BH registration approved in Kerala, but state motor vehicle tax mandatory

The Kerala High Court held that vehicles with Bharat (BH) registration have to pay the motor vehicle tax as per the rates prevailing in the State where the registration is sought. The Court held that the Central Government does not have the power to prescribe the rate of motor vehicle tax (road tax) for BH series vehicles, as motor vehicle tax is a subject falling within the domain of the States.

Justice DK Singh of a single bench delivered a crucial verdict in a series of writ petitions filed by vehicle owners who challenged the Kerala Motor Vehicle Department's decision to deny registration of their vehicles under the BH series unless the state's tax was paid.

What is BH registration?

The Bharat Series, introduced by the Union Ministry of Transport in 2021, allows vehicles to move across states without the need for re-registration. The BH registration is offered to Defense personnel, employees of the Central and State Governments, Central or State Public Sector Undertakings, and private sector organizations with offices in four or more States/Union Territories. According to Section 47 of the Motor Vehicles Act, a vehicle registered in one State must be re-registered in another if it remains there for over a year. However, the BH registration eliminates the need for re-registration for individuals who often move due to job transfers. Vehicles with this registration do not require a new registration mark when the owner relocates to another State.

Kerala had not been allowing BH registration, citing reasons such as the state’s authority to determine taxes. The state government argued that the central rules contradict the state’s powers in this regard.

Following this, the Single Bench directed the registration of the petitioners' vehicles under BH series but subject to the payment of the tax as per Kerala Motor Vehicle Taxation Act 1976. Special Government Pleader Muhammed Rafiq appeared for the state in the case