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2020 (10) TMI 1129 - HC - GSTValuation - Sale of vehicles - Demand of differential amount of token tax/fees of the vehicles sold - period from 01.08.2019 to 26.11.2019 - liability of seller to pay such amount - HELD THAT:- As per Section 4 of the J&K Motor Vehicles Taxation Act, 1957, the liability to pay the tax is on the registered owner or the person who has the possession of the vehicle and not that of the seller of the vehicle. The registration of the vehicle or payment of token tax was not rejected on the Portal as for all the vehicles registration certificates were issued. All of a sudden, the petitioner received a communication dated 22.06.2020, from the Transport Department directing it to deposit differential amount of token tax of the vehicles sold after issuance of SRO 492 dated 01.08.2019. It was the difference of tax on the amount of GST levied on sale of vehicle, on which the token tax was not charged earlier. It was with reference to the clarification issued by the Transport Department on 26.11.2019, which provided that the token tax/ road tax is to be levied on the aggregate cost of the vehicle which includes basic cost plus GST - It could not be disputed that the liability to pay the aforesaid tax is on the buyer of the vehicle who has to utilize the same on the public roads. The fault cannot be attributed to the petitioner for the reason that even the invoice was to be generated from the Vahaan Portal as per the Government Order dated 12.10.2017. Any clarification issued by the department to a notification cannot have retrospective effect - the department issued the clarification on 26.11.2019. It is not in dispute that after the issuance of the aforesaid clarification the token tax is being calculated on the value of the vehicle including the amount of GST. The impugned notices directing the petitioner to deposit the differential amount of tax for the period from 03.08.2019 to 26.11.2019, are set aside - petition allowed.
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