Singan Projects Ltd v. '1 . The State of Telangana

the affidavit filed in support of the petition, the High Court may t,e pleased to direct the respondents to continue the validity of the temporary reg;ist-ation number, i-e., TS 09 FV TR 6430 b the petitioners vehicle pendang disposal of main IA NO: 1 OF 2023 . Petition unde ,r Section 151 CPC praying that in the circurnstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents to hold the special number TS 09 GA 9393 fror being allotted to another bidder/partr,, pending disposal of main Counsel for the Peiitioner: MS. K.SINDHURA REPRESENTING FOR Counsel for the Re;pondents: AGP FOR TRANSPORT SRI.KLNSWAMY The Court made the following: ORDER 7 ORDER: ) THE HON'BLE SRI JUSTICE K.SARATH WRIT PETITIONNo.ls319 OF 2o23 Heard Ms. K.Sindhura, learned counsel representing Sri K.L.N.Swamy, learned counsel lor the petitioner and learned Assistant Government Pieader lor Transport appea,ring for the respondents and perused the material available on record. 2, Learned counsel lor thc petitioner submits that the pe titior-Ler liied the prescnt Writ Pctition seeking to declare the action of the respondents demanding Rs.3,79,000/- additional life tax, as per the crrrrent Ex-showroom price list, as per amendment dated 13.O4.2023 to the Motor Vehicle Taxation Amendment Act, for petitioner's vehicle for which the invoice has been generated on 2a.O2.2O23 and paid life tax on

01.03.2023, as illegal and arbitrary.

3. Learned counsel lor the petitioncr further submits that the petitioner is a Public Limitcd Company registered under I I --- - .1 2 Compank:s Act and they have purchased a lvler.:edes - Benz GLE 3OO D 4VIATIC LWB BSVI, Sedan, Non 1'ransport Motor Car, diesel virriant uide invotce dated 28.0.1.2')23, bearing Chasis No.\/ LN1671196M0O6BO4IO2L , Eirgi re bearing No.6549208 1222367 , for an amount of Rs.71.0(),000/ - arrd the petitioner harl applied lor temporary registratior-r to Lhe concernecl aulhority i.e., respondent No.3. :rltcr pa-yment of complete lifc t:Lx, as per the invoice issued b-y tlrc r;l-rowroom on

01.03.2023 anC received the temporary registrarion number i.e. TS-O9-FV-TR-6430. Thereafter, the petitioner applied lor special numbt'r i.e. TS-09-GA-9393 and participated in the auction on 1),1. ):\.2023 but did not succeedcd ir t"he auction, as such, the petit ioner waited until the next serit:s lor the same number and srrbsequent auction was conductcrl on 30.05.2023 and the pr-.titione:r succeeded in the said auctior-r and got allotted special registraticn number as TS-09 GB 9393.

4. Learned r;ounsel for the petitioner furthcr :;ubmits that after succeeding irr the said auction on 30.C5.2023, the petitioner appr orrched the competent authorit.l, lol registration / 3 I I of Motor Vehicle, but the registering authority did not accept the application submitted by the petitioner by stating that as per Section 2(aal of the Telangana Motor Vehicle Taxation Amendment Act,2023, (Act No.6 ot 20231, the tax must be paid as per the current ex-showroom price but the petitioner purchased the vehicle uide: invoice generated on 28.02.2023, which is much prior to the date on which the Act No.6 of 2023 came into lorce i.e. the petitioner paid lile ta-x on 01.03.2023 whereas the Amended Act came into force on 21.O4.2023.

5. Learned counsel lor the petitioner further submits that the Amended Act came into lorce on 21.O4.2023 through G.O.Ms.No. 12, Transport, Roads and Buildings (TR.l) Department, dated 21.O4.2023, which is subsequent to the date of the invoice ald after payment ol 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 alter accepting the life ta-r paid as per the invoice dated 28.02.2023 issued by the manulacturer and on the contrary, the respondent authorities insisted the petitioner and :4 raised an invoi,:e demanding to pay the additic,nal life tax o[ Rs.3,79,000/ as per the newly Amended Act. Blt the t:rxation cannot be inrpl:rncnted with a retrospective clfcct.as such,thr- authority cannlt impose a life tax as per the currcnt ex- showroom pricr: for a vehicle which has been lturchased and invoice generat:cl on 28.02.2023, which is mu<:h prior to the date ol enforcerrent of the Amendment Act No.6 ol 2023 irnd the said action of thc. respondent authorities is illegal a-:rd arbitrarl', hence, learned counsel requested this Court to allou- thc u.rit petition blr rlirr:cting the respondent authorities to register the petitioner's vehicle Mercedes - Benz GLE 3OO D 4MATIC LWB BSVI, Sedan, \on Transport Motor Car, withoutt insisting for payrnent of irdc.itional life tax amount of Rs.3,79.OO3/ 6, On the other hand, learned Assistant Gove rnrtent PLeader for Transport. basing on the counter affidavit liled by respondent No..3, submits that every authorizetl dealer rr"'ill generate temporary registration and the same uill be lont arded to the Registering Authority by coliecting life time tax based on the class ol v,:hicle and cost of the vehicle as per the Motor ::5:: Vehicle Taxation Act. As per the Motor Vehiclc Taxation rules no vehicle shal1 ply on public place unless they pay valid road t:x/liletime tax. After getting temporary registration number the petitioner has to apply for registration of vehicle under Section 41 of Motor Vehicle Act, 1988, by producing the vehicle before the registering authority within 30 days. The petitioner's vehicle temporarily registered on O1.03.2023 and the same was valid up to 30.03.2023. the petitioner on 24.03.2023 and

30.05.2023 with his willingness has submitted the application for Special Number 9393 and was successlul in bid on

30.O5.2023 and the petitioner company was allotted TS-09-GB-

9393. As per Ruie 81(6) of Telangana State Motor Vehicles Rules, 1989 (for brevity, "Rules, 1989"), the vehicle has to be registered within 15 days from the date of allotment, failing which the special number will be cancelled n,ithout any lurther notice. He further submitted thzLt the petitioner has paid tax @ 2Oo/o on invoice value as per the Seventh Schedule in G.O.Ms.No.22, Transport Roads and Buildings Department (TR.l), dated 07.O5.2022, as the petitioner is a compaly. The 6 -I said G.O.Ms.llo.22 was issued by the Governmenl of Telangana with regard to the enhancement of life tax on r:ert,ain categories of Molor Ve'l-iir:k:s in Third Sixth and Seventh Schedules in the Act 1963. [n view of the same, the Governmt:nt of Teiangana has issued an extraordinary Gazette Act No.6 of 2C23 by way of Amendment. ir:serting new clause (aa) in Section 2, which reads as under: 2 (aa) "Cost oJ' the Vehicle" means in th.e case of motor uehicLe manufaclurec' irt India the basic manufactuing cost and excise duty phLs salzs tax/ GST or ang other leug as may lte opplicable utithout albutinq ang cash or trade discount. Explartation: (i) the cost of lhe uelit'le shall not be less tlutn the Ex-shou,roorn pice of the uehicle .fued bg the manufacturer; (ii) in the cose oJ importerl motor uehicle:;, the prices shotun in the bill of entrA, shaLl be inclusiue of customs dutg, sales tox/ GST or anlJ other leuy, as the cese maLt be aopLicable.

7. Learned Assistalt Government Pleader 1br Transport lurther submits tlrat, in this case, two dates are imoortant i.e. the date of purchzLse of the vehicle and the date of registration of the said vehicl,:. As per the amended Act, date of purchase o[ the vehicie shoulC not be taken into consideration fcr payment of life tax, as life tax should be paid at the time of registration 7 7 , on Lhe cost of the vehicle. In view of the same, learned Assistant Government Pleader for Transport submitted that there are no merits in the Writ Petition and requested this Court to dismiss the Writ Petition on devoid of merits.

8. Alter hearing both sides and on a perusing the entire material available on record, this Court is of the considered view that the petitioner has purchased the said vehicle on

28.O2.2023 and the sarne was temporariiy registered on O1.O3.2023 which is valid up to 30.03.2023 and the petitioner got special number i.e. TS-09-GA-9393 on 30.05.2023. There is no dispute with regard to the payrnent of life tax on 01.03.2023 at the time of tempora4r registration and belore allotment of the special number, the Telangana Government issued Gazette Notilrcation dated 13.04.2023 for Act No.6 of 2023 to amend the Telangana Motor Vehicle Taxation Act, 1963. In the said Gazette Notification, at point No.2, it is mentioned as under: "h the Telangana Motor Vehicle Toxation Act, 1963 (hereinafter referred to as the principal Act), in section 2, after clouse (a), the following clause shall be inserted, namelg: 8 "(aa) "Cost of the Vehicle" meons in the case of motor uehicle manufactured in India the basic monufoctuing cost and excise duty plus:ales tax/ GST or ang other leug asmalt be applicable u.tithout allot-uing any cash or trade discount:"

9. It is also clearly mentioned in the said Gazette Notification that it shall r:ome into .force on such date as the State Government issued Notification. As per (i.O.Ms.No.12, Transport, Roads and Buildings (TR.I) Department, clated 2l .O4.2O23, t-rr; Amended Act came into force ot 27.04.2023 and the samr' is prospective effect. There is no dispute with regard to pavnx:nt made by the petitioner for lift-' ttrx on the said vehicle on O1.,13.2023 as per existing rules as on that date. In view of the same, the respondent authorities caneot insist the petitioner to prll' excess pa5,.rnent as per the Amencled Act which came into lorcc on 21 .04.2023 i.e. later date of temporary registration of the petitioner's vehicle i.e. O1.03.2023, which is after payment o1'life tax as per existing rules as on that date.

10. In view of the above circumstances, this W::it Petition is allowed directing the respondents not to insist the petitioner to payadditional Life Tax of Rs.3,79,OOO/- for regisl-ration of the t 9 ) vehicle with special number TS_09_GB_9393 and also register the vehicle of the petitioner with the special number TS_O9_GB_ 9393 by accepting the life tax paid as per invoice dated 28.02.2023 forthwith. There shail be no order as to costs. As a sequel thereto, miscellaneous petitions pending, if any, in this Writ petition shall also stand closed. That Rule Nisi has been made absolute as above. Witness THE HON'BLE THE CHIEF JUSTICE APARESH KUMAR SINGH, on this THURSDAY, THE TWENTY FIFTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE I SD/-U. SUDHA TANT REGISTRAR //TRUE COPY// CTION OFFICER To,

1. The Principle Secretary, Transport Department, Secretariat Buildings, Hyderabad, State of Telangana. Khiratabad, Hyderabad,

2. The Commissioner, Transport Department, Government of Telangana, 3 The Registering Authority, Regional Transport Authority, Hyderabad Central 4. One CC to SRl. K L N SWAtvlY, Advocate [OPUC] 5. Two CCs to GP FOR TRANSPORT, High Court for the State of Telangana. Zone, Khiratabad, Hyderabad. ,, 6. Two CD Copies t*r.,v vttt HIGH COr..'Fl-r DATED:25lCtEl2025 ORDER WP.No.15319 ot 2023 :lE :i I 2 4 tltT :) ) \k ) * .,l ALLOWING THE WRIT PETITION WITHOUT COSTS 16 \02\