Insurance acceptable as proof of BSIII two-wheeler sale date: Delhi High Court

The order, however, will only be applicable to 'non self-registering dealers' - those who can not make online payments of sales tax

By: | Updated: May 11, 2017 11:36 AM

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Delhi High Court has issued a new order into verification of the sale date of two-wheelers that are BSIII compliant. The court has said that the issuance receipt of the insurance will be accepted by the transport department as proof of the vehicles' sale date. It comes as a relief for two-wheeler dealerships who sold some units of BSIII vehicles before 31st March. The order, however, will only be applicable to 'non self-registering dealers' - those who can not make online payments of sales tax.

The Supreme Court had ordered a ban on sale and registration of vehicles that are not BSIV compliant post 31st March, which had led to two-wheeler dealers facing huge losses owing to massive BSIII stocks.

The direction comes after a number of dealers had moved the court, saying that the transport department had not been accepting documents for registration, when in fact they had made the sale before the deadline. About 1000 units of BSIII two-wheelers had been awaiting registration.

The court maintained that the transport department may go ahead with the registrations, provided that the dealers gave proof that the sale was made before 31st March, adding that it "may take into account the online proof of payment of insurance premium or issuance of policy prior to the date of March 31, 2017."

It also said if the above two conditions are not met, then the motor licensing officer, who would verify the date of sale, cannot merely rely on the sale invoice provided by the dealer but would have to consider the tax payment receipts issued by statutory or regulatory bodies.

The court also said the petitioner-dealers be allowed to present their vehicles for physical inspection till May 15. These directions, however, would be applicable on case-to -case basis and only to 'non-self registering dealers', the court clarified in its order.

The Environment Pollution (Prevention and Control) Authority (EPCA) had recommended this solution as the transport department had been facing problems with how to verify sale date of BSIII two-wheelers purportedly sold on or before 31st March.