Judgment

MATHEW, J.:- The only point in these appeals is whether the High Court was right in striking down the two G. Os, namely, G. O. M. S. 923 Home dated 19-4-1969 and G. O. M. S. 434 Home dated 27-2-l970 for the reason that the levy of tax under the G.. Os. was not an exercise of the power of taxation but was a measure for eliminating competition of the permit-holders of contract carriages.

2. We have already indicated in our judgment in G. K. Krishnan v. State of Tamil Nadu, (Reported in AIR 1975 SC 583) that if the government has power to impose the tax the motive or the purpose with which that power has been exercised is quite immaterial. Section 17 gives power to the State Government to amend Schedule II or III by rules. A draft of any rule-has to be laid on the table of the Legislative Assembly and the rule shall not be made unless the Assembly approves the draft. Neither the draft of the rule approved by the Assembly nor the rule as framed by Government contained the purpose of imposing a higher tax on contract carriages. It was only when the rule was published that the purpose of imposing the tax viz., to eliminate the unhealthy competition from contract carriages, was add