Division Bench Overrules Single Judge's Order, Validates Seizure of Mercedes-Benz AMG G63 by State Authorities
In a significant decision, the Karnataka High Court has overturned a prior order by a Single Judge, affirming the cancellation of a Mercedes-Benz AMG G63's registration that was obtained through fabricated documents. The Division Bench, comprising Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha, ruled that the seizure of the vehicle by the State authorities was within statutory authority.
The case revolved around a high-end vehicle whose registration was allegedly manipulated with false documents, resulting in significant tax evasion. The vehicle, initially purchased by Mr. Nihal Ahmed for approximately Rs. 1.97 crore, was later registered fraudulently in Himachal Pradesh, and then in Karnataka under incorrect details, leading to a reduced lifetime tax payment of Rs. 12.69 lakh instead of the appropriate Rs. 78.31 lakh.
The State of Karnataka, represented by Principal Government Advocate Sri K.S. Harish, argued that the registration was obtained using falsified documents and that a special squad had seized the vehicle under statutory authority. The High Court agreed, noting the absence of genuine sale documents and the confirmation by Mercedes-Benz that they did not issue the alleged sale certificates.
The court also acknowledged the procedural correctness of the investigation and seizure under the Karnataka Motor Vehicles Taxation Act, 1957, and related rules. It rejected the Single Judge's view that the seizure was unauthorized, emphasizing that the officer involved had the necessary statutory authority.
Furthermore, the judgment highlighted that the cancellation of registration during the writ petition's pendency was not an attempt to undermine court proceedings, as no stay order had been issued. The respondent, Neeraj Kumar Sharma, represented by Advocate Sri H. Pavan Chandra Shetty, failed to substantiate claims of being a bona fide purchaser.
With this ruling, the High Court has reinforced the necessity of adhering to statutory provisions and has sent a strong message against the evasion of taxes through fraudulent means.
Bottom line:-
High Court sets aside the Single Judge's order, reinstating the cancellation of vehicle registration obtained via fabricated documents and endorses the seizure of the vehicle as within statutory authority.
Statutory provision(s): Motor Vehicles Act, 1988 Section 55(5), Karnataka Motor Vehicles Taxation Act, 1957 Section 11A, Rule 27A, Indian Penal Code, 1860 Sections 406, 420, 504, 34, 417, 418, 463, 464, 468, 471, 482, 120B.
State of Karnataka v. Neeraj Kumar Sharma, (Karnataka)(DB) : Law Finder Doc id # 2949452
