- (1.) The petitioners are operating Stage Carriage Services in the State of Punjab. They have called in question in this writ petition under Art. 226 of the Constitution of India, the action of the respondent State in directing them to pay passenger tax on lump sum basis and have prayed for a direction to the respondents to accept the tax by way of affixation of passengers tax adhesive stamps on the tickets issued to the passengers. The case of the petitioners is that they are carrying on the business of operating Stage Carriage Permits granted by the authority under the Motor Vehicles Act. They are at liberty to pay passenger tax by way of affixation of passenger tax adhesive stamps and they cannot be forced to pay passenger tax on lump sum basis and that the demand raised by the respondents requiring the petitioners to pay passenger tax on lump sum basis is illegal and deserves to be quashed.
(2.) On notice of motion having been issued, the respondents have filed written statement wherein the stand of the respondents is that the payment of passenger tax by way of lump sum has become mandatory after the proclamation of the Punjab Passengers and Goods Taxation Ordinance 1992 (Punjab Ordinance No. 3 of 1992) amending the proviso to Section 4 of the Punjab Passengers and Goods Taxation Act, 1952 (for thort 'the Act') which now provides, inter alia, that the State Government shall accept in the prescribed manner a lump sum in lieu of the tax chargeable. Further the stand of the respondents is that by way of amendment brought about by Punjab Ordinance No. 3 of 1992 in the proviso to Section 4 of the Act, the words "may accept" have been replaced by the words "shall accept" and, therefore, now the Government is left with no option but to accept the payment from the owners of Stage Carriages, Contract Carriages and Mini Buses by way of lump sum. It is specifically stated in para 12 of the written statement that the interpretation of the petitioners to the effect that they have an option to pay passenger tax by either of the two methods is incorrect and that the transporters have no option but to pay passenger tax in lump sum only. It is also asserted that the present rate of passenger tax is 45% of the value of fares but the option to pay the tax by fixation of adhesive stamps of passengers tax has been taken away by the Legislature by amending the proviso to Section 4 of the Act. On the aforesaid premises, notices of demand served upon the respondents were sought to be justified.
(3.) After hearing the petitioners and Mr. P. S. Randhawa, Excise and Taxation Officer, Amritsar II, we are of the view that this writ petition deserves to succeed. The Legislature in the State of Punjab enacated the Punjab Passengers and Goods Taxation Act, 1952 with a view to impose tax on goods and passengers carried by road by motor vehicles. This legislation was obviously passed under Entry 56 of List II of the Seventh Schedule of the Constitution of India. Section 3 of the Act provides that 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 the rate of forty five per centum of the value of the fare of freights, as the case may be. Section 4 thereof, provides the method of collection of tax. Before the proclamation of Punjab Ordinance No. 3 of 1992, Section 4 of the Act read as under :- "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 the State Government may accept in the prescribed manner a lump sum in lieu of the tax chargeable - (i) on freight in case of public and private carriers; (ii) on fare in case of stage carriages, contract carriages and mini buses; (iii) on fare in case of transportation of passengers by stage carriages, contract carriages and mini buses on special occasion like fairs, pilgrimages to religious and historical places." After proclamation of Punjab Ordinance 3 of 1992, Section 4 of the Act reads as under :- "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 the State Government shall accept in the prescribed manner a lump sum in lieu of the tax chargeable - (i) on fare in case of stage carriages, contract carriages and mini buses; (ii) on fare in case of transportation of passengers by stage carriages, contract carriages and mini buses on special occasion like fairs, pilgrimages to religious and historical places. Provided further that the State Government may accept in the prescribed manner a lump sum in lieu of the tax chargeable on freight in case of Public Carriers and Private Carriers." Certain other amendments were also made by way of Ordinance aforesaid but the same are not relevant for disposal of this petition.;