Temporary use of a vehicle registered in another state does not incur local lifetime tax liability unless kept for over twelve months.

ORDER :

K. Sarath, J.

1. This Writ Petition is filed questioning action of the respondent No.4 in seizing the petitioner’s vehicle vide LMV Car bearing Registration No.KA-01- NB-1141 (Battery operated) and the consequential impugned Memo R.No.873/C17/2025 dated 19.03.2025 on the ground that the said vehicle was plying in Hyderabad for more than three months as the same was registered in the State of Karnataka and the said action of the respondents is contrary to G.O.Ms.No.601, Home (Tr.II) Department, dated 27.03.1963 and also contrary to the orders of this Court in W.P.No.19141 of 2015 dated 09.12.2024.

2. Heard Sri C.L.N.Gandhi, learned Counsel for the petitioner and Sri M.Vigneshwar Reddy, learned Government Pleader for Transport appearing for the respondents.

3. The Learned Counsel for the petitioner would submit that the petitioner is the owner of Telangana Gas Company having establishments in the State of Karnataka, Telangana and Andhra Pradesh, authorized LPG Distributor for HPCL. The petitioner had purchased LMV Car BMW (Battery Operated) in Karnataka vide bearing Registration No.KA-01-NB- 1141 (hereinafter referred to as ‘subject vehicle’ ) and the said vehicle is totally exempted from payment of motor vehicle tax in the State of Karnataka for Battery operated vehicle and has been using the said vehicle in all three States to all the units wherever they are located in Karnataka, Telangana and Andhra Pradesh.

4. The Learned Counsel for the petitioner would further submit that the vehicle was seized on 15.02.2025 while it was being used for the official purpose in Hyderabad on the ground of no proof of payment of Telangana State Motor Vehicle Tax vide VCR No.0198335 by the respondent No.4. The Telangana State Government has exempted the payment of tax in respect of non-transport motor vehicles that were registered and normally kept in any other State in India to facilitate the hassle free travel in the Country. The G.O.Ms.No.601, Home (Tr.II) Department dated 27.03.1963 was issued exempting motor vehicle tax in respect of other State Non-Transport vehicles which were registered and normally kept in any other State in India for which tax has been paid to the Home State and the said G.O is still subsisting and valid.

5. The Learned Counsel for the petitioner would further submit that the respondent No.3 issued a show-cause notice to the petitioner vide R.No.873/C17/2025 dated 03.03.2025 for payment of life tax of Rs.11,l4,440/- together with penalty of Rs.91,320/-. In response thereto, the petitioner submitted his explanation on 06.03.2025. In spite of the said explanation, without taking into account of the same, the respondent No.3 issued impugned Memo R.No.873/C17/2025 dated 19.03.2025 and directed to pay an amount of Rs.12,32,760/-. The said action is arbitrary and illegal and requested to allow the writ petition by setting aside impugned Memo.

6. The Learned Counsel for the petitioner in support of his contention, placed reliance on the following orders rendered by the Division Bench of this Court:

1. Ramnath Arumugam Vs. The Regional Transport Officer, Hyderabad , Unreported orders of this Court in WP No.19141 of 2015 Dated 09.12.2024

7. On the other hand the learned Government Pleader for Transport, basing on the counter filed by the respondent No.3, would submit that the petitioner despite being permanent resident of Telangana has purchased and registered the subject vehicle in Karnataka State for the sake of exemption and to evade Life Time Tax in Telangana and the subject vehicle is being used permanently within Telangan