Mahindra And Mahindra Financial ... vs The State Of Uttar Pradesh

The Supreme Court addressed the liability of a financier-in-possession of a transport vehicle to pay tax under the U.P. Motor Vehicles Taxation Act, 1997. The court upheld the High Court's decision that the financier, Mahindra and Mahindra Financial Services Ltd., is liable for the tax due to its possession of the vehicle after the borrower defaulted on the loan. The ruling clarifies the responsibilities of financiers regarding tax obligations when they take possession of vehicles due to loan defaults.