Matthew, J. - (1.) In these appeals, the question for consideration is whether the amendment to the Mysore Motor Vehicles Taxation Act, 1957 (hereinafter referred to as the 'Act') by introducing item No. 4-A in Part A of the Schedule to the Act by the Mysore Motor Vehicles Taxation (Amendment) Act' 1972, is constitutionally valid By the amendment, tax in respect of motor vehicles which are covered by contract carriage permits has been raised from Rs. 35/- to Rs. 100/- per seat per quarter.
(2.) Before the High Court, the respondents challenged the validity of the Amendment Act on the ground that it violated their fundamental right under Article 14 and the right to freedom of trade, commerce and intercourse guaranteed under Article 301 of the Constitution The ground of challenge under Art.14 was that contract carriages were similarly situated as stage carriages with respect to the purpose of the Act and that enhancement of vehicle tax on contract carriages alone offends that Article. The High Court held that the enhancement of the tax on contract carriages alone violated Article 14 and declared that the amendment was void. The High Court, therefore, allowed the petitions, without going into the question of the validity of the contention of the respondents based on Article 301. These appeals, by certificate, are directed against the Judgment of the High Court.
(3.) Item 4-A reads: "Motor vehicles plying for hire or reward used for transport of passengers in respect of which contract carriage permits have been issued under the Motor Vehicles Act, 1938 and permitted to carry more than five persons excluding the driver, for every passenger which the vehicle is permitted to carry Rs. 100 Rs. l50." The Act was passed after the formation of the new State of Mysore and it received the assent of the President on 30-11-1957. Section 3 levies tax on all motor vehicles suitable for use on roads, kept in the State of Mysore at the rates specified in Part A of the schedule to the Act. In Part A of the schedule, taxation is either on the basis of laden weight, or the capacity of the vehicle to carry passengers, or the mileage covered. The basis of taxation in respect of goods vehicles is the laden weight of the vehicle while tax on motor vehicles for hire and used for transport of passengers is the seating capacity of the vehicle. Before the Amendment Act, both stage carriage and contract carriage vehicles came under item No. 4 of 'Part A of the Schedule. By the Amendment Act, the rate of the tax or, contract carriages was enhanced to Rs. 100,;