- (1.) THE petitioner in all the eight writ petitions (Noa 6343. 6568, 6569, 6571, 6572, 6573, 6647 and 6648 of 1974) is a Company engaged in the manufacture of steel tubes and pipes. Its factory is located at Ganaur while a number of its employees live at Sonepat, about 24 kilometres away. The company operates a bus to provide transport facilities to the employees living at Sonepat. This is not, however, provided as a part of the contract of employment. Nor is the facility provided free. Bach employee taking advantage of the facility has to pay to the Company Rs. 10 per month. 'but', it is stated in the writ petitions, "the main object of the Company was not to make a profit by running this bus but to give its staff a facility as a measure of ensuring punctuality and smooth and harmonious functioning of the factory. It was a part of various measures adopted by the Company for the Social Welfare and harmony between the employer and the employed. "
(2.) THE Company was called upon to pay tax under the Punjab Passengers and goods Taxation Act. 1952, as amended in Haryana. The Company objected on the ground that it was not engaged in the business of carrying passengers and that, in providing a bus for the transport of its employees, it was not actuated by any 'profit-motive'. In the absence of a 'profit-motive', it was said, the company's bus could not be said to be a vehicle used for the carriage of passengers for 'hire or reward' so as to make it a 'public service vehicle' as defined in the Motor Vehicles Act. It was pointed out while the annual expenditure on the bug was about Rs. 15,400, the total receipts from the employees amounted to Rs. 9,000 only. The Company's contention was overruled by the Excise and Taxation Officer and, on appeal, by the Deputy excise and Taxation Commissioner. Both of them followed the decision in the hindustan Machine Tools Ltd. v. State of Haryana, 1970-72 Pun LR 193, rendered by one of us (Narula J. as my Lord the Chief Justice then was ). The present writ petitions have been filed questioning the decision of the taxing authorities, and, as may be expected, the correctness of the decision in the hindustan Machine Tools Ltd. v. State of Haryana is canvassed.
(3.) THE relevant statutory provisions may now be noticed. Section 2 of the punjab Passengers and Goods Taxation Act contains various definitions. It begins with the prefatory admonition that the expressions defined shall have the meanings assigned "unless there is anything repugnant in the subject or context". This preface is of considerable importance in the present case, as we shell presently show. The word 'passenger' is defined in Section 2 (f) to mean:- "any person travelling in a public service vehicle, but shall not include the driver or the conductor or an employee of the owner of the vehicle travelling in the bona fide discharge of his duties in connection with the vehicle. " The expression 'motor vehicle' is defined as:-- "a public service vehicle, public carrier, private carrier or a trailof when attached to any such vehicle. " The expression 'public service vehicle' is not defined in the Passengers and goods Taxation Act but Section 2 (j) provides that words and expressions not defined in the Act shall have the meaning assigned to them in the Motor vehicles Act, 1939. Section 2 (25) of the Motor Vehicles Act defines a 'public service vehicle' to mean:--- "any motor vehicle used or adapted to , be used for the carriage of passengers for hire or reward, and includes a motor cab, contract carriage and stage carriage. " Section 8 of the Passengers and Goods Taxation Act is the charging section. Section 3 (1) (i) to the extent that it is relevant is as follows- "there shall be levied, charged and paid to the State Government a tax at such rate not exceeding sixty per centum of the value of fare or freight, as the case may be, on all passengers and goods carried by a motor vehicle other than a private carrier. . . . . . as the State government may, by notification direct. . . . " There is a very significant Explanation to Section 3 (1) which is as'follows:- "explanation-- When passengers and goods are carried by a motor vehicle, other than a private carrier, and no fare or freight is charged, the tax shall be levied and paid as if such passengers and goods are carried at the normal rate prevalent on the route or at the rate fixed by the competent authority under the Motor Vehicles Act (Central Act 4 of 1939), whichever is higher. " Sub-section (2) of Section 3 is also important and it is as follows:- "where any fare or freight charged is a lump sum paid by a person on account of a seasonal ticket or as subscription or contribution for any privilege, right or facility which is combined with the right of such person or his goods being carried by a motor vehicle, without any further payment or payment at a reduced rate, 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," Section 4 provides that the tax levied on passengers and goods shall be collected by the owner and the tax so collected paid to the State Government. Section 5 (1) prescribes that no passengers shall be allowed to travel in a motor vehicle by the owner unless he is issued a ticket denoting that the tax has been paid. Section 6 (1) enjoins a duty on the owner to keep accounts and submit returns at prescribed intervals. Section 10 empowers the State government to grant general or special exemption from the operation of all or any of the provisions of the Act , in favour of any person or class of persons if such exemption would promote national or public interest.;