The benefit of single point tax under an Inter-State Agreement is not negated by a delay in applying for counter-signature after transfer of permit, in the absence of a specific rule fixing a period of limitation for such application.

The prayer in the writ petition No. 2552 of 1995 is to issue a writ of certiorari calling for the records of the respondent in R. No. E-2/48055/94 and quash the demand notice dated 22-1-1995.

2. The petitioner in his affidavit filed in support of the writ petition states that he is operating a stage carriage TDP 5555 since replaced by PY-01 / B, 5979 on the inter-State route Marakkanam to Karayanaputhur. The permit of the said bus was originally held by one R. Ravi, son of Ramalingam, Kosapalayam, Pondicherry and the same was transferred in the name of the petitioner by the proceedings of the State Transport Authority, Pondicherry dated 13-4-1993. The said route finds a place in the Inter-State Reciprocal Agreement dated 19-4-1985 as Item No. 69, Appendix-II of Part A. Earlier the erstwhile permit holder preferred W.P. No. 13958 of 1992 against the proceedings of the respondent in R. No. 44015/ E2/ 84, dated 12-8-1992 directing the payment of Rs. 49, 664 as Motor Vehicle Tax due to Tamil Nadu for the period from 1-4-1984 to 18-4-1985, and the same was admitted by this Court on 14-9-1992. After notice to the respondent herein, by an order dated 29-1-1993, this Court was pleased to grant stay of collection of the said tax pursuant to the said demand dated 12-8-1992. The said writ petition is still pending. When the petitioner herein approached the respondent viz., the State Transport Authority, Madras for making the endorsement of transfer of the said permit to his name, the petitioner was advised that he should first get himself impleaded in the place of the erstwhile permit holder in the abovesaid W.P. No. 13958 of 1992. As a matter of fact, all the earlier inter-State transferee of such inter- State permits were also similarly directed and only on such impleadments in the pending writ petitions relating to such permits, the State Transport Authority, would consider the question of endorsement of the transfer in the said permits which are matters of record in the office of the respondent herein. The petitioner has accordingly filed a petition for substitution before this Court in W.M.P. No. 26508 of 1993 in the said W.P. No. 13958 of 1992 and the same was ordered by this Court on 12-11-1993.

3. The respondent-Transport Commissioner by his impugned order dated 22-1-1995 held that the petitioner is liable to pay the tax of Rs.1, 04, 400/-on the ground that the transfer of permit in favour of the petitioner by the erstwhile owner was with effect from 3-5-1993 whereas the applicant applied for continuance of endorsement of countersignature of permit only on 12-7-1994 after a delay of 14 months. Aggrieved by the same, the petitioner has preferred this writ petition with the relief as prayed for.

4. Mr. V. T. Gopalan, learned Senior Counsel appearing for the petitioner contended that the route in question falls under the Inter-State Agreement entered into between the Government of Tamil Nadu and the Government of Pondicherry and was notified by the Government of Pondicherry and the Government of Tamil Nadu in G.O.Ms. No. 3/85, dated 9-3-1985 and the route in question is covered by Serial No. 69, viz., Marakanam to Karayambathur (via) Pondicherry, Thavalakuppan, Karikalampakkam, Bahour Kannikoil Bahour, Kuruvinatham and Krishnavaram. Mr. V. T. Gopalan, learned Senior Counsel invited the attention of this Court to Clause IV of the Inter-State Agreement which is as follows:-

Taxation: Transport vehicle covered by countersignature in the reciprocating State shall be exempted from payment of tax to the reciprocating State. This benefit of single point tax shall apply to the stage carriages having both regular and temporary permits, subject to the routes finding place in the inter-State Agreement. The benefit of single point tax will also apply in respect of routes finding place in the basic agreement irrespective of any variation, extension, curtailment or pattern of trips that may be allowed on future, dates. The concession