JUDGMENT

SARKARIA, J.:— Whether a motor vehicle passing through the territory of the State of Mysore on way to its destination in another State is a motor vehicle "kept" in the State of Mysore (now Karnataka) within the contemplation of Section 3 (1) of the Mysore Motor Vehicles Taxation Act, 1957 (hereinafter referred to as the Taxation Act), is the short question that falls for consideration in this appeal by special leave directed against a judgment, dated April 14, 1969, of the High Court of Mysore. The material facts bearing on the question are as follows :

2. The respondent, M/s. T. V. Sundaram Iyengar & Sons. Pvt. Ltd., whose registered office is in the State of Tamil Nadu, is a dealer in motor vehicles which are manufactured at Bombay. Some of those vehicles are sold in Mysore State, while others are sold outside Mysore State. But those vehicles which are sold outside the State of Mysore in other States passed through its territory under temporary registration number plates issued after receipt of token tax by the Bombay Motor Vehicles Authority. Such vehicles entered the State of Mysore at its border in Belgaum District and go out at its border in Kolar District, thus runni