Karnataka   

Financier, vehicle owner responsible for paying MV tax

BANGALORE: In a decision that is likely to affect thousands of vehicle users in the State, the Karnataka High Court on Friday held that both financiers and owners of vehicles are jointly liable to pay motor vehicle (MV) tax.

A Division Bench comprising Justice Chidanand Ullal and Justice Nagmohan Das passed the order while allowing appeals by the State Government against a single judge order. The single judge had said that only owners of vehicles and not financiers are responsible for paying MV Tax.

The case pertained to levy of MV tax on both the financiers (Apple Credit Corporation) and P. Yuvaraj, a resident of Bangalore. The State said Apple had financed the purchase of a tourist omni-bus by Yuvaraj. When Yuvaraj failed to repay the loan, Apple Credit seized the vehicle. Yuvaraj refused to pay the MV Tax, saying that the vehicle was with the financier.

The Regional Transport Officer (RTO), Bangalore West, asked both the financier and the vehicle owner (Yuvaraj) to pay the MV tax. This was challenged in the High Court and a single judge had said that only the owner would have to pay the tax and not the financier.

The Government advocate, C.S. Patil, contended that both the vehicle owner and financier are liable to pay the MV Tax.

The Division Bench agreed with the contention of the State Government and said a vehicle owner would have to pay MV tax as long as his name was shown in the RC book.

It said both the owner and financier are jointly and severally liable to pay the tax.

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