JUDGMENT :

A.M. Khanwilkar, J.

1. These appeals involve challenge to the constitutional validity of sub-sections (7) and (8) of Section 4 [introduced by way of the Kerala Motor Vehicles Taxation (Amendment) Act, 2005,¹[for short, “the Amendment Act”] in the Kerala Motor Vehicles Taxation Act, 1976,²[for short, “the 1976 Act”], Section 15 of the 1976 Act and Section 8A of the Kerala Motor Transport Workers’ Welfare Fund Act, 1985,³[for short, “the 1985 Act”], inserted by Act 23 of 2005.

2. The thrust of the challenge is on the ground that the State Legislature by way of stated amendments to the welfare legislation has effectively bootstrapped the obligation to make contribution to the workers’ welfare fund with the obligation to pay tax for operating motor vehicles. In other words, the welfare legislation is intertwined with the compensatory legislation by the impugned Amendment Act of 2005 and together they substantially encroach and override the relevant provisions of the Central legislation i.e., the Motor Vehicles Act, 1988,⁴[for short, “the 1988 Act” or “the Central Act”, as the case may be] to paralyse the Stage and Goods Carriage Operation or to undermine the effectiveness of the transport permit provided under the 1988 Act.

3. The 1976 Act was enacted by the State Legislature when the erstwhile Motor Vehicles Act, 1939,⁵[for short, “the 1939 Act”] was in force. It was so enacted under Entry 56 (Taxes on goods and passengers carried by road or on inland waterways) and Entry 57 (Taxes on vehicles, whether mechanically propelled or not, suitable for use on roads, including tramcars subject to the provisions of entry 35 of List III) of List II of the Seventh Schedule to the Constitution. Section 15 of the 1976 Act postulates that non-payment of tax due in respect of a transport vehicle within the prescribed period would render the transport permit for such vehicle ineffective from the date of expiry of the said period until such time as the tax is actually paid. The State of Kerala had sought Presidential assent for the 1976 Act and the same was granted on 25.3.1976. However, in due course, the 1939 Act was repealed by the Parliament and it was replaced by the 1988 Act, introducing a new regime to consolidate and amend the law related to motor vehicles. This Act (the 1988 Act) was enacted by the Parliament under Entry 35 of List III (Mechanically propelled vehicles including the principles on which taxes on such vehicles are to be levied). Chapter V of the 1988 Act deals with control of transport vehicles, including the procedure of Regional Transport Authority in considering application for stage carriage permit and the duration and renewal of permits. According to the appellants, the 1988 Act exhaustively covered all aspects of grant, control and validity of transport permits. Further, the State of Kerala did not seek Presidential assent in respect of the State Act i.e., 1976 Act, after coming into force of the Central Act, despite the repugnancy between the existing State Act and the newly introduced the 1988 Act.

4. Furthermore, in the year 2005, the State of Kerala amended the 1976 Act and the 1985 Act thereby introducing sub-sections (7) and (8) of Section 4,⁶[4. Payment of tax and issue of license.-

(1) The Tax levied under Sub Section (1) of Section 3 shall be paid in advance with such period and in such manner as may be prescribed, by the registered owner or person having possession or control of the Motor Vehicle, for a quarter or year, at his choice, upon a quarterly or annual licence to be taken out by him.

Provided that, in the case of fleet owner, the Government may direct that the tax shall be paid in monthly instalments before such date, in such manner and subject to such conditions, as may be specified in the direction:

Provided further that where the tax payable in respect of a motor vehicle other than a motorcycle (including a motor scooter and cycle with attachment for propelling the same by mechanical power) or