ORDER

1. These appeals filed by the State of Rajasthan raise questions relating to the constitutional validity of Section 4-B(3) of the Rajasthan Motor Vehicles Taxation Act, 1951 (hereinafter referred to as "the Act") and Rule 4-CC of the Rajasthan Motor Vehicles Taxation Rules, 1951 (hereinafter referred to as "the Rules") which make provision for levy of special road tax on a transport vehicle which is used without a valid permit or in any manner not authorised by the permit. By the impugned judgments the High Court has held that Section 4-B(3) is ultra vires the legislative powers conferred on the State Legislature and that Rule 4-CC which has been made to effectuate the said provision was also ultra vires the rule-making powers conferred on the State Government under the Act.

2. According to the High Court the imposition, though described as a tax, is, in substance, a fine for an alleged offence of plying the vehicle without a valid permit or in contravention of the conditions of permit and such a penalty cannot be treated as a part of regulatory or compensatory tax. On that view, the High Court has declared that Section 4-B(3) of the Act is ultra vires the powers conferred on