Karnataka High Court Allows Financier's Petition Against Tax Demand for Seized Vehicle — Hypothecatee Not Liable for Tax During Seizure Period Under Karnataka Motor Vehicles Taxation Act, 1957. The court held that a financier who seizes a vehicle and declares non-use in Form-30 is not liable for motor vehicle tax as the vehicle is not used on public roads....
The petitioner, a partnership firm, financed the purchase of a bus by respondent no.3, with the vehicle hypothecated to secure the loan. The hypothecation was endorsed in the Registration Certificate....
