The Chandigarh State Disputes Redressal Commission has dismissed an appeal filed by the Registering and Licensing Authority (RLA) and upheld the order passed by the district commission directing the authority to pay a compensation ₹25,000 and refund the wrongly charged road tax.
In a complaint filed before the commission, Chandigarh resident PS Bhinder said he booked a hybrid car on December 5, 2023, from M/s Lally Automobiles (India) Private Limited, Chandigarh, for ₹20.6 lakh.
Bhinder said he was told by the dealer that there was no road tax on hybrid vehicles and for that reason he opted for a higher model, keeping in view the tax rebate. When he visited the RLA office for registration of the vehicle, he was informed that he had to pay road tax on the car even if it was hybrid. The RLA officials added that 50% road tax was being levied on hybrid cars costing up to ₹20 lakh and full road tax on hybrid cars above ₹20 lakh in terms of a new notification dated December 8, 2023.
The dealer had stated that they had not received any order from the competent authorities with regard to the new rule. Bhinder procured the copy of the said notification which was digitally signed at 3.07 pm on December 8, 2023, and only thereafter the said notification would come into force. He argued he had purchased the vehicle much prior to issuance of notification.
{{/usCountry}}The dealer had stated that they had not received any order from the competent authorities with regard to the new rule. Bhinder procured the copy of the said notification which was digitally signed at 3.07 pm on December 8, 2023, and only thereafter the said notification would come into force. He argued he had purchased the vehicle much prior to issuance of notification.
{{/usCountry}}On the other hand the dealer said they had no role in the matter. The RLA in the reply denied the charges and said that complainant had purchased the vehicle on December 8, 2023.
After hearing of the arguments the state commission headed by justice Raj Shekhar Attri said, “In this case the complainant purchased the vehicle at 1.07 pm, much prior to the issuance of the notification. Therefore, the complainant is not liable to pay any road tax on his hybrid car.”
“It has been established that the notification in question stood published in the official gazette on December 8, 2023 at 15:07:21 hours that is after the date and time of purchase of the said vehicle on the day at 13:02:41 and also issuance of its temporary certification of registration was at 13:07:20, therefore, the said notification will be operative prospectively and not retrospectively. “Thus the appeal of the RLA stands dismissed,” said the state commission.
The commission directed the RLA to refund the road tax, amounting to ₹ 1,42,588, to the complainant along with 9% interest and also pay ₹25,000 as compensation for causing mental agony.