Electric Vehicle purchased outside Uttar Pradesh not eligible for tax exemption

Electric Vehicle to be eligible for tax exemption in Uttar Pradesh must fulfil twin conditions of both purchase and registration of vehicle in Uttar Pradesh 

In a recent judgment Allahabad High Court has held that in order to be eligible for tax exemption to electric vehicles, twin conditions of both purchase and registration of vehicle in Uttar Pradesh must be fulfilled.

ABCAUS Case Law Citation:
4556 (2025) (05) abcaus.in HC

In the instant case, a writ petition had been filed by the petitioner seeking a direction to the State and UPSRTC to refund the amount of road tax to the petitioner in respect to the hybrid vehicle purchased by her.

It was submitted that the petitioner had purchased a hybrid vehicle and got it registered with the State of Uttar Pradesh, however, despite exemption, vide notification dated 02.03.2023, granted to the extent of 100% of road tax, the said tax had been recovered and, therefore, the respondents be directed to refund the amount of tax.

The Standing Counsel representing State, referring to the tax invoice of the vehicle purchased by the Petitioner submitted that the vehicle in question had been purchased from Gurugram and the notification, inter alia, requires that both the purchase and registration of vehicle should be in Uttar Pradesh and as the vehicle had not been purchased in Uttar Pradesh, the exemption under the notification dated 02.03.2023 is not available.

The Hon’ble High Court observed that the said invoice clearly indicated that the vehicle in question had been purchased from one dealer at Gurugram. However, the requisite notification dated 02.03.2023, inter alia, provides that the motor vehicles shall be given 100 percent exemption of tax for Electric Vehicles (EV) purchased and registered in Uttar Pradesh.

The Hon’ble High Court noted that perusal of the above provision of the exemption notification reveals that twin conditions for the purpose of grant of exemption are required to exist, i.e., purchase and registration of vehicle in Uttar Pradesh.

The Hon’ble High Court held that admittedly, the vehicle had not been purchased from Uttar Pradesh and consequently, the claim made for exemption and refund by the petitioner cannot be countenanced.

Accordingly, the Petition was dismissed

Download Full Judgment Click Here >>

• Payment of imprest whether a transfer within the meaning of section 269ST
• CA Misconduct – Order quashed as judgment not passed by same members who heard arguments.
• Deceased homemaker can not be considered as dependant for award of compensation under MV Act – SC
• CIT notice u/s 263 quashed as AO rightly took DVO value of property as actual sale price
• Extension of timeline for implementation of Ship To GSTIN & Voluntary Closure of E-Way Bill functionalities