P.C BALAKRISHNA MENON,C.J. - (1.) These writ petitions are by the "owners" of "motor vehicles" within the meaning of the Himachal Pradesh Passengers and Goods Taxation Act, 1955, (for short the Act). They have challenged the validity of the amended Rule 9 of the Himachal Pradesh Passengers and Goods Taxation Rules, 1957 (for short the Rules), as in excess of the statutory provision under section 4 of the Act, and also as violative of Article 14 of the Constitution.
(2.) The preamble of the Act states that the Act is "to provide for levying a tax on passengers and goods carried by road in certain motor vehicles". Section 3 of the Act is the charging section as par which a tax is to be levied charged and paid to the State Government, on all fares and freights in respect of all passengers carried and goods transported by motor vehicles at such rates not exceeding fifty per cent as may be notified by the State Government. Section 3 of the Act reads as follows 2 - "3. (1) There shall be levied, charged and paid to the State Government a tax on all fares and freights in respect of all passengers carried and goods transported by motor vehicles at such rates not exceeding (fifty per cent) of the value of the fare or freight, as the case may be, and as the Government may, by notification, direct, (subject to minimum of five paise in any one case, the amount of tax being calculated to nearest multiple of five paise by ignoring two paise or less and counting more than two paise as five paise). Explanation. -When passengers are carried and goods are transported by a motor vehicle, and no fare or freight whether chargeable or not has been charged the tax shall be levied and paid as if such passengers were carried or goods transported at the normal rate prevalent on the route. (2) Where any fare or freight charged is a lump sum paid by a person on account of a season ticket or as subscription or contribution for any privilege, right or facility which is combined with the right of such person being carried or his goods transported by motor vehicle, without any further payment or at a reduced charge, the tax shall be levied on the amount of such lump sum or on such amount as appears to the prescribed authority to be fair and equitable having regard to the fare or freight fixed by a competent authority under the Motor Vehicles Act, 1939. (2 -A) Where a motor vehicle, other than a public service vehicle plies for hire or reward in contravention of the provisions of the Motor Vehicles Act, 1939, the owner of such vehicle shall, without prejudice to any action which is or may be taken under that act, be liable to pay tax at the rate specified in sub -section (1) or such amount of fares and freights as may be determined in the prescribed manner by the prescribed authority. (3) Where passengers are carried or goods transported by a motor vehicle from any place outside the State or from any place outside the State to any place outside State but through the State or from any place within the State to any other place within the State but through the intervening territory of another State to any place within the State, or from any place within the State to any place outside the State the tax shall be payable in respect of the distance covered within the State at the rate laid down in sub -section (i) and shall be calculated on such amount as bears the same proportion to the total fare and freight as the distance covered in the State bears to the total distance of the journey. (3 -A) Notwithstanding anything contained in sub -section (I) of section 3 of the Act, from and after the commencement of this section, there shall further be levied and paid to the State Government a surcharge on the tax payable by every passenger carried by a stage/contract carriage for each journey at a rate of 20% subject to a minimum of 5 paise in any one case, the amount of surcharge being calculated to the nearest multiple of 5 paise by ignoring 2 paise or less and counting more than 2 paise and 5 paise, for the purpose of payment of ex -gratia grant to a passenger under the scheme to be prepared and notified by the State Government in the official Gazette: (Provided that such scheme may be framed by the State Government with retrospective effect from which the surcharge was levied."
(3.) Section 4 of the Act provides for the method of collection of tax and that section is as follows: "4. The tax and surcharge shall be collected by the owner of the motor vehicle and paid to the State Government in the prescribed manner; (Provided that in case of public carriers or private carriers the Government may accept a lump sum in lieu of the tax chargeable on freight in the manner prescribed: Provided further that in case of stage or contract carriages the Government may accept a lump sum in lieu of the tax and surcharge chargeable on fare in the manner prescribed).";