Taxation under amendments cannot be enforced retroactively on vehicles registered before the amendment's effective date.

ORDER:

Heard Ms. K.Sindhura, learned counsel representing Sri K.L.N.Swamy, learned counsel for the petitioner and learned Assistant Government Pleader for Transport appearing for the respondents and perused the material available on record.

2. Learned counsel for the petitioner submits that the petitioner filed the present Writ Petition seeking to declare the action of the respondents in demanding Rs.3,79,000/- additional life tax, as per the current Ex-showroom price list, as per amendment dated 13.04.2023 to the Motor Vehicle Taxation Amendment Act, for petitioner's vehicle for which the invoice has been generated on 28.02.2023 and paid life tax on

01.03.2023, as illegal and arbitrary.

3. Learned counsel for the petitioner further submits that the petitioner is a Public Limited Company registered under Companies Act and they have purchased a Mercedes - Benz GLE 300 D 4MATIC LWB BSVI, Sedan, Non Transport Motor Car, diesel variant vide invoice dated 28.02.2023, bearing Chasis No.W1N1671196M0068041021, Engine bearing No.65492081222367, for an amount of Rs.71,00,000/- and the petitioner had applied for temporary registration to the concerned authority i.e., respondent No.3, after payment of complete life tax, as per the invoice issued by the showroom on 01.03.2023 and received the temporary registration number i.e. TS-09-FV-TR-6430. Thereafter, the petitioner applied for special number i.e. TS-09-GA-9393 and participated in the auction on 24.03.2023 but did not succeeded in the auction, as such, the petitioner waited until the next series for the same number and subsequent auction was conducted on 30.05.2023 and the petitioner succeeded in the said auction and got allotted special registration number as TS-09-GB-9393.

4. Learned counsel for the petitioner further submits that after succeeding in the said auction on 30.05.2023, the petitioner approached the competent authority for registration of Motor Vehicle, but the registering authority did not accept the application submitted by the petitioner by stating that as per Section 2(aa) of the Telangana Motor Vehicle Taxation Amendment Act , 2023, (Act No.6 of 2023), the tax must be paid as per the current ex-showroom price but the petitioner purchased the vehicle vide invoice generated on 28.02.2023, which is much prior to the date on which the Act No.6 of 2023 came into force i.e. the petitioner paid life tax on 01.03.2023 whereas the Amended Act came into force on 21.04.2023.

5. Learned counsel for the petitioner further submits that the Amended Act came into force on 21.04.2023 through G.O.Ms.No.12, Transport, Roads and Buildings (TR.I) Department, dated 21.04.2023, which is subsequent to the date of the invoice and after payment of life tax, as such, the Amended Act is not applicable in the case of the petitioner and the respondents ought to have registered the vehicle of the petitioner after accepting the life tax paid as per the invoice dated 28.02.2023 issued by the manufacturer and on the contrary, the respondent authorities insisted the petitioner and raised an invoice demanding to pay the additional life tax of Rs.3,79,000/- as per the newly Amended Act. But the taxation cannot be implemented with a retrospective effect,as such,the authority cannot impose a life tax as per the current ex- showroom price for a vehicle which has been purchased and invoice generated on 28.02.2023, which is much prior to the date of enforcement of the Amendment Act No.6 of 2023 and the said action of the respondent authorities is illegal and arbitrary, hence, learned counsel requested