Tamil Nadu can levy tax on vehicles with all-India tourist permit

Justice N Anand Venkatesh issued the direction on hearing a petition by S Thirumoorthy and P Tamilsevi, owners of buses registered in Nagaland and Puducherry respectively. The petitioners submitted that their buses were detained in Cuddalore on charges of permit breach and levied tax though they have all-India tourist permit.

Additional Advocate General Haja Nazurudeen submitted that the petitioners were issued only a permit under the All India Tourist Vehicles (Authorisation or Permit) Rules, 2021, which does not entitle them to ply the vehicle without paying tax in Tamil Nadu.

After the hearings, the judge said the All-India Tourist Vehicles (Authorisation or Permit) Rules could not prevent states from collecting vehicle tax.

“The 2021 Rules cannot take away the exclusive power of the State to impose tax covered under Entries 56 and 57 of List II of the Seventh Schedule of Constitution of India,” the judge said and added that the authorisation certificate itself made it clear that it was valid in the states mentioned, subject to payment of taxes.