JUDGMENT

Shah, J.-The High Court of Himachal Pradesh by judgment and order dated 10-12-1990 allowed Civil Writ Petitions No. 58 of 1978 etc. filed by the respondents challenging the validity of the provisions of the H.P. Taxation (On certain Goods carried by Road) Act, 1976) No. 34 of 1976) (hereinafter referred to as "the 1976 Act") and held that the said provisions were unconstitutional and invalid. The Court held thus:--

"We have seen earlier that by the impugned provision, there is a direct levy upon the carriage of goods by road and water ways. It is not the case of the respondent State that the levy was compensatory or regulatory in character. In any case, we do not find any mention in the reply filed by the State of any facts which may bring the levy in either of the two categories.

On the averments made in the petition, noticed by us earlier, which have not been effectively denied on behalf of the State, there is hardly any scope for saying that the levy does not amount to restriction within the meaning of Article 301 of the Constitution of India. The levy could only have been saved, in case the restriction brought about by it purported to be in public interest, and that too,