after repossesion, liability of tax cannot be put on previous owner

The vehicle owner had purchased a Tata Ace Magic vehicle by availing loan and was paying periodic instalment as well. However, due to unfortunate losses he suffered in his travelling business, the owner failed to pay his instalments in time. As a result, the owner had to surrender his vehicle to the financer, who in turn sold the vehicle to someone else. As the owner failed inform about surrender of vehicle to Transport Department, tax demand was raised against him. The Allahabad High Court in AIROnline 2023 ALL 80 has held that after the financer take the possession of vehicle for default of the owner, liability of tax cannot be put on petitioner. The owner directed to file an objection intimating department that possession of the vehicle was taken by the financer so that tax liability can be re-determined.