In a big relief for private sector employees, a division bench of Karnataka high court has upheld the validity of the notification pertaining to Bharat (BH) series registration for vehicles issued by the Centre.
“The state government can collect tax only after a vehicle is registered under the provisions of Motor Vehicles Act, a central legislation,” a division bench comprising Chief Justice Prasanna B Varale and Justice MGS Kamal observed in its order while dismissing the writ appeals filed by the transport department, challenging a single-judge bench order allowing the registration of vehicles of private sector employees under BH series.
“In view of the notification issued by the ministry of road transport and highways (MoRTH) providing for registration of motor vehicles under BH series and framing/amending corresponding rules under Central Motor Vehicles Act (20th Amendment) Rules, 2021, which also provides the basis for motor vehicle tax, it is not available for the state government to contend that it wouldn’t implement the notification. Such a stand is not justified or supported by any provisions of law,” the bench noted, while making it clear that it sees no need to intervene in the single bench’s order.
On August 26, 2021, MoRTH had introduced the BH registration mark for new motor vehicles, a process which wouldn’t require the assignment of new registration mark if the owner of the vehicle moves from one state to another. The facility was made available on a voluntary basis to defence personnel, employees of central/state government, central/state government public sector undertakings, and private sector companies/organisation, with offices in four or more states/union territories.
However, on December 20, 2021, the state transport department issued a notification excluding private sector employees from the facility, prompting several of them to approach the high court.
On December 16, 2022, a single bench allowed their petitions and directed the authorities to register vehicles of private company employees with BH registration.
Department’s opposition
Challenging the same, the transport department contended that the amendment to the Motor Vehicles Rules to the extent of levying tax is coming in the way of state collecting the tax. The department further argued that under Entry 57 of List II (state list) of Schedule VII to the Constitution of India, the state has exclusive jurisdiction to impose tax on vehicles and that by amending the Motor Vehicles Rules, the MoRTH had interfered with the power and authority of the state.
