Case Law Analysis
|Madhya Pradesh High Court
Section 16(3) M.P. Motoryan Karadhan Adhiniyam | Prior Tax Assessment Mandatory Before Vehicle Seizure; RC Seizure Only Permissible Under Section 207 MV Act : MP HC Jabalpur
The Madhya Pradesh High Court has ruled that seizing a vehicle for tax dues without a prior assessment order under Section 16(3) of the M.P. Motoryan Karadhan Adhiniyam, 1991 is illegal. Authorities may only seize the Registration Certificate under Section 207 of the Motor Vehicles Act, not the vehicle itself, reinforcing that procedural fairness trumps coercive recovery in transport taxation.