Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Karnataka Motor Vehicle Taxation seventh schedule |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Karnataka Motor Vehicle Taxation (Amendment) Act, 1997- Classification of vehicles based on value for levy of 'life time tax' - Reasonableness of-Held : As the State is competent to levy and collect tax under Entry 57 List-II of the seventh schedule to the Constitution, levy based on value cannot be struck down as unreasonable. Appellant had challenged the validity of Karnataka Motor Vehicle taxation (Amendment) Act, 1997 on the ground that levy of'life time tax' on the value of the car exceeding 1500 CC is arbitrary, discriminatory and hit by Article 14 of the Constitution. Single Judge held that vehicle costing Rs. 6 lacs and above constituted a different class by itself and therefore, the levy cannot be said to be discriminatory. Division Bench upheld the same. Hence the present appeal. Appellant contended that the said Act has made an unreasonable classification between the vehicles costing more than Rs. 6 lacs and vehicles costing less than Rs. 6 lacs; that the motor vehicle taxes are compensatory in nature and can only be levied on the basis of the capacity of the engine, the weight of the vehicle and the floor area, as such parameters have nexus with the user and maintenance of the road; that by the introduction of one more parameter namely, the "value" of the vehicle, the impugned levy has ceased to be regulatory/compensatory in nature, and has no nexus with the wear and tear of the public road and hence the impugned Act was arbitrary, discriminatory and violative of Article 14 of the Constitution. |
Judge | Honble Mr. Justice S.H. Kapadia |
Neutral Citation | 2005 INSC 158 |
Petitioner | Mohan Das N. Hegde (dead) Through Lrs. |
Respondent | State Of Karnataka And Anr. |
SCR | [2005] 2 S.C.R. 1128 |
Judgement Date | 2005-03-18 |
Case Number | 7398 |
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