Judgment

MITTER, J.:- These appeals are directed against the imposition of taxes under the Andhra Pradesh Motor Vehicles Taxation Act (V of 1963). The appellant in the first two appeals is the Automotive Manufacturers (P) Ltd., a dealeer, among other automobile equipment, of motor chassis, motor vehicles etc. received by it from manufacturers outside the State of Andhra Pradesh. The first appeal arises out of a writ petition against the levy in respect of motor chassis delivered to it by Ashok Leyland Ltd. of Madras. These chassis are said to be driven by transport contractors of the manufacturers themselves under temporary certificates of registration under the Motor Vehicles Act and delivered to the appellant at Secunderabad. The second appeal by the same appellant arises out of a writ petition challenging the levy on jeeps, jeep truck chassis, jeep station wagons of the manufacture of Mahindra & Mahindra Ltd. of Bombay, besides pick-up vans, scooters etc. from Bajaj Auto Ltd. of Poona. The scooters are carried to Secunderabad in lorries. The appellants in Civil Appeal No. 2182 of 1968 are Ashok Leyland Ltd. Madras who transport motor chassis by road from their factory at Ennore to dealers in various parts of India, State Transport Undertakings etc. According to their writ petition, these chassis have to traverse long distances in the State of Andhra Pradesh every month destined for delivery not only in the said State but also beyond the same. These chassis are driven from Ennore to their respective destinations in the several States under temporary certificates of registration obtained from the Madras State on payment of requisite tax in that behalf, such certificates of registration under Section 28 of the Motor Vehicles Act being effective throughout India.

2. The appellants case is that the levy is illegal and unconstitutional. The grounds urged in the writ petitions filed in the High Court inter alia are as follows:-

1. Section 3 of the Act only authorises a levy of tax on a motor vehicle "used or kept for use in a public place in the State". There can be no user or keeping for use of the chassis of a motor vehicle as a motor vehicle unless a body is attached to it. In the case of vehicles other than chassis such user or keeping for use in a public place can only take place when they are put to the required user or kept for use by the customers for whom the vehicles are transported in the manner contemplated by the Motor Vehicles Act.

2. Section 9 of the Act exempts from payment of tax chassis of a motor vehicle "driven to another place in order that a body may be attached to it". As the chassis are invariably driven to their respective destinations in order that bodies may be attached to them, they come directly under the notification of exemption issued by the State Government.

3. As the chassis or the vehicles are covered by temporary certificates of registration taken out by the manufacturers entitling transportation throughout the territory of India, the impugned levy operates as an impediment to the free trade and commerce of the petitioners in violation of Article 301 of the Constitution.

3. The High Court turned down all the contentions. Hence the appeals.

4. Before this Court Mr. Chagla for the appellants limited his first and second contentions to the cases of chassis only. His first contention was that Section 3 of the Act was not applicable to the appellants.

5. Sub-section (1) of that section runs as follows:-

"The Government may, by notification from time to time, direct that a tax shall be levied on every motor vehicle used or kept for use, in a public place to the State".

Under sub-section (2) of Section 3 the notification issued under sub-s. (1) is to specify the class of motor vehicles on which, the rates for the periods at which and the date from which, the tax shall be levied.

6. A motor vehicle has not been defined in this Act but under Section 2 (j) of the Act it is to have the same meaning as is assigned to