Out-of-state cars can run on Karnataka roads for 1 year!

vipul_singh · 14th February 2017, 13:30

While on one hand, Indian states are working towards a all-India tax regime (GST), it is surprising that the tax structure on vehicles - the most movable of all assets - is variable at a state level.

Ministry of Surface Transport (led by Mr. Gadkari, at the moment) should take it up as a challenge and rid India of this system which leads to unnecessary competition between states and trouble for motorists. A common database available to all authorities can be used as a global source for vehicle information for random checking and validation purposes

Further, I am not sure why vehicles have to be brought to their 'home' RTO office for re-registration. What difference does it make if the Leh RTO performs the pre-registration validation or the Kannyakumari RTO does it?

The key point is that vehicles, by their very nature, are supposed to be mobile. Government rules on them should reflect that reality

BTW: what is the best way to get the Minister's attention on this issue? Any ideas?

vinay kamath · 14th February 2017, 19:19

Thanks , Waseem !!! This is a Valentines Day Gift for auto lovers!

"SC refuses to stay HC order quashing state's Act on vehicle tax

NEW DELHI: The Karnataka government on Monday failed to get a reprieve from the Supreme Court on its plea to impose tax on vehicles registered in other states but plying in Karnataka beyond 30 days.

A bench of Justices J S Chelameswar and Abhay Manohar Sapre refused to stay the Karnataka High Court's order quashing the provisions of the Karnataka Motor Vehicles Act as unconstitutional and ultra vires. The state law is also in conflict with the Union government's Motor Vehicles Act, which puts the limit of 12 months for imposing such tax.

"We are not passing any interim order. The state, where the vehicle is being run, is entitled to levy tax since its roads are used. The question, however, is if the state should collect tax from owners, who had already deposited it somewhere else," the bench said, agreeing to examine the special leave petition filed by Karnataka.

Karnataka's Additional Advocate General Devadutt Karmat defended the amendment in the KMVA that allowed the state government to levy tax on vehicles registered outside Karnataka and which are in the state for more than 30 days.

He contended that if such vehicles were taken outside the state within a period of 12 months, the owners can claim refund of the tax.

He sought a stay of the Karnataka High Court's order of March 10, 2016.

Senior advocate C S Vaidyanathan, appearing for one of the writ petitioners before the high court, submitted that the state can levy short term tax but not lifetime tax.

Section 47 of the Motor Vehicles Act lays down that when a vehicle registered in one state has been kept in another state for more than 12 months, the owner of the vehicle shall apply for a new registration mark.

The high court had said lifetime tax levied during registration cannot be levied on a vehicle that is already registered, merely on presumption that a vehicle registered outside has remained in Karnataka for more than 30 days.

"This would result in the state directly varying the period prescribed under Section 47, of 12 months. The state legislature does not have the legislative competence to do so," the HC has said."

DH News Service 14.02.2017

SILVERWOOD · 14th February 2017, 20:10

Today's DH.

SC refuses to stay HC order quashing state's Act on vehicle tax

NEW DELHI: The Karnataka government on Monday failed to get a reprieve from the Supreme Court on its plea to impose tax on vehicles registered in other states but plying in Karnataka beyond 30 days.

A bench of Justices J S Chelameswar and Abhay Manohar Sapre refused to stay the Karnataka High Court's order quashing the provisions of the Karnataka Motor Vehicles Act as unconstitutional and ultra vires. The state law is also in conflict with the Union government's Motor Vehicles Act, which puts the limit of 12 months for imposing such tax.

"We are not passing any interim order. The state, where the vehicle is being run, is entitled to levy tax since its roads are used. The question, however, is if the state should collect tax from owners, who had already deposited it somewhere else," the bench said, agreeing to examine the special leave petition filed by Karnataka.

Karnataka's Additional Advocate General Devadutt Karmat defended the amendment in the KMVA that allowed the state government to levy tax on vehicles registered outside Karnataka and which are in the state for more than 30 days.

He contended that if such vehicles were taken outside the state within a period of 12 months, the owners can claim refund of the tax.

He sought a stay of the Karnataka High Court's order of March 10, 2016.

Senior advocate C S Vaidyanathan, appearing for one of the writ petitioners before the high court, submitted that the state can levy short term tax but not lifetime tax.

Section 47 of the Motor Vehicles Act lays down that when a vehicle registered in one state has been kept in another state for more than 12 months, the owner of the vehicle shall apply for a new registration mark.

The high court had said lifetime tax levied during registration cannot be levied on a vehicle that is already registered, merely on presumption that a vehicle registered outside has remained in Karnataka for more than 30 days.

"This would result in the state directly varying the period prescribed under Section 47, of 12 months. The state legislature does not have the legislative competence to do so," the HC has said.

DH News Service

noopster · 10th March 2017, 13:47

Mod Note: Some posts have been moved. Please refer this excellent new thread on a separate PIL filed by Waseem aka SILVERWOOD!

SILVERWOOD · 5th April 2017, 15:23

Dear Friends,

I have important news to share with you all.

Government of Karnataka has filed an application at the Supreme Court on 31st March 2017 asking for Stay on the Judgement delivered by the Division Bench of Karnataka High court.

They have mentioned that 190 people have filed for refund of the tax and the same amounts to 30 crore.

The matter is likely to come up for hearing on this Friday, 7th April 2017.

I will keep you all updated on the same.

Waseem Memon

Latheesh · 5th April 2017, 15:29

30 Crores and 190 vehicle owners? Average per vehicle claim of 15.8 Lakhs, that does not looks correct.

aroonanand · 5th April 2017, 15:53

Quote:

Originally Posted by Latheesh

30 Crores and 190 vehicle owners? Average per vehicle claim of 15.8 Lakhs, that does not looks correct.

Absolutely. Assuming state taxes at 18% (which I think is the highest slab), the WDV of a vehicle at the time of levy of this tax should be INR 88 lacs. How many cars make the cut at this price and how many of these would be non KA cars caught in KA and the owners filing for refund?

And for a second, even assuming the number is correct and the state is supposed to issue refunds to the tune of INR 30 crores, it means the taxes were collected incorrectly and against the law. Why cry foul now when they laughed to the bank at the time of collection and thumped their chest about the amounts collected? The state should be asked to refund this along with interest !

Praying for justice and victory, Waseem

binand · 5th April 2017, 21:08

Quote:

Originally Posted by aroonanand

How many cars make the cut at this price and how many of these would be non KA cars caught in KA and the owners filing for refund?

I imagine these are PY-registered luxury cars priced Rs. 1Cr+ or thereabouts.

swiftnfurious · 5th April 2017, 22:18

Quote:

Originally Posted by binand

I imagine these are PY-registered luxury cars priced Rs. 1Cr+ or thereabouts.

I doubt they had the b*lls to touch any of the high end cars. Most guys caught were in the sub 10L segment cars - they have got their numbers wrong in this case I assume.

LionX · 8th April 2017, 18:12

Quote:

Originally Posted by SILVERWOOD

Dear Friends,

I have important news to share with you all.

Government of Karnataka has filed an application at the Supreme Court on 31st March 2017 asking for Stay on the Judgement delivered by the Division Bench of Karnataka High court.

They have mentioned that 190 people have filed for refund of the tax and the same amounts to 30 crore.

The matter is likely to come up for hearing on this Friday, 7th April 2017.

I will keep you all updated on the same.

Waseem Memon

Waseem,
Any update on the hearing..

SILVERWOOD · 15th April 2017, 11:40

Quote:

Originally Posted by LionX

Waseem,
Any update on the hearing..

No Sir.

The matter is yet to come up for hearing.We are keeping a close eye on the list.

Waseem

SILVERWOOD · 20th July 2017, 20:51

Dear Friends,

Get ready for the next fight. We are contemplating to help our people in getting refund of the life time tax paid by them after enforcement of February 2014 MV Amendment. Those who have paid the tax, but not registered would be eligible for this refund process. On face of it, I would like to make it on record that the refund process is pretty lengthy one and time consuming.

We have consulted with couple of lawyers on the process and we have made our strategy according to that. Our members will have to be patient till we succeed. We are planning this process to be ultra transparent and once our members give us the required support we wish to get into this long to be drawn battle.

The process can take few months or few years as well. The fate of the refund will solely depend on the outcome of Special Leave Petition filed by the Karnataka Government against the quashing of the law. We are pretty confident, how many long years it may take the verdict would be on our side. Thanks to the present enactment of GST (One Nation, One Tax), we are also very confident that the Honorable Court will uphold the judgement of Honorable Karnataka High Court Judgement by quashing this MV Amendment as unconstitutional and ultra vires.

The moment a law has been struck down by the competent court as unconstitutional and ultra vires, any or all of the actions taken in accordance against the impugned amendment becomes unconstitutional too. By all means the people who have paid taxes against this amendment are automatically eligible for refund.

Hence we want people to file for a refund, before they forget this payment or shift out of Bangalore. Once you submit the details in the google forms, we would send you a list of documents that has to be sent to us so as to submit the same to the respective RTO’s. The work flow and process would be detailed in the separate mail that would be sent to all.

https://docs.google.com/forms/d/e/1F...B_p2Q/viewform

Waseem.

gksunil · 20th July 2017, 21:46

When is the next hearing?

King_pin09 · 21st July 2017, 14:34

Quote:

Originally Posted by Kiterunner

Thank you for the fight Waseem Sir

Glad that the honourable Supreme Court upheld the High Court judgement. Hope the Karnataka Govt drops this issue and concentrate on other pressing matters.

+1.

Similar work needs to be done here in Mumbai as well. Here the cops have a repute of hiding behind trees at every nook / signal and spring on to any outstate vehicles they may find and stop them with full diligence. What happens next and how these poor outstate vehicles are let to go, is anybody's guess.

Foxbat · 21st July 2017, 18:14

Quote:

Originally Posted by King_pin09

+1.

Similar work needs to be done here in Mumbai as well. Here the cops have a repute of hiding behind trees at every nook / signal and spring on to any outstate vehicles they may find and stop them with full diligence. What happens next and how these poor outstate vehicles are let to go, is anybody's guess.

Where in Mumbai does this happen?

I lived in Mumbai between April 2012 and January 2017 in Goregoan East for the first two years and the rest in Powai.

I had a UP registered car drove it 27-28k during the period almost all in the City. I was stopped only once for just the out of state number (late 2016) and they let me go when I told them I was leaving Mumbai. My car was unluckily towed 3 times and I got fined for taking a wrong turn, window film, having a reverse beeper etc. by the Traffic Police but no one ever questioned the UP number. I think once when it got towed I was advised to get it changed soon.

14th February 2017, 13:30	#466
vipul_singh BHPian Join Date: Sep 2005 Location: BLR / Lucknow Posts: 595 Thanked: 833 Times View My Garage	Re: Out-of-state cars can run on Karnataka roads for 1 year! While on one hand, Indian states are working towards a all-India tax regime (GST), it is surprising that the tax structure on vehicles - the most movable of all assets - is variable at a state level. Ministry of Surface Transport (led by Mr. Gadkari, at the moment) should take it up as a challenge and rid India of this system which leads to unnecessary competition between states and trouble for motorists. A common database available to all authorities can be used as a global source for vehicle information for random checking and validation purposes Further, I am not sure why vehicles have to be brought to their 'home' RTO office for re-registration. What difference does it make if the Leh RTO performs the pre-registration validation or the Kannyakumari RTO does it? The key point is that vehicles, by their very nature, are supposed to be mobile. Government rules on them should reflect that reality BTW: what is the best way to get the Minister's attention on this issue? Any ideas?
	(4) Thanks

14th February 2017, 19:19	#467
vinay kamath Senior - BHPian Join Date: Mar 2011 Location: MUMBAIBANGALORE Posts: 1,348 Thanked: 1,851 Times	Re: Out-of-state cars can run on Karnataka roads for 1 year! Thanks , Waseem !!! This is a Valentines Day Gift for auto lovers! "SC refuses to stay HC order quashing state's Act on vehicle tax NEW DELHI: The Karnataka government on Monday failed to get a reprieve from the Supreme Court on its plea to impose tax on vehicles registered in other states but plying in Karnataka beyond 30 days. A bench of Justices J S Chelameswar and Abhay Manohar Sapre refused to stay the Karnataka High Court's order quashing the provisions of the Karnataka Motor Vehicles Act as unconstitutional and ultra vires. The state law is also in conflict with the Union government's Motor Vehicles Act, which puts the limit of 12 months for imposing such tax. "We are not passing any interim order. The state, where the vehicle is being run, is entitled to levy tax since its roads are used. The question, however, is if the state should collect tax from owners, who had already deposited it somewhere else," the bench said, agreeing to examine the special leave petition filed by Karnataka. Karnataka's Additional Advocate General Devadutt Karmat defended the amendment in the KMVA that allowed the state government to levy tax on vehicles registered outside Karnataka and which are in the state for more than 30 days. He contended that if such vehicles were taken outside the state within a period of 12 months, the owners can claim refund of the tax. He sought a stay of the Karnataka High Court's order of March 10, 2016. Senior advocate C S Vaidyanathan, appearing for one of the writ petitioners before the high court, submitted that the state can levy short term tax but not lifetime tax. Section 47 of the Motor Vehicles Act lays down that when a vehicle registered in one state has been kept in another state for more than 12 months, the owner of the vehicle shall apply for a new registration mark. The high court had said lifetime tax levied during registration cannot be levied on a vehicle that is already registered, merely on presumption that a vehicle registered outside has remained in Karnataka for more than 30 days. "This would result in the state directly varying the period prescribed under Section 47, of 12 months. The state legislature does not have the legislative competence to do so," the HC has said." DH News Service 14.02.2017
	(5) Thanks

14th February 2017, 20:10	#468
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Out-of-state cars can run on Karnataka roads for 1 year! Today's DH. SC refuses to stay HC order quashing state's Act on vehicle tax NEW DELHI: The Karnataka government on Monday failed to get a reprieve from the Supreme Court on its plea to impose tax on vehicles registered in other states but plying in Karnataka beyond 30 days. A bench of Justices J S Chelameswar and Abhay Manohar Sapre refused to stay the Karnataka High Court's order quashing the provisions of the Karnataka Motor Vehicles Act as unconstitutional and ultra vires. The state law is also in conflict with the Union government's Motor Vehicles Act, which puts the limit of 12 months for imposing such tax. "We are not passing any interim order. The state, where the vehicle is being run, is entitled to levy tax since its roads are used. The question, however, is if the state should collect tax from owners, who had already deposited it somewhere else," the bench said, agreeing to examine the special leave petition filed by Karnataka. Karnataka's Additional Advocate General Devadutt Karmat defended the amendment in the KMVA that allowed the state government to levy tax on vehicles registered outside Karnataka and which are in the state for more than 30 days. He contended that if such vehicles were taken outside the state within a period of 12 months, the owners can claim refund of the tax. He sought a stay of the Karnataka High Court's order of March 10, 2016. Senior advocate C S Vaidyanathan, appearing for one of the writ petitioners before the high court, submitted that the state can levy short term tax but not lifetime tax. Section 47 of the Motor Vehicles Act lays down that when a vehicle registered in one state has been kept in another state for more than 12 months, the owner of the vehicle shall apply for a new registration mark. The high court had said lifetime tax levied during registration cannot be levied on a vehicle that is already registered, merely on presumption that a vehicle registered outside has remained in Karnataka for more than 30 days. "This would result in the state directly varying the period prescribed under Section 47, of 12 months. The state legislature does not have the legislative competence to do so," the HC has said. DH News Service Attached Thumbnails
	(15) Thanks

10th March 2017, 13:47	#469
noopster Distinguished - BHPian Join Date: Feb 2010 Location: Pune Posts: 9,237 Thanked: 12,903 Times View My Garage	Re: Out-of-state cars can run on Karnataka roads for 1 year! Mod Note: Some posts have been moved. Please refer this excellent new thread on a separate PIL filed by Waseem aka SILVERWOOD!
	(2) Thanks

5th April 2017, 15:23	#470
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Out-of-state cars can run on Karnataka roads for 1 year! Dear Friends, I have important news to share with you all. Government of Karnataka has filed an application at the Supreme Court on 31st March 2017 asking for Stay on the Judgement delivered by the Division Bench of Karnataka High court. They have mentioned that 190 people have filed for refund of the tax and the same amounts to 30 crore. The matter is likely to come up for hearing on this Friday, 7th April 2017. I will keep you all updated on the same. Waseem Memon
	(11) Thanks

5th April 2017, 15:29	#471
Latheesh Senior - BHPian Join Date: Dec 2007 Location: CNN/BLR Posts: 4,241 Thanked: 10,067 Times	Re: Out-of-state cars can run on Karnataka roads for 1 year! 30 Crores and 190 vehicle owners? Average per vehicle claim of 15.8 Lakhs, that does not looks correct.
	(2) Thanks

20th July 2017, 20:51	#477
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Out-of-state cars can run on Karnataka roads for 1 year! Dear Friends, Get ready for the next fight. We are contemplating to help our people in getting refund of the life time tax paid by them after enforcement of February 2014 MV Amendment. Those who have paid the tax, but not registered would be eligible for this refund process. On face of it, I would like to make it on record that the refund process is pretty lengthy one and time consuming. We have consulted with couple of lawyers on the process and we have made our strategy according to that. Our members will have to be patient till we succeed. We are planning this process to be ultra transparent and once our members give us the required support we wish to get into this long to be drawn battle. The process can take few months or few years as well. The fate of the refund will solely depend on the outcome of Special Leave Petition filed by the Karnataka Government against the quashing of the law. We are pretty confident, how many long years it may take the verdict would be on our side. Thanks to the present enactment of GST (One Nation, One Tax), we are also very confident that the Honorable Court will uphold the judgement of Honorable Karnataka High Court Judgement by quashing this MV Amendment as unconstitutional and ultra vires. The moment a law has been struck down by the competent court as unconstitutional and ultra vires, any or all of the actions taken in accordance against the impugned amendment becomes unconstitutional too. By all means the people who have paid taxes against this amendment are automatically eligible for refund. Hence we want people to file for a refund, before they forget this payment or shift out of Bangalore. Once you submit the details in the google forms, we would send you a list of documents that has to be sent to us so as to submit the same to the respective RTO’s. The work flow and process would be detailed in the separate mail that would be sent to all. https://docs.google.com/forms/d/e/1F...B_p2Q/viewform Waseem. Last edited by GTO : 22nd July 2017 at 09:15. Reason: ultra virus = ultra vires :)
	(12) Thanks

20th July 2017, 21:46	#478
gksunil BHPian Join Date: Nov 2007 Location: karwar Posts: 79 Thanked: 7 Times	Re: Out-of-state cars can run on Karnataka roads for 1 year! When is the next hearing?
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