Retrospective token tax clarification cannot reopen completed vehicle sales or impose a fresh GST-linked burden on dealers.

Token tax liability was treated as resting on the registered owner or person in possession of the vehicle, while dealers under the revised regime merely collected and remitted the amount through the portal. Where authorities had already accepted token tax computed on vehicle price excluding GST and issued registration certificates on that basis, a later clarification requiring computation on the aggregate cost including GST could not be applied retrospectively. A clarification issued against an earlier notification cannot reopen completed transactions or fasten a new burden for a past period. The demand for differential token tax for the earlier period was therefore invalid and set aside.

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Issues: Whether the clarification issued by the Transport Department could be applied retrospectively so as to require dealers to deposit differential token tax on the GST component for vehicles sold before the clarification.

Analysis: The statutory scheme placed the liability to pay token tax on the registered owner or person in possession of the vehicle, not on the selling dealer. Under the revised tax regime, dealers only collected and remitted the amount from buyers through the portal. The authorities had initially accepted token tax calculated on the vehicle price excluding GST, and registration certificates were issued on that basis. The later clarification that token tax was to be computed on the aggregate cost including GST introduced a new burden and could not be used to reopen completed transactions for the earlier period. A clarification issued against a notification cannot be given retrospective effect to fasten liability for a past period.

Conclusion: The demand for differential token tax for the earlier period was invalid and was set aside.

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