Supreme Court Clarifies Motor Vehicle Taxation: Closed Premises Exempt

The Supreme Court has ruled that motor vehicle tax should not burden owners if their vehicles are confined to non-public spaces. The judgement followed an appeal against the Andhra Pradesh High Court's decision concerning the use of vehicles within restricted areas like the Rashtriya Ispat Nigam Limited premises.

A bench comprising Justices Manoj Misra and Ujjal Bhuyan clarified that motor vehicle tax connects to the use of public infrastructure, as outlined in section 3 of The Andhra Pradesh Motor Vehicle Taxation Act, 1963. Consequently, vehicles not used or intended for use in a 'public place' should be exempt from this tax.

This verdict benefits firms such as the appellant, engaged in logistics services within an enclosed central dispatch yard, by relieving them of unnecessary tax liabilities. The Court's decision aligns with the earlier judgement of a single judge from the Andhra Pradesh High Court, contrary to the division bench's overturning of that judgement.

(With inputs from agencies.)