The Madras High Court has ruled that no action should be taken against long-distance private buses registered in other states, operating in Tamil Nadu. This decision came from a bench, comprising Acting Chief Justice D Krishnakumar and Justice K Kumaresh Babu, in response to a petition filed by a private bus company challenging a show-cause notice issued by the Motor Vehicles Department.
The petition highlighted that, having obtained an All India Permit, the bus company is authorised to operate across the entire country. Therefore, it argued that requiring them to pay a separate tax for operating services in Tamil Nadu is unjust.
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“Buses registered in other states are not eligible for exemption if they operate solely within Tamil Nadu. The All India Permit is applicable only for services intended to transport passengers between states,” the court stated while hearing the petition. The court instructed the Transport Department to submit a report by Monday and decided that no external interference should occur until then.
The court asked the Transport Department to submit the report by Monday. It was also decided that there should be no external interference in the matter until then.
In Pondicherry and Kerala, private buses are required to pay a quarterly road tax ranging from Rs 30,000 to Rs 44,000. In contrast, in Nagaland and Arunachal Pradesh, the annual road tax is significantly lower at Rs 18,000. Tamil Nadu imposes a much higher road tax of Rs 54,000 per month on these buses. Additionally, buses operating in Tamil Nadu must obtain a temporary permit each week, costing approximately Rs 1,000.
The petition also highlighted that bus owners often resort to registering their vehicles in Nagaland and other northeastern states to circumvent the high road tax imposed in Tamil Nadu.
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