Court Denies Taxing Power to Gram Panchayats on Motor Vehicles

The Madhya Pradesh High Court ruled that Gram Panchayats do not have the authority to levy taxes on motor vehicles. The verdict came in response to a petition by Hargarh Gram Panchayat challenging the state revenue department's objection. The court emphasized the lack of legal authorization for the petition.

The Madhya Pradesh High Court has ruled that Gram Panchayats, the elected village bodies, do not have the authority to levy taxes on motor vehicles.

In an order issued on September 3, and made public on Tuesday, the court dismissed a petition from Hargarh Gram Panchayat in Jabalpur district regarding the matter. Justice Vishal Dhagat clarified that all motor-driven vehicles fall under the 'motor vehicles' category, and thus, Gram Panchayats have no power to impose taxes on them.

The Hargarh Gram Panchayat, located in an industrial area, had contested an objection from the state revenue department against its collection of commercial tax from vehicles within its domain. During the hearing, the state government argued that the petition was not maintainable as no legal resolution authorizing the sarpanch to file the petition was in place.

(With inputs from agencies.)