ASSOCIATED TRADERS AND ENGINEERS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) The petitioners, three in number, have moved this Court for a writ or appropriate order under Article 226 of the Constitution. The object of the petition is to challenge the validity of the Punjab Passengers and Goods Taxation Act (Act No. XVI of 1952) and also of the Amending Act (Punjab Act No. XXI) of 1952 and of the rules framed under these Acts. Petitioner Nos. 1 and 3 are private limited companies carrying on the business of transport of goods by road. They have their headquarters at Delhi but their vehicles ply on roads and routes in the State of Punjab. Petitioner No. 2 is the Delhi Provincial Motor Transport Union which is an organization of the owners of the transport vehicles and representatives of transport companies at Delhi. The owners and representatives have formed themselves into a Union for safeguarding their interests.

(2.) The impugned Act came into force on the 1st of August, 1952. Its object was to impose a tax on all fares and freights in respect of passengers carried and goods transported by motor vehicles in the Punjab State. The scheme of the Act is that a tax is to be levied on all fares and freights at the rate of one pie per anna value of the fare or freight. It is further provided that where no freight or fare is charged the tax is to be calculated as if the freight or fare had in fact been charged at the normal rate prevalent on the route in question. One somewhat unusual provision is that the Government may accept a lump sum in lieu of tax and may grant an exemption from the payment of tax in some cases. Owners of motor vehicles are required to maintain accounts and to show them to the prescribed authority appointed under the Act for this purpose. All vehicles which run on roads in the Punjab State are to be registered and a registration certificate must be obtained by their owners. There are provisions providing for a penalty in case of breach of any of the provisions of the Act.

(3.) The vehicles of petitioner Nos. 1 and 3 ply on roads lying partly within the state of Punjab and partly in other States, e.g. Delhi and PEPSU. They failed to register their vehicles according to the terms of sections 8 and 9 and they were served with a notice calling upon them to attend the office of the Excise and Taxation Officer, Jullundur. On receipt of this notice the petitioners moved this Court by this petition.