Judgment

GROVER, J. : These appeals by certificate from a judgment of the Andhra Pradesh High Court which disposed of several petitions under Art. 226 of the Constitution including the petitions filed by the appellants involve the question of the constitutionality of the Andhra Pradesh Motor Vehicles (Taxation of Passengers and Goods) Amendment and Validation Act, 1961, Andhra Pradesh Act XXXIV of 1961.

2. The appellants hold permits either for state carriage or for public carriers issued under the Motor Vehicles Act 1939. They ply these vehicles on different routes in the State as also on some of the inter-State routes. They were subject to tax levied under the Madras Motor Vehicle Taxation Act, 1931.

3. In 1952 the Madras Motor Vehicles (Taxation of Passengers and Goods) Act, 1951 (ACT XVI of 1952) was enacted by which every operator had to pay Rs. 12.50 per seat per quarter or 37 nP. per seat per mile over and above the tax payable under the Madras Motor Vehicles Taxation Act, 1931. Under that Act the operators were paying tax of Rs. 30 per seat per quarter. The validity of Act 16 of 1952 was challenged before the Madras High Court. In Mathurai Pillai v. The State of Madras, 1954-1 Mad LJ 110 its validity was upheld except as to the proviso to section 3 of the Act. After the formation of Andhra Pradesh State the Governor promulgated an Ordinance amending Madras Act 16 of 1952 in the light of the above judgment. The provision contained in the Ordinance were subsequently reenacted as President s Act 11 of 1954. The operators, therefore, paid taxes imposed under Act 16 of 1952 as amended in the State of Andhra Pradesh. By means of Act 21 of 1959 the legislature of Andhra Pradesh amended Act 16 of 1952. Section 3 of Act 16 of 1952 as amended read as follows :

"In cl. (a) of Sub-Rule (i) of Rule 1 in the schedule to the Principal Act, for the words 37 np. per seat per year per mile the words Rs. 1.48 np. per seat per year per mile and for the words Rs. 12.50 np. per seat per quarter the words Rs. 50 per seat per quarter shall be substituted and clause (b) of the said Sub-rule for the words Rs. 22.50 np. per month the words Rs. 45 per month shall be substituted."

The validity of the Amending Act 21 of 1959 was challenged by means of writ petition before the High Court. A Division Bench struck down the impugned provisions as unconstitutional and ultra vires on the ground that since that Act imposed a restriction on the operators freedom of trade and commerce under Article 301 of the Constitution the previous sanction of the President was necessary under the proviso to Art. 304 (b) and because that had not been obtained the Act was legally inoperative: Venson Transports v. State of Andhra Pradesh, (1961) 1 Andh WR 351 Subsequently Act 34 of 1961 was enacted after the sanction of the President was obtained to the Bill under the proviso to Article 304 (b). It validated two Acts, namely, Act 21 of 1959 and Act 22 of 1959 and also amended Act 16 of 1952 and substituted sub-s. (3) of S. 3 of that Act by a new sub-section. It further validated the realisation of the tax paid or payable and the fee paid or payable and other action taken under Act 21 of 1959 and Act 22 of 1959. It empowered the Government to levy additional tax at the rate of Rs. 50 per seat per quarter from May 8, 1959 to January 16, 1961. Thereafter from January 17, 1961 to November 3, 1961 the rate was fixed at Rs. 12.50 per seat per quarter. After the commencement of the Validating Act 34 of 1961 the rate was to be Rs. 37.50 per seat per quarter. This was to be operative till April 1, 1962 when the Act would cease to have any effect.

4. The validity and constitutionality of Validating Act 34 of 1961 were challenged by means of various petitions under Article 226 of the Constitution. It was sought to be contended before the High Court that the impugned legislation was not regulatory in character. The sole object was to augment the revenues of the State. This brought the stat