A Division Bench of the Karnataka High Court on Friday upheld an earlier verdict of a single bench that had declared as “unconstitutional” the new law that compelled owners of non-Karnataka vehicles to pay lifetime tax if they use such vehicles in Karnataka beyond 30 days.

The Division Bench comprising Justice Jayant M. Patel and Justice B.V. Nagarathna passed the order while dismissing the State government’s appeal against the single bench’s March 11 verdict.

This order has reaffirmed the rights of the owners of non-Karnataka registered vehicles to use their vehicles in the State for 12 months without paying lifetime tax in Karnataka but such vehicles will have to be re-registered in Karnataka along with requisite lifetime tax if such vehicles are used beyond 12 months.

“The Explanation-2 to Section 3 of Karnataka Motor Vehicles Taxation Act, 1957 as inserted in KMVT (Amendment) Act, 2014 is unconstitutional and ultra vires,” the single judge bench had declared, while also quashing the notices issued by the Regional Transport Offices asking out-of-Karnataka vehicle owners to pay lifetime tax on their vehicles registered outside Karnataka.