BH Registered Vehicles Subject To Motor Vehicle Tax As Per State Law; Centre Can't Prescribe Tax Rates : Kerala High Court

The Kerala High Court ruled that registered vehicles in the state are subject to motor vehicle tax as per the state's law, and the central government cannot prescribe tax rates for these vehicles. This ruling clarified the authority of state governments in determining tax rates for vehicles registered within their jurisdiction. The case stemmed from a dispute where the central government’s intervention in setting tax rates was challenged. The court upheld the state’s prerogative in deciding the applicable tax, providing clarity on the division of powers between state and central authorities in taxation matters.