- (1.) Section 12 of the Orissa Motor Vehicles Taxation Act, 1975 reads thus: "12.Liability of successor to pay arrears. (1) If the tax leviable in respect of any motor vehicle remains unpaid by any person for payment thereof and such person before having paid the tax has transferred the ownership of such vehicle or has ceased to be in possession or control of such vehicle, the person to whom the ownership of the vehicle has been transferred or the person who has possession or control of such vehicle shall be liable to pay the said tax to the taxing officer. (2) Nothing contained in this section shall be deemed to affect the liability of the person who has transferred the ownership has ceased to be in possession or control of such vehicle, for payment of the said tax. "in this regard, the High Court said: "Section 14 envisages that any tax levied under this Act shall be deemed to be a first charge on the vehicle to which it relates. Considering all the aspects, we dispose of the writ petition permitting the regional transport authorities to take effective step to realise the arrear tax first from the erstwhile owner, sri Partha Sarthi Bhuyan and if the realisation is not possible, it is open to the authorities to proceed against the vehicle concerned and the petitioner will have to square up the liability as it remains due at the material point of time. With such observation and direction, we dispose of the matter. "
(2.) The state's taxation authorities are in appeal by special leave.
(3.) Section 12 says that if tax in respect of a motor vehicle remains unpaid by its owner and the owner transfers the vehicle or ceases to be in its possession or control, the transferee or the person who has possession or control shall be liable to pay the tax. It also says that this does not affect the liability of the original owner in regard to the tax.;