The Karnataka high court on July 27 upheld a single-bench order directing the transport department to include employees working in private companies with offices in more than four states under the Bharat (BH) series vehicle registration.
The division bench, comprising Chief Justice Prasanna B Varale and Justice MG S Kamal, dismissed the state government's appeal against the single-bench ruling.
"In view of the notification issued by the Union Ministry of road transport and highways (MORTH) providing for registration of motor vehicles under BH series and framing /amending corresponding rules under Central Motor Vehicles Act (20th Amendment) Rules, 2021 which also provide for principle for motor vehicle tax, as noted above, it is not available for the state government to contend that it would not implement the notification. Such a stand is not justified or supported by any provisions of law..For the aforesaid reasons and analysis we are of the considered view that appellants have not made out any grounds for interference with the impugned order, accordingly, appeals are dismissed", reads the court order
In August 2021, the Union Ministry of road transport and highways rolled out the 'BH-series' registration mark, aimed to simplify vehicle registration for individuals relocating from one state to another. This facility was made available to employees of the Central government, state government, PSUs, public sector banks, government autonomous bodies or organizations, as well as private sector employees working in organizations with offices in four or more different states or Union Territories.
In November 2021, the Karnataka transport department issued a notification on BH series vehicles and registrations. However, in December 2021, it released a separate notification that excluded private sector employees from the BH-Series registration.
Following this, a petition was filed by two techies: Ranjith K P from Fortinet Technologies India and Shalini T from Accenture Solutions in the high court. They argued that the BH-series registration was launched to streamline the cumbersome process of obtaining a No Objection Certificate (NOC) from one state, applying for a new registration mark in another state, and then seeking a tax refund from the previous state of transfer.
The single bench ruling by Justice CM Poonacha directed the state government to also include new non-transport vehicles for private sector employees under the BH series.
However, the Karnataka transport department contended that private company employees often work on a contract basis and frequently switch between companies. This dynamic work arrangement makes it challenging to collect taxes promptly, as there is no guarantee of permanent employment in the same company, they said.
While it remains clear whether the state government may file an appeal to the Supreme Court, the division bench's order brings relief to lakhs of private sector employees, especially those working in Bengaluru.
An official from the Union ministry of road transport and highways said that the vehicle owners registered under the BH series are required to pay vehicle taxes every two years or in multiples of it to the state where the vehicle is located during that period. "The taxes are set at 25% higher than the uniform rate as notified. The BH Series not only benefits citizens with seamless vehicle transfers but also reduces the burden on Regional Transport Offices (RTOs) dealing with such transfers ," said an official.
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