2% Additional Tax For Acquiring 'Second Vehicle' Can't Be Levied When First Vehicle Has Already Been Sold: Telangana High Court

The Telangana High Court ruled that an additional tax for acquiring a second vehicle cannot be levied if the first vehicle is sold before the permanent registration of the new vehicle. The case involved a dispute regarding the application of a tax provision for acquiring a second vehicle while the first vehicle was sold but not yet permanently deregistered. The Court held that tax provisions should not be applied in this scenario, as the prior vehicle was no longer in the owner’s possession, thus protecting the consumer from unnecessary financial burden. This ruling provides clarity on vehicle tax law and the procedure for registering new vehicles.