SAINIK MOTORS JODHPUR Vs. STATE OF RAJASTHAN
LAWS(SC)-1961-3-51
SUPREME COURT OF INDIA (FROM: RAJASTHAN)
Decided on
March 22,1961
SAINIK MOTORS,JODHPUR
Appellant
VERSUS
STATE OF RAJASTHAN
Respondents
Cited Judgements :-
GODFREY PHILIPS INDIA LTD. VS. STATE OF M.P.(AND OTHER CASES). [LAWS(MPH)-2008-5-61] [REFERRED TO]STATE OF WEST BENGAL VS. KESORAM INDUSTRIES LIMITED [LAWS(SC)-2004-1-84] [REFERED TO (PARA 36) 15.]
Dhruba Charan Mohapatra VS. State of Orissa [LAWS(ORI)-2009-3-49] [REFERRED TO]
JAGDISH CHANDRA GUPTA VS. UNION OF INDIA [LAWS(P&H)-1964-3-13] [REFERRED TO]
M H SURENDRAN VS. DISTRICT COLLECTOR TRISSUR [LAWS(KER)-1999-7-1] [REFERRED]
ABOOBACKER VS. SAHITHYA P S SANGHAM LTD [LAWS(KER)-2003-11-110] [REFERRED TO]
T.M. PRAKASH VS. DISTRICT COLLECTOR [LAWS(MAD)-2013-9-175] [REFERRED TO]
E A THOMMAN VS. REGIONAL TRANSPORT OFFICER ERNAKULAM [LAWS(KER)-1968-3-17] [REFERRED TO]
HYVA (INDIA) P. LTD. VS. UNION OF INDIA AND ORS. [LAWS(BOM)-2015-3-385] [REFERRED TO]
KOMMISETTY NAMMALWAR AND CO VS. AGRICULTURE MARKET COMMITTEE [LAWS(APH)-2009-5-9] [REFERRED TO]
BHARTI TELEMEDIA LTD VS. GOVERNMENT OF NCT OF DELHI [LAWS(DLH)-2011-9-3] [REFERRED TO]
MEWA LAL VS. ASHA RAM [LAWS(ALL)-2017-8-265] [REFERRED TO]
DALJEET SINGH & 2 OTHERS VS. AMARJIT SINGH & 7 OTHERS [LAWS(ALL)-2017-9-241] [REFERRED TO]
ABDUL HAMEED (DEAD) THRU MOHD SHAFIQ VS. SHAKIL AKHTAR & 3 OTHERS [LAWS(ALL)-2017-9-246] [REFERRED TO]
FEDERATION OF HOTEL AND RESTAURANT ASSOCIATION OF INDIA VS. UNION OF INDIA [LAWS(SC)-1989-5-49] [RELIED ON]
SUBRATI VS. BHAGWATI PRASAD [LAWS(RAJ)-1989-10-38] [REFERRED TO]
MUNICIPAL CORPORATION GREATER MUMBAI VS. CENTURY TEXTILES AND INDUSTRIES LIMITED [LAWS(SC)-2025-1-34] [REFERRED TO]
U P STATE ELECTRICITY BOARD VS. SHIV MOHAN SINGH [LAWS(SC)-2004-10-35] [REFERRED TO]
UDHAB CHARAN PRADHAN VS. DIRECTOR GENERAL AND INSPECTOR GENERAL OF POLICE [LAWS(ORI)-2024-3-104] [REFERRED TO]
SUBHAS PRASAD SINHA VS. STATE OF BIHAR [LAWS(PAT)-2011-9-26] [REFERRED TO]
SHARMA TRANSORT REP VS. GOVERNMENT OF ANDHRA PRADESH [LAWS(SC)-2001-12-26] [REFERRED]
TAMILNADU KALYANA MANDAPAM OWNERS ASSOCIATION VS. UNION OF INDIA [LAWS(MAD)-2001-4-39] [REFERRED TO]
PONDICHERRY CO OPERATIVE SUGAR MILLS LTD VS. L MURUGANANTHAM [LAWS(MAD)-2005-7-216] [REFERRED TO]
TATA SKY LIMITED VS. STATE OF M.P. AND OTHERS [LAWS(MPH)-2010-8-112] [REFERRED TO]
SUCHET SINGH VS. STATE OF J. AND K. [LAWS(J&K)-1969-12-13] [REFERRED TO]
KANJIRAPPILLY AMUSEMENT PARK AND HOTELS PVT. LTD. VS. UNION OF INDIA AND ORS. [LAWS(KER)-2016-3-60] [REFERRED TO]
JAIPRAKASH ASSOCIATES LIMITED VS. STATE OF HIMACHAL PRADESH [LAWS(HPH)-2012-1-49] [REFERRED TO]
STATE OF H.P. VS. YASH PAL GARG (D) BY LRS. [LAWS(HPH)-2003-4-15] [REFERRED TO]
SHRI HARIHAR LAL VS. RAJPATI LAL [LAWS(ALL)-2017-8-159] [REFERRED TO]
FARIDA KHATOON VS. OM PRAKASH & 2 ORS [LAWS(ALL)-2017-9-233] [REFERRED TO]
NIGHAT KHATOON AND OTHERS VS. RANI GOVIND KUMARI [LAWS(ALL)-2017-9-272] [REFERRED TO]
KULDEEP SAXENA VS. SMT. ARCHANA SAXENA & 6 OTHERS [LAWS(ALL)-2017-8-261] [REFERRED TO]
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CHANDRAKANT UTTAM CHODANKAR VS. DAYANAND RAYU MANDRAKAR [LAWS(SC)-2004-12-16] [REFERRED TO]
JALKAL VIBHAG NAGAR NIGAM VS. PRADESHIYA INDUSTRIAL AND INVESTMENT CORPORATION [LAWS(SC)-2021-10-59] [REFERRED TO]
SURYA DEV KUMAWAT VS. ASSISTANT COMMISSIONER OF INCOME TAX [LAWS(RAJ)-2016-11-82] [REFERRED TO]
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LALITA KUMARI VS. GOVERNMENT OF U P [LAWS(SC)-2012-2-42] [REFERRED TO]
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SYSTEMATIC CONSCOM LTD VS. STATE OF U P [LAWS(ALL)-2009-3-101] [REFERRED TO]
MADHYA PRADESH TRANSPORT CO PRIVATE VS. STATE OF MADHYA PRADESH [LAWS(MPH)-1961-10-6] [REFERRED TO]
KOTKAPURA BUS SERVICE PRIVATE LTD. VS. THE EXCISE AND TAXATION OFFICER AND ORS. [LAWS(P&H)-1964-1-24] [REFERRED TO]
STATE OF GUJARAT & ORS VS. UTILITY USERS WELFARE ASSOCIATION & ORS [LAWS(SC)-2018-4-40] [REFERRED TO]
UNION BANK OF INDIA VS. RAJENDRA WADHWA [LAWS(MPH)-2015-1-40] [REFERRED TO]
DHARAM PAL SINGH VS. STATE OF J&K [LAWS(J&K)-1975-1-12] [REFERRED TO]
ARNAB KUMAR KALITA VS. STATE OF ASSAM [LAWS(GAU)-2018-2-76] [REFERRED TO]
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GAINDA MAL CHARANJI LAL VS. STATE OF HIMACHAL PRADESH [LAWS(HPH)-1977-8-2] [REFERRED TO]
BHARAT @ BHRAT VS. STATE OF CHHATTISGARH [LAWS(CHH)-2005-4-8] [REFERRED TO]
BRIJLAL YADAV & ANR. VS. HORILAL SAHU & ORS. [LAWS(CHH)-2009-10-50] [REFERRED TO]
VIJAI SINGH VS. DY COMMISSIONER E AND T AJMER [LAWS(RAJ)-1964-11-1] [REFERRED TO]
M P LIME MANUFACTURER ASSOCN VS. STATE [LAWS(MPH)-1989-5-2] [REFERRED TO]
S SIBA RAO VS. NABIN MAHAKUR [LAWS(ORI)-2011-3-84] [REFERRED TO]
GUJARAT AMBUJA CEMENT LTD VS. UNION OF INDIA [LAWS(SC)-2005-3-50] [REFERRED TO]
DELHI AIRTECH SERVICES PVT LTD VS. STATE OF U P [LAWS(SC)-2011-8-49] [REFERRED TO]
COMMISSIONER, CUSTOMS AND CENTRAL EXCISE VS. RAM PISTON & RINGS [LAWS(ALL)-2017-11-117] [REFERRED TO]
COMMISSIONER, CUSTOMS AND CENTRAL EXCISE VS. RAM PISTON & RINGS [LAWS(ALL)-2017-11-117] [REFERRED TO]
NANKAU JAGDISH PRASAD VS. DARYAYEE AND OTHERS [LAWS(ALL)-2017-8-444] [REFERRED TO]
SHIV CHANDRA AND ANOTHER VS. HINDUSTAN SUGAR MILLS GOLA GOKARNATH THRU MANAGER [LAWS(ALL)-2017-8-477] [REFERRED TO]
SUKHDEV SAI VS. EXECUTIVE ENGINEER PUBLIC WORKS DEPARTMENT [LAWS(CHH)-2008-4-29] [REFERRED TO]
STATE OF ANDHRA PRADESH VS. SOMASANKARA SASTRY [LAWS(APH)-1962-6-3] [REFERRED TO]
SUNDARAM FINANCE LIMITED VS. STATE OF MAHARASHTRA [LAWS(BOM)-1993-3-80] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. AMIT K. JAIN ALIAS ANIL K. JAIN [LAWS(GJH)-2016-8-246] [REFERRED TO]
NAVA BHARAT FERRO ALLOYS LIMITED HYD VS. UNION OF INDIA [LAWS(APH)-2005-1-25] [REFERRED TO]
H KSWARANAVAR NASHAR VS. STATE OF MYSORE AND [LAWS(KAR)-1961-11-9] [REFERRED TO]
INDER SINGH VS. COLLECTOR [LAWS(DLH)-1971-12-16] [REFERRED TO]
M/S.AGS ENTERTAINMENT PRIVATE LIMITED, VS. UNION OF INDIA [LAWS(MAD)-2013-6-97] [REFERRED TO]
GAJANANA MOTOR TRANSPORT COMPANY LIMITED SAGAR VS. STATE OF KARNATAKA [LAWS(KAR)-1992-11-24] [REFERRED TO]
JAFRUALLAH KHAN VS. STATE OF RAJASTHAN [LAWS(RAJ)-1978-1-27] [REFERRED TO]
H.K. Swaranavar Nashar and others VS. State of Mysore and another [LAWS(KAR)-1961-11-15] [REFERRED TO]
SUCHET SINGH VS. STATE OF J&K [LAWS(J&K)-1966-12-5] [REFERRED TO]
AKHIL BHARATIYA GRAHAK PANCHAYAT BOMBAY BRANCH VS. STATE OF MAHARASHTRA [LAWS(BOM)-1983-11-13] [REFERRED TO]
M. MADHAVAN PILLAI VS. S.N.M. COLLEGE, MALIANKARA [LAWS(KER)-1990-7-72] [REFERRED TO]
ALL KERALA CHARTERED ACCOUNTANTS ASSOCIATION VS. UNION OF INDIA [LAWS(KER)-2002-1-66] [REFERRED TO]
Jabalpur Bus Operators Association, Jabalpur VS. State of Madhya Pradesh [LAWS(MPH)-1992-10-47] [REFERRED TO]
NATIONAL HYDROELECTRIC POWER CORP.LTD. VS. STATE OF H.P. [LAWS(HPH)-1997-3-31] [REFERRED TO]
JAGDISH PRASAD VS. PASSENGER TAX OFFICER MATHURA [LAWS(ALL)-2000-2-72] [REFERRED TO]
V LAKSHMINARAYANA K VS. STATE OF ANDHRA PRADESH [LAWS(APH)-1971-11-22] [REFERRED TO]
SMT. SAROJINI DEVI & ORS. VS. DHARMPAL & ORS. [LAWS(ALL)-2017-8-300] [REFERRED TO]
S P KARANWAL VS. INDIA LITERACY BOARD THRU DIRECTOR EX-OFFICIO SECYI & 7 ORS [LAWS(ALL)-2017-8-442] [REFERRED TO]
SHITAL DEEN VS. LALLI DEVI [LAWS(ALL)-2017-9-204] [REFERRED TO]
U P HOUSING & DEVELOPMENT BOARD THUR HOUSING COMMISSIONER VS. SURESH CHANDRA & 2 ORS [LAWS(ALL)-2017-12-96] [REFERRED TO]
AMBEDKAR BUS SERVICE (REGD.) PATIALA: VS. STATE OF PUNJAB AND ANOTHER: [LAWS(P&H)-1991-3-160] [REFERRED TO]
UNION OF INDIA VS. BOMBAY TYRE INTERNATIONAL LIMITED [LAWS(SC)-1983-10-27] [REFERRED TO]
MEENAKSHI ALIAS RAMA BAI VS. STATE OF KARNATAKA [LAWS(SC)-1983-9-15] [RELIED ON]
KANKAR MUJARE VS. STATE OF MADHYA PRADESH [LAWS(MPH)-1984-10-19] [REFERRED TO]
NAZAR SINGH SARWAN SINGH VS. THE STATE OF HARYANA, ETC. [LAWS(P&H)-1971-11-32] [REFERRED TO]
SHIVSANKAR MOHANTY VS. STATE OF ODISHA [LAWS(ORI)-2020-2-11] [REFERRED TO]
SHYAMSUNDAR ROY VS. STATE OF BIHAR [LAWS(PAT)-1982-7-3] [REFERRED TO]
INDEPENDENT SUGAR CORPORATION LTD VS. GIRISH SRIRAM JUNEJA [LAWS(SC)-2025-1-123] [REFERRED TO]
M/S. EMPEE DISTILLERIES LIMITED VS. STATE OF TAMIL NADU [LAWS(MAD)-2013-10-156] [REFERRED TO]
CONFEDERATION OF REAL ESTATES DEVELOPERS ASSOCIATION OF INDIA VS. STATE OF MAHARASHTRA [LAWS(BOM)-2015-4-193] [REFERRED TO]
IND SYNERGY LTD VS. CLEARWATER CAPITAL PARTNERS SINGAPORE FUND III PVT LTD [LAWS(BOM)-2010-9-66] [REFERRED TO]
SUNIL KUMAR NIGAM & 5 OTHERS VS. ASHA (DEAD) & OTHERS [LAWS(ALL)-2017-8-435] [REFERRED TO]
KHALIDA FAZLI AND ORS VS. HINDUSTAN PETROLEUM CORPORATION LKO THROUGH ITS MANAGER [LAWS(ALL)-2017-8-452] [REFERRED TO]
MAIKOO & ANR VS. JAI DEVI [LAWS(ALL)-2017-9-294] [REFERRED TO]
LAKHAN SARAN VS. SHIV SARAN [LAWS(ALL)-2017-9-302] [REFERRED TO]
BABITA PATHAK VS. HIGH COURT OF DELHI [LAWS(DLH)-2013-2-146] [REFERRED TO]
K.SUBBARAYUDU VS. STATE OF ANDHRA PRADESH [LAWS(APH)-2021-4-27] [REFERRED TO]
ABHILASH CHANDRA VS. STATE OF U P [LAWS(ALL)-1997-9-123] [REFERRED TO]
SHIRISH MADHUKAR DALVI VS. ASSISTANT COMMISSIONER OF INCOME TAX [LAWS(BOM)-2006-7-127] [REFERRED TO]
L and R JOHNSON INDIA LIMITED VS. UNION OF INDIA [LAWS(BOM)-2003-12-63] [REFERRED TO]
INTERNATIONAL TOURIST CORPORA TION AVTAR SINGH NANAKSAR BUS SERVICE VS. STATE OF HARYANA:STATE OF UTTAR PRADESH:STATE OF HARYANA [LAWS(SC)-1980-12-4] [DISTINGUISHED]
A S KARTHIKEYAN GURUVAYUR BUS TRANSPORT VS. STATE OF KERALA [LAWS(SC)-1973-11-11] [FOLLOWED]
B.K.D. INFRASTRUCTURE PVT. LTD., SUPER CLASS CONTRACTOR VS. STATE OF ODISHA [LAWS(ORI)-2023-9-24] [REFERRED TO]
ANANDA KUMAR MISHRA VS. STATE OF ODISHA [LAWS(ORI)-2023-10-55] [REFERRED TO]
STATE OF KARNATAKA VS. KEMPAIAH [LAWS(KAR)-1984-3-33] [REFERRED TO]
CHHOTU BABU VS. STATE OF C G [LAWS(CHH)-2006-1-21] [REFERRED TO]
AKHIL GUJARAT PRAVASI VAHAN SANCHALAK MAHAMANDAL VS. STATE OF GUJARAT [LAWS(GJH)-2001-1-73] [REFERRED TO]
INDIAN INSTITUTE OF ARCHITECTS VS. UNION OF INDIA [LAWS(MAD)-2001-10-11] [REFERRED TO]
TAMIL NADU KALYANA MANDAPAM OWNERS ASSOCIATION VS. U O I [LAWS(MAD)-2001-4-24] [REFERRED TO]
NURPUR PVT.BUS OPERATORS UNION VS. STATE OF H.P. [LAWS(HPH)-1990-12-22] [REFERRED TO]
KERALA TEXTILE AND GARMENTS DEALERS WELFARE ASSOCIATION VS. STATE OF KERALA [LAWS(KER)-2015-11-135] [REFERRED TO]
MOHD TAHSEEN VS. AQEELA KHATOON [LAWS(ALL)-2017-8-439] [REFERRED TO]
FORESH DEPTT THROUGH DIVI FOREST OFFICER VS. HEERA SINGH AND ANOTHER [LAWS(ALL)-2017-9-245] [REFERRED TO]
SHIV KUMAR & ANR VS. SURESH PAL [LAWS(ALL)-2017-9-271] [REFERRED TO]
ARJUN SAMBHAJI KHADE VS. MANGAL ANKUSH KHARMATE [LAWS(BOM)-2002-11-10] [REFERRED TO]
L & R JOHNSON (INDIA) LIMITED VS. UNION OF INDIA [LAWS(BOM)-2003-1-177] [REFERRED]
NIRMALA REVAPPA PATTANSHETTI VS. MAHADEV RAMCHANDRA MALI [LAWS(BOM)-2006-2-40] [REFERRED TO]
JUDGEMENT
Hidayatullah, J. -
(1.)This is a petition under Art. 32 of the Constitution. The petitioners, who are seven in number, challenge as unconstitutional and ultra vires certain provisions of the Rajasthan Passengers and Goods Taxation Act, 1959, the Rajasthan Passengers and Goods Taxation Rules, 1959, and a notification issued under R. 8. For brevity, we will refer to them in this judgment, as the Act, the Rules and the notification respectively. The first petitioner is a registered firm, petitioners Nos. 2 to 6 are the partners of that firm, and petitioner No. 7 is the General Manager of the firm. Petitioner No. 7 holds a public carrier permit for the whole of Rajasthan in his individual name. The petitioners also hold 59 stage carriage permits from the Regional Transport Authority, Jodhpur, for diverse routes over roads which have different kinds of surfaces, some being sandy or katcha and others, metalled, tarred, etc.
(2.)The Act was passed in 1959 for levying a tax on passengers and goods carried by road in motor vehicles. The power to enact the Act purports to be derived from Entry No. 56 of the State List in Sch. VII to the Constitution, which reads:
"56. Taxes on goods and passengers carried by road or on inland waterways." The Act received the assent of the President on April 27, 1959, and was published in the Rajasthan Gazette on April 30, 1959. The same day, the Rules framed in exercise of the powers conferred by S. 21 of the Act were also published, and the notification was also issued. The Rules were subsequently amended, and we are concerned with the Rules, as amended.
(3.)Before we deal with the case further, it is convenient to see how the Act is constructed and what the Rules and the notification provide. The Act, which consists of 21 sections, came into force in the whole of the State of Rajasthan on May 1,1959. The Act contains the usual provisions to be found in all taxing statutes about appeals, revision, offences and penalties, power to compound offences, recovery of tax as arrears of land revenue, bar of proceedings, exclusion of the jurisdiction of Civil Courts, refunds and power to make rules, to which detailed reference need not be made. We are only concerned with the imposition of the tax and the mode of its recovery, and will refer to those provisions which are relevant. Section 3 is the charging section, and S. 4 deals with the method of collection of the tax. Since these sections are the main subject of attack, we quote them in full:
"3. Levy of tax. - (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 rate not exceeding one-eight of the value of the fare or freight, in the case of cemented, tarred, asphalted, metalled, gravel and kankar roads and not exceeding one-twelfth of such value in other cases, as may be notified by the State Government from time to time subject to a minimum of one naya paisa in any one case, the amount of tax being calculated to the nearest naya paisa.
Explanation.-When passengers are carried and goods are transported by a motor vehicle, and no fare or freight 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 a 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 (Central Act 4 of 1939).
3. Where passengers are carried or goods transported by a motor vehicle from any place outside the State to any place in 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 (1) and shall be calculated on such amount as distance covered in the State bears to the total distance of the journey:
Provided that where passengers are carried or goods transported by a motor vehicle from any 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 freight payable for the entire journey and the owner shall issue a single ticket or receipt, as the case may be accordingly.
4. Method of collection of tax-The tax 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 the State Government may accept a lump sum in lieu of the tax chargeable on freight in the manner prescribed:
Provided further that in case of contract carriages the State Government may accept a lump sum in lieu of the tax chargeable on fare in the manner prescribed."
(2.)The Act was passed in 1959 for levying a tax on passengers and goods carried by road in motor vehicles. The power to enact the Act purports to be derived from Entry No. 56 of the State List in Sch. VII to the Constitution, which reads:
"56. Taxes on goods and passengers carried by road or on inland waterways." The Act received the assent of the President on April 27, 1959, and was published in the Rajasthan Gazette on April 30, 1959. The same day, the Rules framed in exercise of the powers conferred by S. 21 of the Act were also published, and the notification was also issued. The Rules were subsequently amended, and we are concerned with the Rules, as amended.
(3.)Before we deal with the case further, it is convenient to see how the Act is constructed and what the Rules and the notification provide. The Act, which consists of 21 sections, came into force in the whole of the State of Rajasthan on May 1,1959. The Act contains the usual provisions to be found in all taxing statutes about appeals, revision, offences and penalties, power to compound offences, recovery of tax as arrears of land revenue, bar of proceedings, exclusion of the jurisdiction of Civil Courts, refunds and power to make rules, to which detailed reference need not be made. We are only concerned with the imposition of the tax and the mode of its recovery, and will refer to those provisions which are relevant. Section 3 is the charging section, and S. 4 deals with the method of collection of the tax. Since these sections are the main subject of attack, we quote them in full:
"3. Levy of tax. - (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 rate not exceeding one-eight of the value of the fare or freight, in the case of cemented, tarred, asphalted, metalled, gravel and kankar roads and not exceeding one-twelfth of such value in other cases, as may be notified by the State Government from time to time subject to a minimum of one naya paisa in any one case, the amount of tax being calculated to the nearest naya paisa.
Explanation.-When passengers are carried and goods are transported by a motor vehicle, and no fare or freight 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 a 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 (Central Act 4 of 1939).
3. Where passengers are carried or goods transported by a motor vehicle from any place outside the State to any place in 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 (1) and shall be calculated on such amount as distance covered in the State bears to the total distance of the journey:
Provided that where passengers are carried or goods transported by a motor vehicle from any 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 freight payable for the entire journey and the owner shall issue a single ticket or receipt, as the case may be accordingly.
4. Method of collection of tax-The tax 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 the State Government may accept a lump sum in lieu of the tax chargeable on freight in the manner prescribed:
Provided further that in case of contract carriages the State Government may accept a lump sum in lieu of the tax chargeable on fare in the manner prescribed."
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