JK High Court Rules No Extra Fees for Vehicles from Other States

JK High Court Rules No Extra Fees for Vehicles from Other States

Ashiq Butt | August 21, 2024 | 10:42 PM IST | Courts & Law, Jammu Kashmir | Follow on Google News

JK High Court Rules No Extra Fees for Vehicles from Other States

JK High Court Rules No Extra Fees for Vehicles from Other States

Key Highlights:

1. J&K High Court invalidates 9% token tax on vehicles from other states.
2. Motor Vehicles Act, 1988 mandates single registration for India-wide use.
3. Local authorities must issue new registration mark without extra fees.

The High Court of Jammu and Kashmir and Ladakh has ruled that vehicles brought into the Union Territory (UT) from other states do not require re-registration or additional fees, as per the Motor Vehicles Act, 1988.

Justice Javed Iqbal Wani declared that the 9% token tax imposed on a vehicle transported from Haryana to Jammu and Kashmir was both illegal and discriminatory.

The case arose when Ishfaq Ahmad Tramboo of Srinagar moved his vehicle, initially registered in Gurgaon, Haryana, to Jammu and Kashmir in October 2023. Tramboo sought to re-register the vehicle for use in the UT for over 12 months.

However, the local transport authority demanded a 9% token tax on the vehicle’s value—approximately Rs. 4.00 lakhs—as a condition for issuing a new registration mark.

Tramboo contested this demand through his lawyer, Mr. Hakim Suhail Ishtiaq, arguing that the Motor Vehicles Act, 1988 did not stipulate such a fee.

The respondents defended the tax under Section 3 of the J&K Motor Vehicles Taxation Act, 1957, claiming it allowed such a charge.

Justice Wani reviewed the Motor Vehicles Act, 1988, finding that it requires only a single registration valid across India and does not support additional fees for moving a vehicle to a new state or UT.

The court upheld the previous Division Bench judgment in Zahoor Ahmad Bhat vs. Government of JK, which opposed lifetime tax based on a vehicle’s presumed extended stay.

The Court ruled in favor of Tramboo, directing the authorities to issue a new registration mark without the 9% token tax. The authorities were also instructed to seek a refund of the tax from Haryana’s registration authority if necessary.

Ashiq Butt

Ashiq Butt – is VoM News's senior staffer worked since year 2015 and he deals with correspondency and social media handles. Hailing from Doda's Marmat, Ashiq has strong grip over the collection of the data and it's compiling feature.