NEW DELHI, Aug 31: A bench of Justices Manoj Misra and Ujjal Bhuyan said that 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.
Bench delivered its verdict on an appeal challenging a December 2024 judgement of the Andhra Pradesh High Court.
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,” cort said.
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