The Rajasthan High Court recently overturned an order by the Permanent Lok Adalat (PLA), Hanumangarh, in a dispute over vehicle tax assessment. The case involved Banwarilal, who purchased a Mahindra Jeep and Tata Nano in a 2017 auction and contested the transport department’s tax demand. The PLA had directed the department to assess taxes based on 2012 rates, prompting the state to challenge its jurisdiction.
The High Court emphasized that the PLA’s authority under Section 22A(b) of the Legal Services Authorities Act, 1987, is limited to "public utility services," such as transport, postal, or power supply-not tax imposition. Justices Vinit Kumar Mathur and Anuroop Singhi noted:
"Determination and levy of tax by the State Government cannot be considered a public utility service... PLA committed an error by entertaining the application."
The court clarified that while transport services fall under public utilities, tax assessment remains outside the PLA’s purview. The 2018 order was quashed, reinforcing jurisdictional boundaries.
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Key Takeaways
This judgment underscores that tax disputes must be addressed through appropriate judicial or administrative channels, not Lok Adalats. For taxpayers, it highlights the importance of understanding jurisdictional limits when contesting demands. The ruling also preserves the state’s authority to enforce tax laws without interference from alternative dispute forums.
Case Title: District Transport Officer, Hanumangarh vs. Banwarilal & Anr.
Case No.: D.B. Civil Writ Petition No. 9/2019
