JUDGMENT - P.S. PATANKAR, J.:---The petitioners by this petition filed under Article 226 of the Constitution of India are challenging the provisions of the Maharashtra Tax Laws (Levy, Amendment and Repeal) Laws, 1989 (for short, the Laws of 1989) and the Notification issued by the State Government dated 1-4-1989. By the Laws of 1989 various enactments came to be amended. They included the Bombay Motor Vehicles Tax Act, 1958 and the Bombay Motor Vehicles Tax (Taxation of Passengers) Act, 1958. The Notification dated 1-4-1989 came to be issued in exercise of the powers conferred by sub-section (1) of section 3 of the Bombay Motor Vehicles Tax Act, 1958. In this petition, we are concerned with the taxation for the petitioners vehicles for the period 1-4-1989 to 31-8-1991.

2. Petitioner No. 1 is a company incorporated under the Companies Act, 1913. It owns a fleet of 52 buses which are utilised for the purpose of transport of company employees as a welfare measure. The buses are Non A/C and can carry more than 12 passengers. The petitioners are not recovering any charges from them. The buses are not meant for commercial purpose and no fare is recovered.

3. For appreciating the contentions, we shall first give connected provisions of law.

4. The Bombay Motor Vehicles Tax Act, 1958 came to be introduced to consolidate and amend the law relating to taxation of motor vehicles in the State and for providing certain other matters. It defines motor vehicle as contained in the Motor Vehicles Act, 1939 (Now replaced by the Motor Vehicles Act, 1988). As per section 3 thereof, which is a charging section, tax is to be levied on all motor vehicles used or kept for use in the State at the rates fixed by the State Government by notification published in the official gazette, but they shall not exceed the maximum rates specified in the First Schedule. The Motor Vehicles Act, 1939 classifies the motor vehicles as stage carriage i.e. (1) carrying passengers from one stage to another which is done by public undertakings like the B.E.S.T. or the State Transport and (2) contract carriage i.e. carrying passengers from one point to another without facility to disembark in between.

Section 2(3) defines "Contract carriage" as a motor vehicles which carries a passenger or passengers for hire or reward under a contract. Section 2(29) defines "stage carriage" as a motor vehicle carrying or adapted to carry more than 6 persons excluding the driver which carries passengers for hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for stages of the journey and includes such a carriage or other omnibus when used as a contract carriage within the meaning of the Motor Vehicles Act, 1939. Section 2(25) defines "Public Service Vehicle" to mean a motor vehicle used or adapted to be used for the carriage of passengers for hire or reward and includes motor cab, contract carriage and stage carriage.

5. The Motor Vehicles Act, 1988 repealed the Motor Vehicles Act, 1939. Section 2(7) thereof defines "Contract carriage". It is the same as contained in the Act of 1939. Section 2(4) defines "Stage carriage" and the definition is the same as in the Act of 1939. Section 2(35) defines "Public Service Vehicle". The definition is more or less the same as in the Act of 1939. However, section 2(33) defines "private service vehicle" to mean a motor vehicle constructed or adapted to carry more than 6 passengers, excluding the driver and ordinarily used by or on behalf of the owner of such vehicle for the purpose of carrying passengers for, or in connection with his trade or business other than for hire or reward, but does not exclude a motor vehicle used for public purposes. This definition came to be added for the first time.

6. The Bombay Motor Vehicles Act, (Taxation of passenger), 1958 came to be introduced for levying tax of passengers carried by road in certain classes of motor vehicles such as public service vehicles and private ser

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