SIDHU ROADLINES REGD. Vs. THE STATE OF PUNJAB

JUDGEMENT

(1.) THE petitioners, who run buses under the stage carriage Permits granted to them, have filed this petition praying for the issuance of a writ in the nature of certiorari declaring Sections 3F, 4A, 5A, 7A, 7B and 7C of the Punjab Motor Vehicles Taxation Act, 1924 (for short the Motor Vehicles Act), as incorporated by the Punjab Act No. 22 of 1993, imposing special Road Tax as ultra-vires the Constitution of India. They also seek a direction to the respondents to refund the special Road Tax already charged from the petitioners and a further direction to not to charge the same in future also.

(2.) BEFORE adverting to the controversy raised in this petition, it is necessary to notice the background under which the impugned amendment had been brought about in the Motor Vehicles Act.

(3.) THE State Government had also levied tax on passengers under the provisions of the Punjab Passengers and Goods Taxation Act, 1952 (for short 'the Passengers Tax Act') The Passenger Tax was imposed at the rate of 45% of the fare as fixed by the State Government from time to time. This tax was collected by the bus operators from the passengers actually travelling in their buses and the mode of payment to the Government was by affixation of adhesive stamps drawn from the Government treasury. However, there was an option given to the bus operators to pay the Passenger Tax either in the manner as aforesaid by affixing the adhesive stamps or in lump sum as per the mode of calculation prescribed under the Rules. This option was taken away by the Punjab Passengers and Goods Taxation Ordinance, 1992 (Punjab Ordinance No. 3 of 1992), and the bus operators were required to pay passenger tax on lump sum basis calculated on the basis 65% average occupancy. In other words, the option of the bus operators to pay the Passenger Tax on the basis of actual collection from the passengers travelling in their buses was taken away and they were required to pay the tax on lump sum basis irrespective of the number of passengers actually travelling in their buses.