WB moves HC to reimpose motor tax

The West Bengal government filed an appeal challenging a single judge order which declared the West Bengal Additional Tax and One time Tax on Motor Vehicles (Amendment) Act 2003 "ultra-vires and unconstitutional".

The appeal was filed along with an application for stay of operation of the order dated March 26, 2004, passed by Justice B Bhattacharya. The court refused to stay his order on the ground that as the court held that the provision of collection of one time tax on vehicles was ultra-vires of the Constitution of India, the same court cannot stay the operation of the order.

The state government by introducing the amendment had directed vehicles owners to pay one time tax for the vehicles. The tax amount was large and was challenged by the Automobile Association of Eastern India (AAEI) along with several others through writ petitions.

In the appeal, the goverment sought a stay of operation of the order as it directed the state government that "the tax already paid by the public includingthepenalties, if any, be refunded within two months with interest from the acceptance of tax till date and the interest rate will be as the rate of State Bank of India's short depository rate for such period".

The case will be heard by the division bench presided over by the Chief Justice AK Mathur.