R SENTHIL BABU Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) Leave granted.

(2.) The short question which arises for determination in these Civil Appeals concerns challenge to the Constitutional validity of Tamil Nadu Motor Vehicles Taxation (Amendment) Act, 1998, by which initially the rate of tax in respect of contract carriage stood increased from Rs. 1500/- per seat per quarter to Rs. 2000/- per seat per quarter, and subsequently the said rate stood enhanced from Rs. 2000/- per seat per quarter to Rs. 3000/- per seat per quarter vide Notification No. 1184 dated 30.11.2001 with effect from 1st December 2001.

(3.) The basis of the challenge rests on the uneven burden placed on the owners of contract carriage vis-a-vis stage carriage. Broadly it is contended that there is no rational in the imposition of the levy, that tax is imposed indiscriminately, that it is levied to cross-subsidize stage carriage and that uneven burden has been placed on the owners of contract carriage which has no nexus with the services or amenities provided.