The court upheld the imposition of tax on passengers and goods under S. 3 of the Act, finding it reasonable and in public interest under Art. 301 and Art. 304 (b) of the Constitution.

( 1 ) THE petitioner in these Writ petitions are operators of motor vehicales in the State of Karnataka under permits issued by the concerned authorities under the provisions of the Motor Vehicles Act. Some of them are plying stage carriages,. some are owners of contract carriages and some are running public carriages. The petitioners originally had questioned in these writ petitions the validity of some of the provision of the Karnataka Motor. Vehicle (Taxation on Passengers and Goods) Act, 1961 (hereinafter referred to as the 'act'), as amended by the Karnataka Motor Vehicles (Taxation on Passangers and Goods)' (Amendment) Ordinance, 1974 (hereinafter referred to as the 'ordinance' ). During the; pendency of these writ petitions, the Ordinance was replaced by the Karnataka Motor vehicles (Taxation on Passengers arid Gopds) (Amendment) Act, 1974 (hereinafter referred to as the 'amending Act' ). On the, applications made by the petitioners we have permitted them to question the validity of the provision's of the Act as amended by the amending Act in these writ petitions. 2. Since common questions of law and facts arise for consideration in these cases, we dispose them of by this common, order. 3. In exercise of its powers under Entry 56 of List IX of the Seventh schedule ot the Constn, the State Legislature passed the Act in, thus year 1961, by which' the Legislature levied taxes on passengers and goods carried by stage carriage and public carriers. The expression 'stage Carriages' includes 'contract Carriages' also as per its definition in S. 2 (10) of the Act. S. 3 of the Act, immediatekly prior to the promulgation of the, ordinance, read as follows :"3. Levy of tax on passengers and good- (1) On and from the date of the Commencement of this Act, there shll be levied and paid to the State-Government a tax- (1) on all passengers, luggage and gopds carried by stage carnages, at such rate as would yreld an amount equal to fifteen percentum oi the amount of tares and freights payable to, the; operator of a s. age carriage; provided that if the operator levies and Collects from the passengers lares and Ireights inclusive, of the tax under this sub-section, the operator shall pay to the State Govt on account of the tax, one seventh ot the total amount of fares and freights inclusive of tax collected by him from the passengers; and (ii) on all goods transposed by public carrier vehicles at the rate of five naye, paise in the rupee on. the freights payable, to the operator of a public carrier vehicle; provided that if the operator levies and collects in respect of any goods transported freights, inclusive of the tax, under this sub-secuon, the operator shall pay to, the State Govt on account of the tax, 4. to percent; of the total amount of freights inclusive of tax collected by him;"the Legislature permitted the operator to compound his liability to pay the tax under S. 3 of the Act, mother manner prescribed by S 14 of me act read with the Schedule of the Act, on payment of a certain amount by way oi composition fee. S. 14 of the Act reads as follows :"14. Composition of tax.- (1) The, Tax Officer may on application by the, operator permit him in the first instancy ana under the conditions specified in the Schedule, to compound the, tax asstessable on him under this Act, by paying in lieu thereof a fee fixed in the manner specified in the Schedule;. (2) No operator who has beien permitted to pay a fee by way ot composition under sub-sec (1) shall collect any amount by way ojrtax during the period to which such composition applies. (3) If any operator collects any amounts by way of tax in contravention of the provisions of sub-sec (2) or if any other operator collects in respect of passengers, luggage and goods carried oy any stage carriage or public carrier vehicle in excess of the amount of lax payable by him, the amounts so collected shall stand forferted to, the state Govt, and such operator shall within the pre