In a significant ruling, the Madhya Pradesh High Court has declared that Gram Panchayats, the elected village governing bodies, do not have the authority to impose taxes on motor vehicles. This decision came after the court dismissed a petition filed by Hargarh Gram Panchayat in Jabalpur district, with the order being made public on Tuesday.
Justice Vishal Dhagat clarified the limits of Gram Panchayats’ powers in his ruling, stating, “All vehicles driven by motors fall within the definition of ‘motor vehicles’, and a Gram Panchayat does not have any power to impose tax on motor vehicles.” This statement came as part of the court’s dismissal of the Panchayat’s challenge against a letter from the state revenue department. The letter had objected to the Panchayat’s collection of commercial taxes from vehicles operating within its jurisdiction.
The case highlighted the Gram Panchayat of Hargarh, an industrial area, attempting to enforce local taxation on motor vehicles, which was met with resistance from the state government. During the legal proceedings, the state government’s lawyer challenged the maintainability of the Panchayat’s petition, pointing out procedural deficiencies. Specifically, the government noted that no resolution was properly passed in accordance with the law to authorize the sarpanch to file the petition, as it lacked the necessary names and signatures of Panchayat members.
