HC directive on luxury buses’

Gujarat high court has directed the state government to dispose off the pending applications for the refund of the advance tax on the non-use of luxury buses within seven days, after the completion of the month.

The division bench of justice B.C. Patel and justice D.A. Mehta issued the direction following a public interest litigation that challenged the section 3-A of the Mumbai Motor Vehicles Act and the amendment in the Government Motor Vehicle Tax Act.

According to the petition, the owners of the luxury buses are required to pay tax for plying the buses on the roads for commercial purposes. According to the law, if the luxury buses are not in commercial use, the owners are exempted from paying any tax for that period.

However, through an amendment, the government introduced the scheme of advance payment, under which the tax by the luxury bus owners was to be paid before hand.

According to the petitioners, the amendment was unfair since it left no scope for the owners to save on the money expended in payment of advance tax, even if their buses were not in commercial use. The court admitted the petition and directed that the amount of advance tax in cases of non-use must be refunded within seven days of the completion of the month. The court also said that if the application is not disposed with seven days, then the government will carry forward the amount to the subsequent month.

Republished from Asian Age