Bengaluru: In a major relief to those using non-Karnataka registered vehicles in the State, the High Court on Thursday quashed the Karnataka Motor Vehicle Taxation (Amendment) Act, 2014 which provides for collecting lifetime tax on such vehicles.
Several non-KA numberplate bearing vehicles were seized by the Transport Department for non-payment of tax and plying in Karnataka beyond 30 days.

Transport department sources said, after the implementation of the act, Rs 500 crore revenue has been generated till date.

The court also quashed the demand notices issued by the Regional Transport Offices (RTOs) to owners of several such vehicles to pay the tax.

Justice Anand Byrareddy stated: “Lifetime tax that is levied at the point of registration of a vehicle as per the KMVT Act cannot be levied on a vehicle that is already registered, merely on a presumption that a vehicle registered outside Karnataka has remained in the State for a period exceeding 30 days.”

“Notwithstanding anything contained in the provision of Motor Vehicle Act, 1988 (Central Act 59 of 1988) and in any order or direction contained in any judgment or order of any court would indicate the “clumsy” and “ham-handed” manner in which the State Legislature has sought to undo the effect of a decision of this court which has never been questioned and which has attained finality.”

The High Court verdict, quashing state government notification on taxing non-Karnataka registered vehicles, has been welcomed by those fighting against the same.