Expired national permit authorisation cannot trigger further tax demand for surrender or tax clearance.

When a national permit's authorisation has expired and is not renewed, no authorisation tax can be demanded merely for surrender processing or tax clearance. The Madras HC followed prior decisions holding that, in the absence of a renewed authorisation or an application for it, the fee or tax claim is unsustainable. It also relied on a binding Transport Commissioner circular requiring acceptance of permit surrender without insisting on proof of tax payment once authorisation had expired. The impugned order was set aside, and the respondent was directed to consider the application for issuance of a tax clearance certificate.

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Issues: Whether authorization tax could be demanded and tax clearance withheld after the national permit had lapsed and the authorization was not renewed.

Analysis: The petitioner's vehicle had a national permit, but the authorization had not been renewed beyond the relevant date. The Court followed earlier decisions holding that where no application for authorization is made or the authorization is not renewed, no demand for authorization fee or tax can be sustained. It also noted that the Transport Commissioner's circular directed acceptance of surrender of permits without insisting on proof of payment of tax where authorization had expired, and that the circular remained binding on subordinate officers unless withdrawn or modified.

Conclusion: The demand for authorization tax was not sustainable. The impugned order was set aside and the respondent was directed to consider the petitioner's application for issuance of tax clearance certificate.

Ratio Decidendi: When authorization for a national permit has expired and is not renewed, and the governing circular does not require insistence on further tax payment, no authorization tax can be demanded merely for processing surrender or issuing tax clearance.

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