REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.      3325          of  2009 (Arising out of SLP (C) No.216 of 2007)

Prahlad Singh & Anr. ....Appellants

Versus

State of U.P. & Ors.  ....Respondents

With CIVIL APPEAL NO.      3330          of  2009 (Arising out of SLP(C ) No. 12499 of 2007)

With CIVIL APPEAL NO.   3331-3332        of  2009 (Arising out of SLP(C ) No. 19086-87 of 2007)

With CIVIL APPEAL NO.    3329           of  2009 (Arising out of SLP(C ) No. 2916 of 2007)

With CIVIL APPEAL NO.    3328              of  2009

(Arising out of SLP(C ) No. 2919 of 2007)

With CIVIL APPEAL NO.       3327         of  2009 (Arising out of SLP(C ) No. 2922 of 2007)

With CIVIL APPEAL NO.    3326          of  2009 (Arising out of SLP(C ) No. 347 of 2007)

2

With W.P. (C ) NO. 39 OF 2007

With W.P. (C ) NO. 40 OF 2007

  J U D G M E N T

Dr. ARIJTI PASAYAT, J.

1. Leave granted.

2. Challenge in these appeals is to the judgment of a Division Bench of  

the Allahabad High Court.  Several  Petitions were disposed of by a  

common judgment and the writ  petitions were dismissed.   The writ  

petitioners had questioned the vires of Article II of Part D of the First  

Schedule  of  the  Uttar  Pradesh  Motor  Vehicles  Taxation  Act,  1997  

(hereinafter referred to as the ‘Taxation Act’).  Order dated 30.10.2000  

passed  by  the  Transport  Commissioner,  U.P.,  Lucknow  was  also  

questioned.   The  High  Court  noted  that  in  the  meeting  held  on  

20.4.1999 decision was taken by the Transport Commissioner not to  

realize  the  Additional  Tax  at  the  rate  of  Rs.45/-  per  metric  ton  as  

provided  under  Article  II  of  Part  D  of  the  First  Schedule  of  the  

Taxation Act.  By order dated 30.10.2000 the Transport Commissioner

3

had informed all his subordinate authorities that the decision had since  

been revoked and tax in accordance with law was to be realised.   

3. According to the writ petitioners they were Stage Carriage Operators,  

they have own buses and operate them on the strength of permanent  

Stage  Carriage  Permit  granted  in  their  favour  by  the  Regional  

Transport Authority. Prior to the commencement of the Taxation Act,  

taxes were realised from the transport operators under the provisions of  

different  enactments  enacted  i.e.  United  Provinces  Motor  Vehicle  

Taxation Act, 1935, Motor Gadi (Yatri Kar) Adhiniyam, 1962 and U.P.  

Motor Gadi (Maal Kar) Adhiniyam, 1963.

4. The  Taxation  Act  replaced  the  aforesaid  three  acts  and  it  became  

operative from 9.11.1998. The writ petitioner contented that they had  

paid road tax under Section 4 of Uttar Pradesh Motor Vehicle Taxation  

Act, 1935 (in short the 1935 Act’) which was replaced by Section 4 of  

the Taxation Act.   They had paid a tax at  the rate of Rs.2015/-  per  

quarter inclusive of Rs.45 for the luggage of passengers in respect of 55  

seater  vehicle.   With  the  coming into  force of  the  Taxation Act  the  

Authorities started demanding additional tax at the rate of Rs.45/- for  

every metric ton on the gross vehicles  weight  of the  vehicle or  part

4

thereof in terms of Article II of Part D of the First Schedule of the Act.  

On protest being raised by the transport operators, a decision was taken  

by the Transport Commissioner on 20.4.1999 and direction was issued  

to the subordinate authorities to obtain affidavit from the Stage Carriage  

operator to the effect that they do not carry goods in their vehicle except  

the personal luggage of the passengers and on filing of such affidavit  

the tax demanded under the new provision shall not be realised from  

them.

5. The High Court held that in a vehicle which is covered by the Stage  

Carriage  Permit,  luggage  of  the  passengers  as  also  the  goods  are  

permitted to be carried.  The only restriction is that the weight of goods  

and passengers luggage and that of the passenger including the weight  

of unladen vehicle should not exceed the gross vehicle’s weight.

6. The  High  Court  after  referring  to  various  provisions  observed  that  

Article  II  is  attracted when passengers’  goods whether  it  is  personal  

luggage of the passenger or not is transported in the vehicle.  Thus the  

State Carriage Permit holder were liable to pay tax under Article II of  

Part D of the First Schedule of the Act.  Therefore, the Writ Petitions  

were dismissed. It was the stand of  learned counsel for the appellants

5

that since goods have not been defined under the Taxation Act, in view  

of the specific provisions of the Taxation Act i.e. Section 2(o) recourse  

to the definition given in the Motor Vehicles Act, 1988 (in short the  

‘Act’) has to be taken.

7. It was submitted that there is no scope for carrying any goods of the  

passengers and in fact they had not carried any such goods in the Stage  

Carriage,  except  the  personal  luggage  and,  therefore,  they  were  not  

liable to pay any tax under the aforesaid Article.

8. Learned counsel for the respondent-State on the other hand supported  

the judgment of the High Court.   

9. Some of the relevant provisions of the Taxation Act read as follow:  

"U.P. MOTOR VEHICLES TAXATION ACT, 1997:

2.Definitions. In this Act,

a) "additional tax" means a tax imposed under Section 5 or Section 6 in  

addition to the tax imposed under Section 4.

d)  "goods  carriage"  means  motor  vehicle  constructed  or  adapted  

wholly  or  partly  for  use  for  the  carriage  of  goods,  or  any  motor  

vehicles not so constructed or adapted when used for the carriage of  

goods either solely or in addition to passenger, and includes a trailer

6

but does not include a motor cab, or a maxi cab or a contract carriage  

or  stage  carriage  where  such  contract  carriage  or  stage  carriage  is  

authorised to carry a limited quantity of load;

e)  "limited  quantity  of  load"  means  such  quantity  of  load,  not  

exceeding  the  limits  determined  by  the  Transport-  Commissioner,  

Uttar  Pradesh,  as  the  Registering  Authority  may  specify  in  the  

registration certificate in respect of a vehicle.

…. …. …

(1) "tax" means any tax levied under section 4;

(o) words and expressions used but not defined in this Act and defined  

in  the  Motor  Vehicles  Act,  1988,  shall  have  the  respect  meaning  

assigned to them in that Act,"

4. Imposition of Tax -

(1) Save  as  otherwise  provided  in  this  Act  or  the  rules  made  

thereunder, no motor vehicle other than a transport vehicle, shall be  

used in any public place in Uttar Pradesh unless a one-time tax at the  

rate applicable in respect of such motor vehicle, specified in Part `B'  

of the First Schedule has been paid in respect thereof;

7

Provided that in respect of an old motor vehicle, instead of a one-time  

tax,  annual  tax  at  the  rate  applicable  to  such  motor  vehicle  as  

specified in Part ‘C’ of the First Schedule may be-paid.  

(2)  Save  as  otherwise  provided  by or  under  this  Act  no  transport  

vehicle shall be used in any public place in Uttar Pradesh unless a tax  

at the rate applicable to such motor vehicle, as specified in Part `D' of  

the First Schedule has been paid in respect thereof.

(3) Where any motor vehicle other than a transport vehicle, in respect  

whereof  one-time  tax  has  been  paid,  is  operated  as  a  transport  

vehicle, the tax payable under this Act on such transport vehicle shall  

be payable."

Sub-Section (2) of Section 4 further provides that tax is to paid at the  

rate specified in Part D of First Schedule. Under Part D Petitioners are  

required to pay in Article I Item 7 as they have been carrying more  

than 35 passenger. The said item No.7 for ready reference reads as  

follows:

--------------------------------------------------------------------------------- 1. 2 3  ______________________________________________________

"7 With seating capacity for more than exclusive of the driver;

a) if intended for use on "A-Class" route Rs. 1115.00+       Rs. 45.00 for Every seat in excess of thirty five seats.

8

b) if intended for use on "B-Class route Rs. 900.00 +

    Rs. 35.00 for every seat in excess of thirty five seats.

Explanation:- For the purpose of this Article, fifty percent of the sanctioned standing capacity, if any, shall reckoned as additional seating capacity.

Vehicles plying for the conveyance of Limited number of passengers and the trans Port of a limited quantity of passengers' Goods, the tax payable under Article I in Respect of the authorized number of Passenger seats in addition to tax for Every metric ton of the registered laden Weight of the vehicle, or part thereof,” 45.00

III _________________

IV _________________

Explanation: Where any motor vehicle is used for various purposes or in such a manner as to cause it to be taxable more than one Article of this Schedule, the tax payable shall be at the highest appropriate rate."

10. The only question that needs to be adjudicated is whether Article II has  

application.   It  is  the  stand  of  the  appellants  that  under  Part  D,  the  

appellants are required to pay in Article I item VII as they have been  

carrying more than 35 passengers.   

11. It needs to be noted that in Writ Petition No. 6266 (M/B) of 2000, it has  

been observed by the High Court as follows:

9

“it is therefore, clarified that if the vehicle of the petitioners is  covered  under  more  than  one  Articles  of  Part  D  of  the  Ist  Schedule  of  the  Act,  then  the  highest  rate  mentioned  under  either of the Article would  be payable.  To give an illustration,  if a vehicle falls under Article I and also under Article II of part  D of the Ist  Schedule,  then the amount of tax payable under  both the Articles have to be calculated and the amount which is  higher  shall  be  payable.   The  amount  payable  by  a  vehicle  owner, if his vehicle under Article II, would be higher than the  amount payable under Article I as under Article II the amount  which is  payable  is  in addition to the  amount payable  under  Article I and not limited to only Rs.45/- per ton.”

12. In  our  opinion  because  of  the  explanation  the  view  expressed;  as  

noted above indicates the correct view, Article II operates when goods are  

carried and it does apply to passengers’ luggage.

13. The appeals  and writ  petitions are accordingly disposed of.   There  

shall be no orders as to costs.

.............................................J. (Dr. ARIJIT PASAYAT)

..............................................J. (V.S. SIRPURKAR)

...............................................J. (ASOK KUMAR GANGULY)

New Delhi, May 06, 2009