Back
2025 Supreme(Raj) 1956
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
VINIT KUMAR MATHUR, ANUROOP SINGHI, JJ.
Khuman Singh S/o Smrith Singh - Appellant
Versus
State of Rajasthan - Respondent
D.B. Civil Writ Petition Nos. 9901, 9997, 10020, 10068, 10072, 10500, 10522, 10526, 10581, 10781, 11080, 11535, 11536 of 2023, D.B. Civil Writ Petition Nos. 11672, 11685, 11722, 11759, 11761, 11779, 11800, 11801, 11803, 11805, 11809, 11841 of 2025
Decided On : 22-08-2025
For the Appellants : Saurabh Maheshwari, Deven Maheshwari, Manvendra Singh Rathore, Ashok Godara, Saumya Choudhary, Manish Bhunwal, Sajjan Singh Rajpurohit
For the Respondents: Sajjan Singh Rathore, Yuvraj Singh Rathore, B.L. Bhati, Deepak Chandak
The State Government is authorized to categorize motor vehicles for tax purposes based on body types without violating statutory provisions.
Headnote:(A) Rajasthan Motor Vehicles Taxation Act, 1951 - Sections 3 and 4 - Motor Vehicles Act, 1988 - Sections 2(7), 2(29), and 41 - Amendment of taxation category for motor vehicles - Challenge to the creation of a new taxable category ‘Sleeper Bus’ under amended Notification dated 24.02.2021 - Court finds that State Government has inherent authority to categorize vehicles for tax purposes; no violation of statutory provisions found. (Paras 21-39)
(B) Taxation - Validity of tax classification - Exemptions and the principle of reasonable classification have been duly observed; the classification does not contravene constitutional provisions. (Paras 24-39)
Facts of the case:
The appellant, a registered owner of a sleeper bus, challenged an amendment introducing a new category for tax which excluded him from applicable exemptions. He argued it was arbitrary and unilateral. (Para 4)
Findings of Court:
The court upheld the amendment, affirming the State's powers to impose taxes and create classifications based on body type under the existing law. (Paras 26-39)
Issues: The primary issues addressed were whether the State could create a new taxable category based on body type and if the classification was arbitrary or contrary to the law. (Paras 21-22)
Ratio Decidendi: The court concluded that the State acted within its authority in classifying vehicles for taxation based on body types and the creation of a ‘Sleeper Bus’ category is not ultra vires, preserving the existing legal framework. (Paras 27-39)
Result: Writ petitions partly allowed; demand notices quashed.
| Table of Content |
|---|
| 1. final ruling on the petition and related cases. (Para 1 , 2 , 3 , 4 , 39 , 40) |
| 2. arguments against the tax amendment's validity. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14) |
| 3. respondent's justification for tax classification. (Para 15 , 16 , 17 , 18 , 19 , 20) |
| 4. court's legal framework assessment. (Para 21 , 22 , 23 , 24 , 25 , 26) |
| 5. validation of sleeper bus category as tax classification. (Para 27 , 28 , 29 , 30 , 31) |
| 6. court's reinforcement of state authority in taxation. (Para 32 , 33 , 34 , 35 , 36 , 37) |
ORDER :
D.B. Civil Writ Petition No. 11535/2023 :
1. The present writ petition raises a challenge to the amendment made by Transport Department, Government of Rajasthan by Notification dated 24.02.2021, whereby, a new category at S.No.7(a)(iii) has been inserted in the existing Notification dated 10.07.2019. Challenge has further been made to the notice issued by the respondents in Form M.T.R. dated 24.03.2023 and demand notice issued in Form M.T.Q. dated 21.06.2023. A further declaration has been sought to the effect that the petitioner be assessed and taxed as per S.No.7(a)(ii) of Notification dated 10.07.2019 read with notification dated24.02.2021 and be granted exemption thereunder.
2. Brief facts of present writ petition relevant for consideration of the above challenge are that the petitioner is the registered owner of a motor vehicle bearing Registration No. RJ-24 PA 4016, registered on 15.06.2017 as a ‘Bus’ with body type ‘Sleeper’, and operating under a valid contract carriage permit for plying vehicle exclusively within the Revenue Divisional Limits. Vide Notification dated 10.07.2019 issued under the RAJASTHAN MOTOR VEHICLES TAXATION ACT , 1951, motor vehicle tax was prescribed on the basis of the class of vehicle and seating capacity, with ‘body type’ considered only for computation purposes, and the petitioner’s vehicle accordingly fell under Serial No. 7(a)(ii) of the said Notification.
3. By Amendment-cum-Exemption Notification dated 24.02.2021, the State Government substituted Serial No. 7(a) of the 2019 Notification, altered tax rates, and introduced a new category at Serial No. 7(a)(iii) ‘Sleeper Bus’, thereby imposing a separate levy based on body type, without extending the exemptions as made available to Serial Nos. 7(a)(i) and 7(a)(ii). A further Amendment Notification dated 23.02.2022 enhanced the exemption for categories under Serial Nos. 7(a)(i) and 7(a)(ii) from 50% to 70%, but continued to exclude category at Serial No.7(a)(iii) ‘Sleeper Bus’ from such benefit. Even subsequent to these amendments, the petitioner was taxed under S.No. 7(a)(ii) and the tax was accordingly paid by him. However, vide impugned notices dated 24.03.2023 and 21.06.2023 the impugned demand towards tax was raised by the District Transport officer (Taxation Officer) for the period 01.04.2022 to 30.06.2023. The petitioner has challenged the vires of the amendment introducing Serial No. 7(a) (iii) ‘Sleeper Bus’, contending that the State Government lacked authority to create a new class of motor vehicle under the guise of taxation and the same is ultra vires to the MOTOR VEHICLES ACT , 1988 and contrary to the scheme of the original Notification, and that the impugned demand is without jurisdiction, in violation of the MOTOR VEHICLES ACT , 1988, and in breach of the principles of natural justice. Hence the present writ petition has been filed.
4. Learned counsel for the petitioner submitted that the impugned amendment to the Notification dated 10.07.2019 made vide Notification dated 24.02.2021, whereby, a new category ‘Sleeper Bus’ was inserted at Serial No. 7(a)(iii), is arbitrary, illegal and without jurisdiction. He submitted that under the RAJASTHAN MOTOR VEHICLES TAXATION ACT , 1951, the State Government is empowered only to levy motor vehicle tax on the basis of the class of motor vehicles and their seating capacity as per the parent Notification, whereas the classification of motor vehicles is w
