The Madhya Pradesh High Court has ruled that Gram Panchayats, which are elected village bodies, do not possess the authority to impose taxes on motor vehicles.

In an order issued on September 3, the Madhya Pradesh High Court dismissed a petition filed by Hargarh Gram Panchayat in Jabalpur district concerning the authority to tax motor vehicles.

The ruling, which was made available on Tuesday, clarified that all motor-driven vehicles fall under the category of 'motor vehicles,' and as such, Gram Panchayats lack the power to impose taxes on them, as stated by Justice Vishal Dhagat.

In an order dated September 3, the Madhya Pradesh High Court rejected a petition from Hargarh Gram Panchayat in Jabalpur district regarding the imposition of taxes on motor vehicles. The ruling, released on Tuesday, clarified that all vehicles powered by motors are categorized as 'motor vehicles,' and as such, Gram Panchayats do not have the authority to levy taxes on them, according to Justice Vishal Dhagat.

During the hearing, the state government challenged the petition's maintainability, arguing that no valid resolution had been passed authorizing the sarpanch to file the petition. The government lawyer pointed out that the resolution lacked the names and signatures of Panchayat members, rendering it legally insufficient.