Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Online)(Tel) 64495

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P.Sam Koshy, Narsing Rao Nandikonda, JJ
Tirumala Cabs – Appellant
Versus
Government Of Telangana – Respondent
W.P.No.21257 of 2014|W.P.No.9259 of 2015|W.P.No.9421 of 2015|W.P.No.9666 of 2015|W.P.No.21448 of 2014|W.P.No.22330 of 2014|W.P.No.22335 of 2014|W.P.No.22341 of 2014|W.P.No.23073 of 2014|W.P.No.23075 of 2014|W.P.No.23076 of 2014|W.P.No.23083 of 2014|W.P.No.24613 of 2014|W.P.No.24797 of 2014|W.P.No.28145 of 2014|W.P.No.29713 of 2014|W.P.No.34340 of 2014

Advocates:
For the Appellants/Petitioners: D.Avinash Desai, S.Arifullah
For the Respondents: A.Sudershan Reddy

Quarterly motor vehicle tax paid in one successor state for the period up to 31.03.2015 is deemed paid for both successor states under the Reorganization Act, prohibiting double taxation for that period. Post 31.03.2015, successor states may collect taxes according to their respective independent executive notifications.

Headnote:(A) Andhra Pradesh Reorganization Act, 2014 - Section 72(1) - Motor Vehicles Taxation Act, 1963 - Section 3 - Validity of levy of motor vehicle tax - Tax paid for any quarter up to 31.03.2015 in any of the successor states shall be deemed to have been paid for both successor states - Principle of legal fiction in interpretation of statutes - Once tax is paid in one successor state, it should be honoured in the other until the specified cutoff date. (Paras 17, 18, 22, 45)

(B) Administrative Law - Interpretation of Government Orders - Where powers exist under law, misquoting a provision or failure to specifically refer to a section does not vitiate the exercise of power - Notifications issued by a unified state continue to remain in force post-bifurcation unless specifically repealed or modified by the successor state. (Paras 22, 23)

Facts of the case:
Petitioners, owners of transport vehicles with permits valid in the erstwhile unified state, challenged the demand for payment of quarterly motor vehicle tax by the successor state after having already paid such tax in the other successor state for the same period. They contended that government orders issued prior to the bifurcation mandate that tax paid in one successor state is valid for both until 31.03.2015.

Findings of Court:
The court held that all notifications and laws in force prior to the appointed day continue to be in force in the successor state under the adaptation orders. It determined that the specific government order exempting double taxation until 31.03.2015 was legally binding, and the respondent state could not ignore it by claiming it was not explicitly adopted, as the power to issue such an order existed under the relevant reorganization act.

Issues: Whether the state is entitled to collect quarterly motor vehicle tax from vehicle owners who have already paid the same tax in the other successor state for the same period, and the validity of a later government order imposing tax from 01.04.2015.

Ratio Decidendi: The court applied the principle that an authority does not lack power merely because the source of power is not specifically referred to, provided the power exists. It concluded that the government order created a valid exemption from double taxation for the transitional period, and once a payment is made, it must be honoured by both successor states. However, the state has the authority to levy and collect taxes from 01.04.2015 pursuant to subsequent valid executive orders.

Result: Some petitions allowed, others dismissed. Respondents prohibited from collecting tax for periods already paid up to 31.03.2015, but allowed to levy tax from 01.04.2015.

Table of Content
1. the principle of non-double taxation for contract carriages as per g.o.ms.no.43. (Para 2 , 3 , 4 , 5 , 6)
2. validity of inter-state taxation and adoption of existing notifications post-bifurcation. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
3. continuance of existing permits and taxation rules under section 72 of the reorganization act. (Para 16 , 17 , 18 , 19 , 20 , 21 , 22)
4. prohibition on double taxation up until march 31, 2015. (Para 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32)
5. final orders disposing of writ petitions based on bifurcation timeline. (Para 33 , 48 , 49)
6. legality of new tax collection mechanisms post-march 31, 2015. (Para 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47)

1. Whether Reporters of Local newspapers may be allowed to see the Judgments? : Yes/No

2. Whether the copies of judgment may be marked to Law Reporters/Journals? : Yes/No.

3. Whether His Lordship wishes to see the fair copy of the Judgment? : Yes/No.

_________________________________

W.P.No.21257 of 2014

Tirumala Cabs,

M Sunil Kumar

S/o M Devender Reddy Aged about 37 years

Rio 320/4 A V Road Kalasapalyam

Bangalore Karanataka State.

W.P.No. 9259 of 2015

Pohtula Bala Obula Reddy Kadapa A.P And 7 Otrs,

Occ Bus Owner R/o H No 20/908,

Cooperative Colony, Kadapa ,

Andhra Pradesh State,

Vehicle R.No. AP04Y8829 APO4Y9279.

W.P.No. 9421 of 2015

Vallabhaneni Nagaraj Kumar Chowdary Guntur Dist And 4 Others.

S/o Satyanarayana, Occ: Bus Owner,

R/o D.No. 69162, TN Club Road,

Nandulapet, Tenali, Guntur District,

Andhra Pradesh State,

Vehicle R.No. KL09Y3353 KL09Y3343.

W.P.No. 9666 of 2015

M/S DIWAKAR ROAD LINES ANANTHAPUR DIST AND 9 OTHERS,

Rep by J C Uma Reddy W/o J C Prabhakar Reddy ,

R/o 15311 Sanjeeva Nagar,Tadipatri,

Ananthapur District, Andhra Pradesh State

Vehicle R.Nos AP2TB3915, AP02TB3231,

APO2TB3213 AP02TB395.

W.P.No. 21448 of 2014

M/s Diwakar Road Lines

Rep by J C Uma Reddy W/o J C Prabhakar Reddy, C/o Nabin Kumar Amarka,

Rama chandrapur Bazar Jatni Khurda

Orissa State.

W.P.No. 22330 of 2014

Kaveri Kamakshi Travels Rep by M Penchala Naidu

S/o M Narasimham,

R/ o Near APSRTC BusStand ,Kurnool Road,

Ongole, Prakasam District.

W.P.No. 22335 of 2014

Smt V Syamala

W/o V Ramachandra Reddy,

R/o 1/4411331 Maruthi Nagar, Kadapa

AP 04 Y 4446 AP 04 V 2223 AP 03 X 1296 and

AP 04 Y 0779.

W.P.No. 22341 of 2014

Mallina Satyanarayana Rao S/o Venkata Rao

R/o Aryapuram Rajahmundry,

East Godavari District.

W.P.No. 23073 of 2014

Agy George

S/o George , R/o 27/1264 14A, Link Heights,

Panambilly Nagar, Ernakulam - Kerala State.

W.P.No. 23075 of 2014

KPN Travels India Limited,

Rep by its Managing Director,

K P Natarajan S/o Ponmalai Gounder,

R/o Chikkabajana Mandir Street, Sarjapura Post,

Anekal Taluq Bangalore Karnataka State.

W.P.No. 23076 of 2014

M Jahangir Basha S/o Late M Akbar

R/o 20/9, Azeema Building,

TSP Road, Kalsipalyam,

Bangalore Karnataka State.

W.P.No. 23083 of 2014

Saif Sikandar

S/o Abdul Hameed Sikandar,

Prop of M/s KGN Travels,

R/o 19/1 TSP Road Kalasipalyarn,

Bangalore Karnataka State.

W.P.No. 24613 of 2014

K R Suresh Kumar S/o K V Rama Krishnan

Proprietor of M/s Kallada Tours and Travels,

R/o No 14 Hosur Main Road,

Madivala Bangalore Karanataka State.

W.P.No. 24797 of 2014

Abdul Kaleem

S/o Mohammed Hayath Prop Saleem Tours and Travels,

R/o 335/5 TSP Road,

Kalasipalyam, Bangalore, Karnataka State.

W.P.No. 28145 of 2014

M/s Komitla Services

Rep by Managing Partner K Satyanarayana Reddy, S/o K Adi Reddy, R/o No 15 4th Cross Koramangala, 5th Block, Bangalore, Karnataka State.

W.P.No. 29713 of 2014

BABA TOURS AND TRAVELS

Rep by Sri P Pavan Chandra S/o P Prabhaker,

R/o Sy No 58 and 75, Thummaloor Village,

Maheshwaram Mandal,Ranga Reddy District.

W.P.No. 34340 of 2014

ABDUL KHALEEM BANGALORE

S/o Mohammed Hayath, Proprietor of Saleem Tours and Travels, R/o 76 Ward No 23, Bahadurpur L/o Anekar Taluk, Bangalore, Karnataka State. ...Petitioners

Rep. by the Chief Secretary, Government of Telangana, Secretariat Bu

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