Installment payment of motor vehicle tax allowed, with vehicle release on first payment and penalty left for appeal

The petitioner was allowed to clear motor vehicle tax arrears in six instalments, with the vehicle to be released after payment of the first instalment. The Court protected the petitioner from recovery action so long as the instalments were paid within time. The penalty order was not finally decided and remained open to challenge before the appellate authority under Section 18 of the U.P. Motor Vehicle Taxation Act, 1997.

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Issues: Whether the petitioner was entitled to pay the tax arrears in installments and obtain release of the vehicle, while leaving the penalty order open to challenge in appeal.

Analysis: The petitioner sought permission to clear the tax amount in easy installments. The State raised no objection to installment payment of the tax amount, and the Court accordingly fixed a payment schedule in six installments. The Court also recorded that, as regards the penalty, the petitioner was at liberty to avail the appellate remedy under Section 18 of the U.P. Motor Vehicle Taxation Act, 1997 before the appropriate authority. The order further directed release of the vehicle upon payment of the first installment and protected the petitioner from recovery action so long as the installments were paid within time.

Conclusion: The petitioner was permitted to pay the tax dues in installments and secured release of the vehicle on compliance, while the penalty issue was left open to be pursued in appeal.

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