Permanent Lok Adalats Have No Jurisdiction On Matters Relating To Imposition Or Rate Of Tax: Rajasthan High Court

The Rajasthan High Court held that merely because the transport vehicle for carriage of passengers was mentioned in the definition u/s 22A(b) of the Legal Services Authority Act, 1987 (“Act”), Permanent Lok Adalat (“PLA”) had no jurisdiction to entertain an application regarding imposition of tax or the rate of imposition of tax in a particular matter.

The division bench of Justice Vinit Kumar Mathur and Justice Anuroop Singhi observed that rate of imposition of tax by the Transport Department did not fall under the category of “Public Utility Services” under Section 22A(b) of the Act, and hence, at what rate the tax will be imposed on a particular vehicle could not be brought within that category.

Section 22 of the Act provides for the jurisdiction of PLAs over disputes involving public utility services. Section 22A(b) of the Act lays down the definition of “public utility services”.

The Court was hearing an appeal filed by the District Transport Officer against an order of a PLA in which an application filed by the respondent challenging the rate at which tax was imposed on vehicle registration was accepted.

The respondent had purchased certain vehicles in an auction proceedings, and when he applied for registration of these vehicles, appellant department issued demand notice for deposition of tax on registration.

This notice was challenged by the respondent before the PLA seeking exemption from the rate of tax imposed on the vehicles. This application was accepted by the PLA. This order was challenged before the Court.

The appellant department argued that the matter pertained to levy of tax assessable on the vehicles purchased in auction, which did not fall within Section 22A(b) of the Act and hence PLA had no jurisdiction over the matter.

Accepting the argument put forth by the appellant department, and perusing the relevant section, the Court held that, “determination and levy of tax by the State Government cannot be considered as one of the services enshrined under Public Utility Services and, therefore, does not fall under the scope of Section 22 A (b) of the Act of 1987”.

“Merely because transport vehicle for the carriage of passengers or goods by air, road or water has been mentioned in the definition of Section 22A(b) of the Act of 1987, it will not bring the subject matter of imposition of tax within the jurisdiction of Permanent Lok Adalat for adjudication.”

Accordingly, the subject matter was opined to be outside the jurisdiction of PLA. The appeal was allowed, setting aside the order.

Title: District Transport Officer, Haumangarh v Banwarilal & Anr.

Citation: 2025 LiveLaw (Raj) 271

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