The Karnataka High Court recently delivered a verdict upholding the inclusion of private sector employees working in companies with offices in four or more states under the Bharat (BH) series vehicle registration.
The court dismissed an appeal by the state government against a previous single-bench decision that directed the Transport Commissioner to register vehicles of such employees under the BH-Series.
The BH-Series registration mark was introduced by the Ministry of Road Transport and Highways in August 2021, aiming to simplify vehicle registration for individuals relocating from one state to another. This facility was initially made available to defence personnel, employees of the Central Government, State Government, Central/State Government Public Sector Undertakings, and private sector companies or organizations with offices in multiple states or Union Territories.
However, in December 2021, the Karnataka transport department issued a notification that excluded private sector employees from the BH-Series registration. This decision faced a legal challenge by Ranjith K P from Fortinet Technologies India and Shalini T from Accenture Solutions, who argued that the BH-Series was intended to streamline the cumbersome process of obtaining a No Objection Certificate (NOC) from one state, applying for a new registration mark in another state, and seeking a tax refund from the previous state of transfer.
The single-bench ruling by Justice CM Poonacha supported the petitioners' arguments and directed the state government to include new non-transport vehicles for private sector employees under the BH-Series.
In response, the Karnataka transport department contended that private company employees often work on a contract basis, frequently switching between companies, making it challenging to collect taxes promptly due to the lack of permanent employment guarantees.
The division bench, comprising Chief Justice Prasanna B Varale and Justice MG S Kamal, ultimately upheld the single-bench decision, bringing relief to lakhs of private sector employees, especially those working in Bengaluru.
A Union Ministry of Road Transport and Highways official highlighted the benefits of the BH-Series registration, which requires vehicle owners to pay taxes every two years or in multiples to the state where the vehicle is located during that period. The taxes are set at 25% higher than the uniform rate, aiming to facilitate seamless vehicle transfers while reducing the burden on Regional Transport Offices (RTOs) dealing with such transfers.
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