Holding

Article II operates when goods are carried and includes passengers' luggage; therefore, the higher tax rate under Article II is payable.

Summary

The petitioners, operators of 55‑seater stage‑carriage buses, challenged the demand of additional tax under Article II of Part D of the Uttar Pradesh Motor Vehicles Taxation Act, 1997, arguing that they only carried passengers and their luggage and should pay tax only under Article I Item 7 for seating capacity. The High Court held that when a vehicle falls under more than one article of Part D, the higher rate applies and that Article II is attracted even for passengers' luggage. The petitioners appealed, contending that goods were not defined and that luggage should not be treated as goods. The Supreme Court affirmed the High Court’s view, interpreting the explanation to Item 7 to mean that the highest rate payable under any applicable article governs, and held that Article II operates when goods are carried, including passengers' luggage. Consequently, the additional tax under Article II was upheld.

Issues considered

Whether Article II of Part D of the First Schedule of the Uttar Pradesh Motor Vehicles Taxation Act, 1997 applies to stage‑carriage vehicles that carry only passengers and their luggage.
Whether, when a vehicle is covered by more than one article of Part D, the highest tax rate among those articles is payable.

Legislation cited

Motor Vehicles Act, 1988s. Definitions (as incorporated by reference)
Uttar Pradesh Motor Vehicles Taxation Act, 1997s. Part D, Article II, s. Part D, Article I Item 7, s. Section 2(0), s. Section 4

Subjects

motor vehicle taxstage carriageadditional taxArticle IIpassenger luggagehighest rate ruleUttar Pradeshtaxation actroad tax

Judgment

(2009] 8 S.C.R. 926

A PRAHLAD SINGH & ANR. ~
v.
STATE OF U.P. & ORS.
(Civil Appeal No. 3325 of 2009 Etc. Etc.)

MAY 6, 2009
B
[DR. ARIJIT PASAYAT, V.S. SIRPURKAR AND ASOK
KUMAR GANGULY, JJ.)

Uttar Pradesh Motor Vehicles, Taxation Act, 1997:
c
s. 4 and First Schedule, Part D, Article I, item 7,
Explanation, and Article II - Road Tax - Imposition of tax -
55 seater Stage Carriage - Demand of additional tax at the
rate of Rs. 451- for every metric ton - Held: High Court was
right in holding that if the vehicles were covered under more
D
than one Articles of Part-D '>f the First Schedule to the Act,
"'
then the highest rate mentioned under either of the Articles
would be payable - Article II of Part-D of the First Schedule
operates when goods were carried and it does apply to
passengers' luggage.
E
The appellants filed writ petitions before the High
Court challenging vires of Article II of Part D of the First k
Schedule to the Uttar Pradesh Motor Vehicles Taxation \

Act, 1997 and the order dated 30.10.2000 passed by the
F Transport Commissioner. The case of the petitioners was
that they were Stage Carriage Operators operating their
buses under the permanent Stage Carriage permit
granted to them and they had paid road tax u/s 4 of the
United Provinces Motor Vehicles Act, 1935. It was
G submitted that with the coming into force of the 1997 Act,
the demand for additional tax at the rate of Rs. 45/- for
every metric ton in terms of Article II of Part D of the First
Schedule to the Act was not applicable to them and they
were required to pay in terms of Article I, Item 7, as they
H 926
PRAHLAD SINGH & ANR. v. STATE OF U.P. & ORS. 927

\

-
) were carrying more than 35 passengers. The High Court A
dismissed the writ petitions holding that if the vehicles
of the petitioners were covered under more than one
Articles of Part D of the First Schedule to the Act, then
the highest rate mentioned under eUher of the Articles
would be payable. Aggrieved, the writ petitioners filed the B
appeals.
j
Disposing of the appeals and the writ petitions, the
Court

HELD: Because of the Explanation to Item 7 of c
Article I of the Part D of First Schedule to the U.P. Motor
Vehicles Taxation Act, 1997, the view expressed by the
High Court is the correct one. Article II of Part D of the
First Schedule to Act operates when goods were carried
-~ and it does apply to passengers' luggage. [Para 9 and 12] D
[930-A; 933-C]

CIVIL APPELLATE JURISDICTION : Civil Appeal No.
3325 of 2009.

From the Judgment & Order dated 28.8.2000 of the High E
Court of Judicature at Allahabad in Civil Misc. Writ Petition No.
-'. 1157 of 2000.
;
WITH
F
C.A. No. 3326/2009, 3327/2009, 3328/2009, 3329/2009,
3330/2009, 3331-3332/2009 W.P.(C) No. 40/2007, 39/2007.

Rani Chhabra, Pradeep Misra, Sooraj Singh and Daleep
Dhyani for the Appellant.
G
....-+ S.K. Dwivedi, AAG, R.K. Gupta, Rajiv Dubey, Kamlendra
Mishra and Jatinder Kumar Bhatia for the Respondents.

The Judgment of the.Court was delivered by

H

\
928 SUPREME COURT REPORTS [2009] 8 S.C.R.

.'
A DR. ARIJTI PASAYAT, J. 1. Leave granted.
2. Challenge in these appeals is to judgment of a Division
Bench of the Allahabad High Court. Several Petitions were
..
disposed of by a common judgment and the writ petitions were
dismissed. The writ petitioners had questioned the vires of
B
Article II of Part D of the First Schedule of the Uttar Pradesh
Motor Vehicles Taxation Act, 1997 (hereinafter referred to as
the 'Taxation Act'). Order dated 30.10.2000 passed by the t
Transport Commissioner, U.P., Lucknow was also questioned.
The High Court noted that in the meeting held on 20.4.1999
c decision was taken by the Transport Commissioner not to
realize the Additional Tax at the rate of Rs.45/- per metric ton
as provided under Article II of Part D of the First Schedule of
the Taxation Act. By order dated 30.10.2000 the Transport
Commissioner had informed all his subordinate authorities that
D the decision had since been revoked and tax in accordance -{.

with.law was to be realise<...

3. According to the writ petitioners they were Stage
Carriage Operators, they have own buses and operate them
E on the strength of permanent Stage Carriage Permit granted
in their favour by the Regional Transport Authority. Prior to the
commencement of the Taxation Act, taxes were realised from
).
the transport operators under the provisions of different
enactments enacted i.e. United Provinces Motor Vehicle
Taxation Act, 1935, Motor Gadi (Yatri Kar) Adhiniyam, 1962 and
F
U.P. Motor Gadi (Maal Kar) Adhiniyam, 1963.

4. The Taxation Act replaced the aforesaid three acts and
it became operative from 9.11.1998. The writ petitioner
contented that they had paid road tax under Section 4 of Uttar
G Pradesh Motor Vehicle Taxation Act, 1935 (in short the 1935
Act') which was replaced by Section 4 of the Taxation Act. They +-..-
had paid a tax at the rate of Rs.2015/- per quarter inclusive of ·
Rs.45 for the luggage of passengers in respect of 55 seater
vehicle. With the coming into force of the Taxation Act the
H Authorities started demanding additional tax at the rate of
PRAHLAD SINGH & ANR. v. STATE OF U.P. & ORS. 929
[DR. ARIJIT PASAYAT, J.]

.. ~' Rs.45/- for every metric ton on the gross vehicles weight of the
vehicle or part thereof in terms of Article II of Part D of the First
Schedule of the Act. On protest being raised by the transport
operators a decision was taken by the Transport Commissioner
A

on 20.4.1999 and· direction was issued to the subordinate
authorities to obtain affidavit from the Stage Carriage operator B
to the effect that they do not carry goods in their vehicle except
j the personal luggage of the passengers and on filing of such
affidavit the tax demanded under the new provision shall not
be realised from them.

5. The High Court held that in a vehicle which is covered
c
by the Stage Carriage Permit, luggage of the passengers as
.....,,. also the goods are permitted to be carried. The only restriction
is that the weight of goods and passengers luggage and that
of the passenger including the weight of unladen vehicle should
->- not exceed· the gross vehicle's weight. D

6. The High Court after referring to various provisions
observed that Article II is attracted when passenger!>' goqds
whether it is personal luggage of the passenger or not is
transported in the vehicle. Thus the State Carriage Permit E
holder were liable to pay tax under Article II of Part D of the
~
First Schedule of the Act. Therefore, the Writ Petitions were
dismissed. It was the stand of learned counsel for the appellants
•, ' that since goods have not been defined under the Taxation Act,
in view of the specific provisions of the Taxation Act i.e. Section F
2(o) recourse to the definition given in the Motor Vehicles Act,
1988 (in short the 'Act') has to be taken.

7. It was submitted that there is no scope for carrying any
goods of the passengers and in fact they had not carried any
such goods in the Stage Carriage, except the personal luggage G
:.- ... and, therefore, they were not liable to pay any tax under the
aforesaid Article.
8. Learned counsel for the re~pondent-State on the other
hand supported the judgment of the High Court. H
I
930 SUPREME COURT REPORTS [2009] 8 S.C.R.

- A 9. Some of the relevant provisions of the Taxation Act read
as follow:

"U.P. MOTOR VEHICLES TAXATION ACT. 1997:
'
1

..
2. Definitions. In this Act,
8
a) "additional tax" means a tax imposed under Section 5
or Section 6 in addition to the tax imposed under Section t
4.

d) "goods carriage" means motor vehicle
c constructed or adapted wholly or partly for use for
the carriage of goods, or any motor vehicles not so
constructed or adapted when used for the carriage ...,.
of goods either solely or in addition to passenger,
and includes a trailer but does not include a motor
D ~-
cab, or a maxi cab or a contract carriage or stage
carriage where such contract carriage or stage
carriage is authorised to carry a limited quantity of
load;

E e) "limited quantity of load" means such quantity of
load, not exceeding the limits determined by the
Transport- Commissioner, Uttar Pradesh, as the ).
Registering Authority may specify in the registration
certificate in respect of a vehicle.
F
.... ....
(1) "tax" means any tax levied under section 4;

(o) words and expressions used but not defined in this Act
G and defined in the Motor Vehicles Act, 1988, shall have
the respect meaning assigned to them in that Act," +.- ;,
4. Imposition of Tax -

(1) Save as otherwise provided in this Act or the rules
H made thereunder, no motor vehicle other than a transport
PRAHLAD SINGH & ANR. v. STATE OF U,P. & ORS. 931
[DR. ARIJIT PASAYAT, J.]

~ vehicle, shall be used in any public place in Uttar Pradesh A
unless a one-time tax at the rate applicable in respect of
,.. such motor vehicle, specified in Part · B' of the First
Schedule has been paid in respect thereof;

Provided that in respect of an old motor vehicle, instead
8
of a one-time tax, annual tax at the rate applicable to such
motor vehicle as specified in Part 'C' of the First Schedule
:J may be-paid.

(2) Save as otherwise provided by or under this Act no
transport vehicle shall be used in any public place in Uttar C
Pradesh unless a tax at the rate applicable to such motor

- vehicle, as specified in Part
been paid in respect thereof.
·o· of the First Schedule has

(3) Where any motor vehicle other than a transport vehicle,
in respect whereof one-time tax has been paid, is
D

operated as a transport vehicle, the tax payable under this
Act on such transport vehicle shall be payable."

Sub-Section (2) of Section 4 further provides that tax is to
paid at the rate specified in Part D of First Schedule. E
Under Part D Petitioners are required to pay in Article I
Item 7 as they have been carrying more than 35 passenger.

.
The said item No.7 for ready reference reads as follows:

F
1 2 3

"7 With seating capacity for more than
exclusive of the driver;

a) if intended for use on "A-Class" route Rs. 1115.00+ G
Rs. 45.00 for

Every seat in excess of thirty
five seats.
H

\
932 SUPREME COURT REPORTS [2009] 8 S.C.R.

A b) if intended for use on "B-Class route Rs. 900.00 +
Rs. 35.00 for
.
'

every seat in excess ""
of thirty five seats.
Explanation:- For the purpose of this Article, fifty
B
percent of the sancticned standing
capacity, if any, shall reckoned as
additional seating capacity. Vehicles 't--
plying for the conveyance of Limited
number of passengers and the trans
c Port of a limited quantity of passengers'
Goods, the tax payable under Article I
in Respect of the authorized number of
Passenger seats in addition to tax for .....
Every metric ton of the registered laden
D Weight of the vehicle, or part thereof," 45.00 ~-

UI

IV

E Explanation: Where any motor vehicle is used for various
purposes or in such a manner as to cause it
to be taxable more than one Article of this
Schedule, the tax payable shall be at the
,..
highest appropriate rate."
F 10. The only question that needs to be adjudicated is
whether Article II has application. It is the stand of the appellants
that under Part D, the appellants are required to pay in Article
I item VII as they have been carrying more than 35 passengers.

G 11. It needs to be noted that in Writ Petition No. 6266 (M/
B) of 2000, it has been observed by the High Court as follows:
+--- ,
.. "it is therefore, clarified that if the vehicle of the petitioners
is covered under more than one Articles of Part D of the
1st Schedule of the Act, then the highest rate mentioned
H
PRAHLAD SINGH & ANR. v. STATE OF U.P. & ORS. 933
[DR. ARIJIT PASAYAT, J.]

1-' under either of the Article would be payable. To give an A
illustration, if a vehicle falls under Article I and also under
Article II of part D of the 1st Schedule, then the amount of
tax payable under both the Articles have to be calculated
and the amount which is higher shall be payable. The
amount payable by a vehicle owner, if his vehicle under B
Article II, would be higher than the amount payable under
_i Article I as under Article II the amount which is payable is
in addition to the amount payable under Article I and not
limited to only Rs.45/- per ton."

12. In our opinion because of the explanation the view
c
expressed as noted above indicates the correct view, Article II
operates when goods are carried and it does apply to
passengers' luggage.

->- 13. The appeals are accordingly disposed of. There shall D
be no orders as to costs.

R.P. Appeals and writ Petitions disposed of.
"t.

j