Owner Of Electric Vehicle Purchased Prior To October 14, 2022 Can't Seek Refund Of Tax Citing Subsequent Exemption Notification: Allahabad HC
Kapil Dhyani
11 Nov 2024 5:30 PM IST
Image: ET
The Allahabad High Court has held that the owner of an electric vehicle which was purchased prior to October 14, 2022 cannot seek refund of tax citing a subsequent notification exempting the payment of One Time Tax.
Petitioner had sought refund of One Time Tax paid in respect of his Hybrid Vehicle purchased on October 13, 2022.
The relief was sought on the strength of a notification issued by the State providing tax exemption for electric vehicles purchased and registered from the date of notification of the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022 i.e. October 14, 2022.
Petitioner submitted that as the vehicle was registered on October 18, 2022, even if the vehicle was purchased a day prior to the Policy, the petitioner is entitled to refund.
State counsel however argued that the very language of the exemption notification requires both 'purchase and registration' of the vehicle from the date of notification i.e. October 14, 2022. It was argued that since Petitioner's vehicle was purchased prior to the said date, petitioner is not entitled to refund.
At the outset, the High Court observed 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.
“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,” it held.
Court added that only on account of the fact that the vehicle was registered on 18.10.2022, i.e. after the date as indicated in the exemption notification, i.e. 14.10.2022, the petitioner cannot seek refund.
It cited Star Industries V. Commissioner of Customs (Imports), Raigad (2016) whereby the Supreme Court has held that the eligibility criteria laid down for exemption notification is required to be construed strictly.
Accordingly, the plea was dismissed.
Appearance: Advocates Dhananjay Singh Yadav and Surendra Singh for Petitioner; ACSC Nimai Dass for Respondent
Case title: Ankur Vikram Singh Respondent v. State of UP
Case no.: WRIT TAX No. - 1869 of 2024
