Jaipur: The state high court has ruled that the state govt cannot impose one-time road tax on private vehicles registered outside Rajasthan in the absence of a specific notification prescribing applicable tax rates under the Rajasthan Motor Vehicles Taxation Act, 1951. The court quashed the tax demands, challans and related actions taken against petitioners. It directed the authorities to refund any amount recovered within 30 days of receiving a copy of the order.A division bench of Chief Justice Sanjay K Agrawal and Justice Sameer Jain passed the judgment Monday, while deciding a batch of writ petitions, including one filed by Harpy Core Network India Private Limited through its director Surender Singh.The petitioners had challenged the road tax demands raised by Rajasthan transport authorities on vehicles registered in other states and brought into Rajasthan. They questioned the legality of imposing one-time tax on such vehicles, arguing that the state lacked the necessary statutory notification authorising the levy.The court examined Section 4(1) of the Rajasthan Motor Vehicles Taxation Act, 1951, which provides separate provisions for taxation of vehicles registered within and outside the state. It observed that Section 4(1)(c) specifically governs vehicles registered outside Rajasthan and using roads in the state. “The provision requires the govt to notify the applicable tax rates in the official gazette,” the court said.The bench held that the notification issued on July 10, 2024, did not fulfil this statutory requirement for private, non-transport vehicles such as cars. Although the notification covered goods and passenger vehicles, no corresponding notification prescribing rates for private cars had been issued.The court further observed that Rule 28 of the Rajasthan Motor Vehicles Taxation Rules, 1951, exempts private vehicles registered outside Rajasthan from taxation when brought into the state temporarily for a period not exceeding 30 days.Holding the levy unconstitutional and without authority of law, the bench quashed the impugned challans and tax demands and ordered refunds within 30 days.
