The appellants/petitioners must provide precise formulation of the ground of challenge and furnish requisite details before the State could be called upon to submit quantifiable and measurable data justifying the impugned rate.

ORDER :

S.H. Kapadia, J. - The short question which arises for determination in this batch of civil appeals and special leave petitions concerns challenge to the Constitutional validity of Tamil Nadu Motor Vehicles Taxation (Amendment) Act, 1998, by which initially the rate of tax in respect of contract carriage stood increased from Rs. 1500/- per seat per quarter to Rs. 2000/- per seat per quarter and subsequently the said rate stood enhanced from Rs. 2000/- per seat per quarter to Rs. 3000/- per seat per quarter vide Notification No.1184 dated 30.11.2001 with effect from 1st December 2001.

2. The basis of the challenge rests on the uneven burden placed on the owners of contract carriage vis.-a-vis. stage carriage. Broadly it is contended that there is no rational in the imposition of the levy, that tax is imposed indiscriminately, that it is levied to cross-subsidize stage carriage and that uneven burden has been placed on the owners of contract carriage which has no nexus with the services or amenities provided.

3. Generally in a matter of this nature the quantifiable data forms the basis of the challenge. At the initial stage when the petition is filed in such cases there has got to be a precise formulation of the ground of challenge from the side of the appellants/petitioners based on some statistical data as to disproportionality of the rate of tax. It is only thereafter that the burden will shift on to the State to submit quantifiable and measurable data.

4. In the present case we find that the initial burden on the appellants/petitioners itself has not been discharged in the sense that the petition filed before the High Court was very sketchy. A challenge of this nature requires the appellants/petitioners to furnish greater details before the State could be called upon to submit quantifiable and measurable data.justifying the impugned rate. Ultimately, it is the State which has to meet the allegations made in the writ petition and if those allegations made in the writ petition are vague, inaccurate or insufficient then it would not be possible for the State to submit its reply/data to the Court.

5. One more aspect in this case also needs to be mentioned. It has been argued before us that the tax in question is a compensatory tax. Certain judgments of this Court are also relied upon in this regard, the latest being the judgment in the case of Jindal Stainless Ltd. (2) and Another v. State of Haryana and Others reported in (2006) 7 SCC 241.

6. In our view, this repeated increase in the rate of tax, particularly the incidence of which is more on the contract carriage vis.-a.vis. stage carriage raises question of public importance. At the same time the State can certainly rely upon the data available to show cross subsidization, if it so exists in a given case, by which stage carriage gets subsidised in public interest.

7. Keeping in mind the gamut of the dispute involved, we are of the view that we cannot interfere with the impugned judgment of the High Court, particularly when the pleadings at the initial stage were insufficient.

8. Realising this difficulty Mr. R. Venkataramani, learned senior counsel appearing on behalf of the appellants/petitioners fairly stated that he would seek permission of this Court to withdraw the civil appeals and special leave petitions with liberty to file proper writ petition in the High Court giving requisite details and available data. Normally, we would not have granted such permission. However, as stated above, questions of public importance arises in these matters, particularly in the context of the principles of proportionality under Article 14 of the Constitution and the later development of law as indicated by this Court in the case of Jindal Stainless Ltd. (Supra).

9. In the circumstances we permit the appellants/petitioners herein to withdraw the civil appeals and special leave petitions with liberty to file a proper writ petition, if so advised. We make it clear that we do not find any