The Allahabad High Court has dismissed a petition seeking a direction to the respondents to refund Rs 1,74,900 to the petitioner realized as tax for his hybrid vehicle.
The Division Bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar passed this order while hearing a petition filed by Ankur Vikram Singh.
The petitioner said the vehicle was purchased by the petitioner on 13.10.2022 from Noida, UP and an amount of Rs 1,74,900 was paid as One Time Tax (OTT). The vehicle was registered on 18.10.2022.
Submissions have been made that the State has issued a notification dated 2.3.2023, inter alia providing for an amendment in the UP Motor Vehicles Taxation Act, 1997 whereby on electric vehicles purchased and registered in the State of UP from the date of notification of the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022, tax was exempted and, therefore, the petitioner is entitled to the refund of the tax.
Counsel for the respondents made submissions that the language of the exemption notification is specific requiring the purchase and registration of the vehicle from the date of notification of the Policy, 2022 dated 14.10.2022 and as admittedly, the vehicle has been purchased prior to the said date i.e on 13.10.2022, notification is not applicable and the petitioner is not entitled to the refund.
Counsel for the petitioner attempted to make submissions that as the vehicle was registered on 18.10.2022, even if the tax was paid/ vehicle was purchased on 13.10.2022, the petitioner is entitled to the refund.
The Court observed,
A perusal of the above would reveal that the conditions enumerated for the purpose of exemption are that the electric vehicle must have been purchased and registered in the State of UP from the date of notification of the Policy, 2022 dated 14.10.2022.
Admittedly, the vehicle in question has been purchased by the petitioner prior to the date of Policy, 2022, i.e 13.10.2022 and tax itself has been paid as applicable on the said date and, therefore, it cannot be said that under the said Policy/Notification, the petitioner was entitled to the exemption as provided. Only on account of the fact that the vehicle was registered on 18.10.2022, i.e after the date as indicated in the amendment, i.e 14.10.2022, the petitioner cannot seek the refund from the respondents as the tax was paid prior to the date of the said Policy.
“It has been laid down by the Supreme Court in Star Industries V Commissioner of Customs (Imports), Raigad : (2016) 2 SCC 362 that the eligibility criteria laid down for exemption notification is required to be construed strictly.
In that view of the matter, no case for issuing directions for refund, as prayed for, is made out,” the Court further observed while dismissing the petition.
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