GYAN DEO SHARMA Vs. STATE OF U P

JUDGEMENT

(1.) The petitioners operate stage carriage within the jurisdiction of the Passenger Tax Officer, Aligarh. They agreed to pay Passenger Tax on lump sum basis as prescribed by the Uttar Pradesh Motor Gadi (Yatri Kar) Adhiniyam, 1962 and its Rules. By U.P. Taxation Laws (Amendment) Act, 1972 (U.P. Act No. 11 of 1972), an additional tax was levied on every passenger at the rate of 10 paisa on each fare provided the fare was not less than one rupee.

(2.) The petitioner say that they paid this additional tax on way-bill basis, namely calculating at the rate of 10 Paisa per fare per journey. Their case is that they never entered into any agreement with the respondents to pay the additional tax on lump sum basis.

(3.) On 17th April, 1974, the State Government issued a notification increasing the lump sum amount by 25 per cent. The same day, the Government issued another notification whereby sub-rule (4-A) was added to Rule 5 of the Rules. This sub-rule provided that the lump sum payable in respect of the additional tax shall be calculated in accordance with the formula given there in and the amount so determined shall be added to the amount of the lump sum already payable. It seems that the Passenger Tax Officer made demands on the petitioners to pay additional amount on the basis that they were paying additional tax on lump sum basis, which hurt the petitioners, who have come to this Court. During the pendency of the writ petition, the State Government issued another notification on 16th June, 1975. By this notification, the pre-existing sub-rule (4-A) of the Rule 5 was repealed and re-enacted. The re-enacted sub-rule (4-A) provides that the lump sum payable in respect of additional tax under sub-S. (3) of S. 3 of the Act shall be 25 per cent of the amount payable under sub-rule (3) and this amount shall also be payable along with the lump sum amount of the tax under sub-rule (3).