SURRENDARA TRANSPORT AND ENGINEERING CO LTD Vs. STATE OF PUNJAB
HIGH COURT OF PUNJAB AND HARYANA
SURRENDARA TRANSPORT AND ENGINEERING CO. LTD., KALKA
STATE OF PUNJAB
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Bhandari, C.J. -
(1.) The question which falls to be determined in the present case is whether it was within the territorial competence of the State Legislature to enact the measure known as "The Punjab Passengers and Goods Taxation Act, 1952".
(2.) The petitioners are holders of permits under the Motor Vehicles Act and their vehicles are continuously engaged in carrying goods and passengers between Kalka and Simla, over a route 56 miles long, 5 miles of which passes through the territory of the Punjab and the remaining 51 miles through the territories of Himachal Pradesh and Patiala and East Punjab States Union.
(3.) On 1-9-1952 the State Legislature enacted a measure called "The Punjab Passengers and Goods Taxation Act, 1952" which provided that where passengers are carried or goods transported by a motor vehicle from any place outside the State to any place within the State, or from any place within the State to any place outside that State, a tax shall be payable in respect of the distance covered within the State and shall be calculated on such amount as bears the same proportion to the total fare or frieght as the distance covered in the State bears to the total distance of the journey. Then follows a proviso to which objection has been taken and which is in the following terms:
"Provided that where passengers are carried or goods transported by a motor vehicle from any other place within the State, to any other place within the State through the intervening territory of another State, the tax shall be levied on the full amount of the fare or frieght payable for the entire journey and the owner shall issue a single ticket or receipt, as the case may be, accordingly.";
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