Odisha News, Odisha Latest news, Odisha Daily - OrissaPOST
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
No Result
View All Result
OrissaPOST - Odisha Latest news, English Daily -
No Result
View All Result

Motor Vehicle Tax shouldn’t be levied if vehicle not used in ‘public place’: SC

PTI
Updated: August 31st, 2025, 20:07 IST
in Business, Home News, National
0
Supreme Court

File pic

Share on FacebookShare on TwitterShare on WhatsAppShare on Linkedin

New Delhi: Motor vehicle tax is compensatory in nature and if a vehicle is not used or not kept for use in a ‘public place’, then its owner should not be burdened with motor vehicle tax for such period, the Supreme Court has said.

A bench of Justices Manoj Misra and Ujjal Bhuyan delivered its verdict on an appeal challenging a December 2024 judgement of the Andhra Pradesh High Court.

Also Read

Watch viral video: Three dead in US as 'intoxicated' Indian-origin driver crashes semi-truck

Watch viral video: Three dead in US as ‘intoxicated’ Indian-origin driver crashes semi-truck

8 hours ago
NHRC

NHRC warns states after 3,639 cold wave deaths in India

9 hours ago

“Motor vehicle tax is compensatory in nature. It has a direct nexus with the end use. The rationale for levy of motor vehicle tax is that a person who is using public infrastructure, such as, roads, highways etc. has to pay for such usage,” the apex court said.

Referring to section 3 of The Andhra Pradesh Motor Vehicle Taxation Act, 1963, the bench said the legislature has consciously used the expression ‘public place’ in this provision.

Section 3 of the Act deals with levy of tax on motor vehicles.

“If a motor vehicle is not used in a ‘public place’ or not kept for use in a ‘public place’ then the person concerned is not deriving benefit from the public infrastructure; therefore, he should not be burdened with the motor vehicle tax for such period,” the top court said in its judgement delivered on August 29.

It said section 3 of the Act is the charging provision and it authorises the state government to impose tax on motor vehicles.

The bench said the taxable event under section 3 is when a vehicle is used or kept for use in a ‘public place’ in the state.

“Therefore, the tax is on the user or intendment for use of motor vehicle in a ‘public place’. Thus, if a vehicle is actually used in a ‘public place’ or kept in such a way that it is intended to be used in a ‘public place’ then the tax liability accrues,” it said.

The top court said when admittedly the motor vehicles of the appellant firm in this case were confined for use within the Rashtriya Ispat Nigam Limited (RINL) premises which is a closed area, then question of the vehicles being used or kept for being used in a ‘public place’ does not arise.

The bench said in this case, the motor vehicles in question were used or kept for use only within the restricted premises of RINL which was not a ‘public place’.

“Therefore, the said vehicles are not liable to be taxed for the period the said vehicles were used or kept for use within the restricted premises of RINL,” it said, while allowing the appeal.

The bench delivered its verdict on an appeal filed by a firm engaged in the business of providing logistic support since 1985.

It noted the firm was awarded a contract in November 2020 for handling and storage of iron and steel materials at central dispatch yard within Visakhapatnam Steel Plant, Andhra Pradesh, a corporate entity of RINL.

The bench said the company deployed 36 motor vehicles for plying within the central dispatch yard premises.

The firm told the apex court that the central dispatch yard was enclosed by compound walls and ingress and egress was regulated through gates where Central Industrial Security Force (CISF) personnel were deployed and no member of public has any right to access it.

The issue arose after the firm requested the Andhra Pradesh authority for exemption from payment of motor vehicle tax for the period its vehicles were confined and used within the central dispatch yard premises.

The bench noted this request was made in terms of section 3 of the 1963 Act.

Later, the matter reached the high court where a single judge held that the firm was plying its vehicles within the central dispatch yard which is not a ‘public place’.

The single judge directed the state authorities to refund Rs 22,71,700 to the company.

Thereafter, the authorities challenged the order before a division bench which set aside the single judge’s order.

PTI

Tags: AutomobileIndiamotor vehicle taxSupreme CourtTax
ShareTweetSendShare
Suggest A Correction

Enter your email to get our daily news in your inbox.

 

OrissaPOST epaper Sunday POST OrissaPOST epaper

Click Here: Plastic Free Odisha

#MyPaperBagChallenge

Matrumangal Jena

December 12, 2019
#MyPaperBagChallenge

Ramakanta Sahoo

December 12, 2019
#MyPaperBagChallenge

Shreyanshu Bal

December 12, 2019
#MyPaperBagChallenge

Akshaya Kumar Dash

December 12, 2019
#MyPaperBagChallenge

Anshuman Sahoo

December 12, 2019
#MyPaperBagChallenge

Adyasha Priyadarsani Sendha

December 12, 2019
#MyPaperBagChallenge

Priyabrata Mohanty

December 12, 2019
#MyPaperBagChallenge

Spinoj Pattnaik

December 12, 2019
#MyPaperBagChallenge

Subhajyoti Mohanty

December 12, 2019
#MyPaperBagChallenge

Sarfraz Ahmad

December 12, 2019
#MyPaperBagChallenge

Priyasha Pradhan

December 12, 2019
#MyPaperBagChallenge

Debasis Mohanty

December 12, 2019
#MyPaperBagChallenge

Vandana Singh

December 12, 2019
#MyPaperBagChallenge

Faiza Firdous

December 12, 2019
#MyPaperBagChallenge

Rajashree Manasa Mohanty

December 12, 2019
#MyPaperBagChallenge

D Rama Rao

December 12, 2019
#MyPaperBagChallenge

Swarit Praharaj

December 12, 2019
#MyPaperBagChallenge

Sisirkumar Maharana

December 12, 2019
#MyPaperBagChallenge

Mandakini Dakua

December 12, 2019
#MyPaperBagChallenge

Aishwarya Ranjan Mohanty

December 12, 2019
#MyPaperBagChallenge

Subhajyoti Mohanty

December 12, 2019
#MyPaperBagChallenge

Diptiranjan Biswal

December 12, 2019
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
#MyPaperBagChallenge

Dibya Ranjan Das

December 12, 2019
#MyPaperBagChallenge

Ipsita

December 12, 2019
#MyPaperBagChallenge

Praptimayee Biswal

December 12, 2019
#MyPaperBagChallenge

Arya Ayushman

December 12, 2019
#MyPaperBagChallenge

Anup Mahapatra

December 12, 2019
#MyPaperBagChallenge

Chinmay Kumar Routray

December 12, 2019
#MyPaperBagChallenge

Pratyasharani Ghibela

December 12, 2019
#MyPaperBagChallenge

Tabish Maaz

December 12, 2019

Archives

Editorial

Xi’s Purges

Brahma Chellaney
October 23, 2025

Brahma Chellaney During his 13 years in power, Xi Jinping has steadily tightened his grip on all levers of authority...

Read moreDetails

Behold Gen Z

GenZ
October 22, 2025

A new wave of political movements without any so-called ideological underpinning except for deafeningly noisy demands for basic citizens' needs...

Read moreDetails

Trumpian Dilemma

October 20, 2025

After showing admirable and decisive toughness in defusing the crisis in the Middle East, US President Donald Trump has been...

Read moreDetails

Empty Ambition

Rights & Restrictions: AAKAR PATEL
October 19, 2025

When was the last time you read or saw something about India and the G20? And what do you recall...

Read moreDetails
  • Home
  • State
  • Metro
  • National
  • International
  • Business
  • Editorial
  • Opinion
  • Sports
  • About Us
  • Advertise
  • Contact Us
  • Jobs
Developed By Ratna Technology

© 2025 All rights Reserved by OrissaPOST

  • News in Odia
  • Orissa POST Epaper
  • Video
  • Home
  • Trending
  • Metro
  • State
  • Odisha Special
  • National
  • International
  • Sports
  • Business
  • Editorial
  • Entertainment
  • Horoscope
  • Careers
  • Feature
  • Today’s Pic
  • Opinion
  • Sci-Tech
  • About Us
  • Contact Us
  • Jobs

© 2025 All rights Reserved by OrissaPOST

    • News in Odia
    • Orissa POST Epaper
    • Video
    • Home
    • Trending
    • Metro
    • State
    • Odisha Special
    • National
    • International
    • Sports
    • Business
    • Editorial
    • Entertainment
    • Horoscope
    • Careers
    • Feature
    • Today’s Pic
    • Opinion
    • Sci-Tech
    • About Us
    • Contact Us
    • Jobs

    © 2025 All rights Reserved by OrissaPOST