The transport operators who operate from Andhra Pradesh and enter Telangana got temporary reprieve from Hyderabad High Court which issued interim orders granting conditional stay of collection of motor vehicle tax from carriages coming into Telangana from AP. The petitioners have to submit indemnity bond for the tax demanded from the authorities and the vehicles shall not be alienated.
The Division Bench of Hyderabad High Court comprising Chief Justice Kalyanjyothi Sen Gupta and Justice P.V.Sanjay Kumar on Wednesday admitted cases filed by several owner and operators of commercial vehicles.
The petitioners who operate from AP contended that the notification issued by the Telangana government permitting the transport department to collect quarterly motor vehicle tax from them is unconstitutional. E.Manohar, senior counsel appearing for the petitioners reminded that the city of Hyderabad is the capital for AP also and the vehicles coming to capital cannot be asked to pay tax though they have paid the tax in AP. He said that the there is no provision of law which permits the authorities to collect tax from ‘other state vehicles’. Various rules, circulars were relied upon by the counsel.
K.Ramkrishna Reddy, advocate general of Telangana State contested the claims made by the petitioners. He said that the provisions of the AP State Reorganisation Act, Motor Vehicles Act give ample power to the Telangana state to collect tax.
He said that permit fee is different and the officers of Telangana are not collecting toll etc., He lamented that even after formation of the state of Telangana no tax could be collected for the last eight months as they respected the orders of Governor though they are not legally sound.
He said that the petitioners did not make out any case. He said that collection of tax is sovereign function.
The bench admitted the case and asked the Telangana to file counter affidavit answering all the issues raised by the petitioner operators. The bench asked the authorities not to collect the tax if the operators execute indemnity bond as they enter the Telangana state. They shall not alienate or transfer the vehicle. These ad interim orders will be in force only till the comprehensive interim orders are passed on Tuesday next. This relief is confined to the writ petitioners only.