Srinagar: The High Court of J&K and Ladakh on Wednesday pulled up the Transport Department for allegedly demanding 9 percent Token Tax from the owners of vehicles purchased and already registered outside the UT in violation of the court order.
In a contempt notice issued to Commissioner Secretary, J&K Transport Department, and others, a double bench of the court — Justices A M Magrey and Sanjay Dhar — in Srinagar asked the officials to adhere to an earlier court judgment in letter and spirit; directing them that there shall be no demand made of 9 percent token tax from the owners of the vehicles who have already paid the tax at the time of registration from outside the UT.
The contempt petition on the matter has been filed by one Zahoor Ahmad Bhat through advocate Altaf Mehraj.
The petition alleged violation of the final order and judgment passed by the court earlier this year which had quashed a circular by the Regional Transport Officer Kashmir to the effect of asking the petitioners to have their vehicles re-registered for assignment of new registration mark without their declaration in tune with the mandate of Rule 54 of the Central Motor Vehicles Rules, 1989 and without providing any mechanism.
The court had directed the Transport authorities to have the compliance of Section 47 of the Act, read with Rule 54 of the Central Motor Vehicles undertaken for assignment of new registration mark of the vehicles.
“Notwithstanding above directions, we leave it open for the respondents to screen, scrutinize, verify, validity/genuineness of documents of any vehicles entering in Union Territory of J&K from outside, having outside registration, ” the court had observed.
They — Transport Department — “shall not demand 9 percent token tax from the owners of the vehicles who have already paid the tax at the time of registration from outside the Union Territory (of J&K),” directed the bench today.
The court has in July this year already issued in-person notices to Commissioner Secretary Transport Department, Transport Commissioner and in-charge RTO Kashmir.
The notices followed a circular by the Transport authorities on re-registration of vehicles purchased from outside of J&K against a nine percent token tax on them in Jammu and Kashmir.
The officers were supposed to explain under which provisions of law they were demanding token tax from J&K domiciles having purchased vehicles from outside the union territory.
Counsel for the petitioner today submitted that “the respondent authorities are demanding 9 percent token tax from the owners of the vehicles”, who have applied for assignment of new registration mark in the UT even though their vehicles are duly registered outside J&K.
The counsel added “the owners have already paid life time tax on these vehicles”.
Justices Magray and Dhar appreciated the argument of the counsel saying “the submission has prima facie substance.”
They recalled that the respondent authorities in terms of order dated 12th of July, 2021, were asked to file their response within one month on the matter.
“But till date, no response has been filed,” they said adding “the violation for non-compliance is in continuation.”
The respondents, according to the judgment, were supposed to assign new registration mark for the vehicles which were already registered outside the UT without charging any token tax.
The judges today repeated their direction calling up on the Transport Department authorities to adhere to the J&K High Court judgment in letter and spirit.
“There shall be no demand made of 9% token tax from the owners of the vehicles who have already paid the tax at the time of registration outside the UT,” they directed.
They took notice of the non-compliance of the Transport Department authorities on its 12th July direction of the court.
“Response shall be filed within three weeks failing which all the respondents (Commissioner Secretary Transport Department, Transport Commissioner and Regional Transport Officer) shall appear in person”, the bench directed.
