ARUNA A Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) In this batch of writ petitions, the petitioners initially questioned the constitutionality of the Andhra Pradesh Motor Vehicles Taxation (Amendment) Act, 1995 (for short "Amendment Act 23 of 1995") by which the levy and collection of life tax has been enhanced from 5 % to 7% on the cost of the vehicle on four wheelers which are used for personal purpose. After hearing this batch of writ petitions, when the Court pointed out that by Amendment Act 23/1995, the Legislature has only enhanced the rate of life tax from 5% to 7%, but the method of computing life tax on the basis of the unladen weight and value of the vehicle was introduced in case of four wheelers by Andhra Pradesh Motor Vehicles Taxation (Amendment) Act, 1992 (for short "Amendment Act 11 of 1992") and that Amendment Act 11 of 1992 was not challenged, some of the petitioners amended the prayers in the writ petitions so as to challenge the constitutionality of Amendment Act 11/1992 also.

(2.) Before dealing with the contentions raised by the petitioners in assailing the constitutionality of Amendment Act 11 of 1992 and Amendment Act 23 of 1995, it would be beneficial to briefly state the historical background of the law relating to Motor Vehicles Taxation in the State of Andhra Pradesh leading to the enactment of the Andhra Pradesh Motor Vehicles Taxation Act, 1963 (Act No.5 of 1963) for short 'the Act'. The modern State of Andhra Pradesh was formed by combining and integrating the Telugu speaking parts of erstwhile State of Hyderabad and the erstwhile State of Andhra. The State of Andhra itself was formed out of the telugu speaking areas by separating those areas from the erstwhile composite State of Madras. At the time of the formation of the State of Andhra, the Madras Motor Vehicles Taxation Act, 1931 was in force. In addition to these, the Madras Motor Vehicle's (Taxation of Passengers and Goods) Act, 1952 was also in force. The State of Hyderabad had also enacted a similar law, i.e., the Hyderabad Motor Vehicles Taxation Act, 1955. Consequent upon the creation of the new State of Andhra Pradesh the above named three Acts came to be called as (1) Andhra Pradesh (Andhra Area) Motor Vehicles Taxation Act, 1931, (2) Andhra Pradesh (Telangana Area) Motor Vehicles Taxation Act, 1955 and (3) Andhra Pradesh Motor Vehicles (Taxation of Passengers and Goods) Act, 1952.

(3.) The Andhra Pradesh Motor Vehicles (Taxation of Passengers and Goods) Act, 1952, which was initially named as Madras Motor Vehicles(Taxation of Passengers and Goods) Act, 1952, levied tax on all passengers, luggage and goods carried by stage carriages and on all goods transported by public carrier vehicles. This Act applied to the Andhra Area of the State of Andhra Pradesh and the transport operators of Telangana area were not required to pay any tax under this Act though the operators of the Telangana region were plying their vehicles in the Andhra area also. As far as the other two Motor Vehicles Taxation Acts are concerned, the State Acts were operating in Andhra area and Telangana area respectively. With a view to consolidate all these Acts, the Andhra Pradesh State Legislature enacted Andhra Pradesh Motor Vehicles Taxation Act, 1963. The Andhra Pradesh (Andhra Area) Motor Vehicles Taxation Act, 1931, Andhra Pradesh (Telangana Area) Motor Vehicles Taxation Act, 1955 and Andhra Pradesh Motor Vehicles (Taxation of Passengers and Goods) Act, 1952 were repealed under Section 18 of the Act. The Andhra Pradesh (Andhra Area) Motor Vehicles Taxation Act, 1931, the Andhra Pradesh (Telangana Area) Motor Vehicles Taxation Act, 1955 were enacted under Entry 57 of List II of the VII Schedule whereas Andhra Pradesh Motor Vehicles(Taxation of Passengers and Goods) Act, 1952 was enacted under Entry 56 of List II of the VII Schedule of the Constitution of India.