.

3. The sender writes that with respect to the permit of the writ petitioner as mentioned above, additional tax and motor vehicle tax are to be collected for the period from (i) 3rd June, 2021 to 2nd June 2026 (quarterly/yearly); from (ii)13th July, 2019 to 30th September, 2020; and from (iii) 3rd June 2021 till the date of the said letter. The writ petitioner is aggrieved about such direction of the respondent Authority in the said impugned letter dated 25^th September 2024, hence challenges the same.

4. The petitioner’s grievance is that the demand by the respondent Authority as above, amounts to be gross arbitrariness and stands against the settled legal position in this regard. The petitioner has enumerated the following factual background of the case in the writ petition:

5. The permit of the petitioner was renewed by the permit issuing Authority, with effect from 3rd June 2021, to be valid till 2nd June 2026. Consequent thereupon the State Transport Authority Orissa writes to the Secretary, State Transport Authority West Bengal, vide the letter dated 16th September, 2021, to countersign the renewed permit being No. 59-R-2021.

6. Since thereafter, allegedly despite several reminders having been sent by the petitioner herself to the said counter signing Authority, no response has yet come from its end, by way of counter signing the permit so renewed in favour of the writ petitioner by the permit issuing State. Instead by virtue of the impugned letter dated 25th November, 2024, the respondent has raised demand which the petitioner denies and disputes as arbitrary and not maintainable.

7. According to the writ petitioner, pursuant to the demand raised vide a communication dated 11th July 2019, she has deposited taxes in the manner as follows:

i) for the period from 12^th July, 2019 to 12^th July 2019 – vide Receipt No. WB1R190700005898/WB1907116058261 dated 12^th July, 2019

ii) for the period from 12th July, 2019 to 11th October, 2019 – vide Receipt No. WB1R190800009676/WB19082011337149 dated 20^th August, 2019 and

iii) for the period from 12^th October, 2019 to 11^th January, 2020 – vide Receipt No. WB1R190900016456/WB19093027203299 dated30^th September, 2019.

8. Hence, the petitioner says that in view of payments made by her in the manner as stated above, there remains no outstanding dues of additional tax and motor vehicle tax against the petitioner’s permit for the period from 13^th July, 2019 to 30^th September, 2020. According to the writ petitioner, therefore, the demand made by the Regional Transport Officer and ex-officio Assistant Director, STA, West B