JUDGMENT :

A.K. Sikri, J.

A common question of law which arises in all these appeals pertains to levy of tax by the respondent No.1 State under Section 6 of the Bihar Motor Vehicles Taxation Act, 1994 (hereinafter referred to as the ‘Bihar Act’) on the chasis of the motor vehicles manufactured by the appellants during the period these chasis are in their “possession”, i.e., before they are delivered to the dealers and/or the purchasers of the said vehicles.

2. The Bihar Act envisages three kinds of taxes, namely:

(a) on registered vehicles under Section 5 of the Act;

(b) on vehicles held under trade certificates as per Section 6 of the Act; and

(c) in respect of vehicles registered, where the registration is temporary, a marginal tax under Section 7(4) of the Act.

3. As would be noticed, tax under Section 5 of the Bihar Act is paid by the ultimate buyers who, on purchase of vehicles and becoming owners thereof, get these vehicles registered in their names. After the manufacture of the vehicle and before it is sold to the ultimate buyer to use the said vehicle, a temporary registration