Pradip Bhandari vs. Ut Of Chandigarhthrough Secretary Department Of He Nd Transrt

Held

The Court allowed the writ petition. It held that the petitioner was entitled to the benefit of the 50% tax rebate on the strong hybrid car, calculated on the basis of the Ex-showroom price as clarified by the circular/notification dated 21.10.2024. The Court reasoned that the definition of Ex-showroom price in the notification dated 07.12.2023, as clarified by the subsequent notification dated 21.10.2024, should be applied. This definition considers the sale amount uploaded by the manufacturer on the Homologation portal, excluding GST and Cess, and any discounts. The Court directed the respondents to refund the excess tax amount paid by the petitioner within one week. Furthermore, if the refund was not processed within that period, the petitioner would be entitled to interest at 9% per annum for the delay. The Court noted that the tax was deposited by the petitioner only in June 2024 and therefore did not grant any interest on the refund amount itself, but only on potential future delays in refund.

Facts

The petitioner filed a writ petition seeking a refund of 50% of the Motor Vehicle Tax collected on a strong hybrid car, along with interest. The petitioner contended that a notification dated 21.10.2024, read with a circular dated 07.12.2023, allowed for a 50% tax rebate on strong hybrid cars with an Ex-showroom price below Rs. 20 Lakhs. The respondents, however, did not accept the petitioner's calculation of the Ex-showroom price, including other amounts in addition to the manufacturer's price. The respondents issued a clarification defining the Ex-showroom price as mentioned in the notification dated 07.12.2023, to be the sum total of the sale amount of the vehicle as uploaded on the Homologation portal by the manufacturer, excluding GST and Cess, and any tax deducted at source or discounts. The petitioner had deposited the tax in June 2024.

Key Issues

1. Whether the petitioner is entitled to a refund of 50% of the Motor Vehicle Tax collected on a strong hybrid car, based on the Ex-showroom price as defined in the notification dated 07.12.2023 and clarified by the notification dated 21.10.2024. Petitioner's argument: The petitioner argued that the Ex-showroom price should be calculated as per the definition provided in the notification dated 07.12.2023, which was clarified by the notification dated 21.10.2024. This definition excludes GST, Cess, and discounts, and is based on the manufacturer's uploaded sale amount. The petitioner claimed the tax deposited was in excess of the 50% rebate allowed. Revenue/State's argument: The respondents argued that the Ex-showroom price should be interpreted in a manner that included amounts beyond the manufacturer's base price, thus not accepting the petitioner's calculation for the 50% rebate. They relied on their clarification circular dated 21.10.2024, which defined the Ex-showroom price as per the notification dated 07.12.2023, to be the sale amount uploaded on the Homologation portal by the manufacturer, excluding GST and Cess, and any tax deducted at source or discounts.