The Goa Human Rights Commission has directed the transport department to ensure that vehicles purchased by personnel of the Indian Armed Forces through military canteens are taxed based on the actual discounted price paid, and not on the vehicle’s market price.
Case Background
- A serving officer, Jesus Furtado, purchased a Maruti Brezza in December 2024 through the Ministry of Defence at a discounted canteen price of ₹8.73 lakh.
- When registering the vehicle at the Margao RTO, he was charged taxes based on the market value of ₹9.45 lakh, instead of the concessional price he had paid.
- This discrepancy led him to file a complaint with the Human Rights Commission, seeking a refund of the excess tax collected.
Rights Commission’s Observation
- The discounted price is a special privilege granted by the Government of India to armed forces personnel.
- Taxes should be calculated strictly on the amount actually paid at the time of purchase from defence canteens, and not on market prices frozen in RTO computer systems.
- Charging additional tax amounts to unfair treatment of service personnel availing their rightful benefits.
RTO’s Stand
- The Regional Transport Office (RTO) Margao explained that the computerized system automatically calculates tax based on the market price of the vehicle as per the vehicle maker’s listing.
- Despite this, the Commission emphasized that such automated processes should not override the special exemptions granted to defence personnel.
Key Recommendation
The Goa Human Rights Commission has recommended that the transport department revise its procedures to ensure:
- Taxes are levied only on the actual discounted price paid at military canteens.
- No excess amount is collected from armed forces personnel.
- Refunds are issued where additional charges have already been collected.
Conclusion
This ruling reinforces the government’s commitment to extending privileges and benefits to serving and retired defence personnel, recognizing their service to the nation. By aligning taxation procedures with the concessional pricing policy, authorities can ensure fairness and uphold the rights of the armed forces community.
