l Appeals Nos
2180 to 2182 of 1968
Appeals by Special Leave from the judgment and order dated October 6 1967 of the Andhra Pradesh High Court in Writ Petitions Nos
1456 of 1965 376 and 2006 of 1966
M C Chagla P Ramachandra Rao and B R Agarwala for the appellants in all the appeals
P Ram Reddy and A V V Nair for the respondents in all the appeals
The Judgment of the Court was delivered by Mitter J
These appeals are directed against the imposition of taxes under the Andhra Pradesh Motor Vehicles Taxation Act V of 1963
The appellant in the first two appeals is the Automotive Manufacturers P Ltd a dealer among other automobile equipment of motor chassis motor vehicles etc
received by it from manufacturers outside the State of Andhra Pradesh
The first appeal arises out of a writ petition against the levy in respect of motor chassis delivered to it by Ashok Leyland Ltd of Madras
These chassis are said to be driven by transport contractors of the manufacturers themselves under temporary certificates of registration under the Motor Vehicles Act and delivered to the appellant at Secunderabad
The second appeal by the same appellant arises out of a writ petition challenging the levy on jeeps jeep truck chassis jeep station wagons of the manufacture of Mahindra  Mahindra Ltd of Bombay besides pick up vans scooters etc
from Bajaj Auto Ltd of Poona
The scooters are carried to Secunderabad in lorries
The appellants in Civil Appeal No 2182 of 1968 are Ashok Leyland Ltd Madras who transport motor chassis by road from their factory at Encore to dealers in various parts of India State Transport Undertakings etc
According to their writ petition these chassis have to traverse long distances in the State of Andhra Pradesh every month destined for delivery not only in the said State but also beyond the same
These chassis are driven from Ennore to their respective destinations in the several States under temporary certificates of registration obtained from the 595 Madras State on payment of requisite tax in that behalf such certificates of registration under section 28 of the Motor Vehicles Act being effective throughout India
The appellants  case is that the levy is illegal and unconstitutional
The grounds urged in the writ petitions filed in the High Court inter alia are as follows  1
S3 of the Act only authorises a levy of tax on a motor vehicles used or kept for use in a public place in the State
There can be no user or keeping for use of the chassis of a motor vehicle as a motor vehicle unless a body is attached to it In the case of vehicles other than chassis such user or keeping for use in a public place can only take place when they are put to the required user or kept for use by the customers for whom the vehicles are transported in the manner contemplated by the Motor Vehicles Act
2 section 9 of the Act exempts from payment of tax chassis of a motor vehicle driven to another place in order that a body may be attached to it
As the chassis are invariably driven to their respective destinations in order that bodies may be attached to them they come directly under the notification of exemption issued by the State Government
As the chassis or the vehicles are covered by temporary certificates of registration taken out by the manufacturers entitling transportation throughout the territory of India the impugned levy operates as an impediment to the free trade and commerce of the petitioners in violation of article 301 of the Constitution
The High Court turned down all the contentions
Hence the appeals
Before this Court Mr Chagla for the appellants limited his first and second contentions to the cases of chassis only
His first contention was that section 3 of the Act was not applicable to the appellants
Sub section
1 of that section runs as follows  The Government may by notification from time to time direct that a tax shall be levied on every motor vehicle used or kept for use in a public place in the State
 Under sub section
2 of section 3 the notification issued under sub section 1 is to specify the class of motor vehicles on which the rates for the periods at which and the date from which the tax shall be levied
A motor vehicle has not been defined in this Act but under section 2j of the Act it is to have the same meaning as is assigned to it in the Motor Vehicles Act
Under section 218 of the last mentioned Act a motor vehicle means any mechanically propelled vehicle adapt 596 ed for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises
 The argument of learned counsel was that a chassis as such could neither be used nor kept for use in a public place before a body was fitted to it and so long as the said step was not taken the question of levy of tax under the Act would not arise
We were referred to the different meanings of the word use in the Oxford Dictionary some of which are as follows  To make use of as a means or instrument To employ for a profitable end In our view it is not necessary for a chassis to have a body attached to it before it can be used within the meaning of the Act inasmuch as it can be used by the man who drives it and such use of it on public roads would be enough to attract the levy
Ordinary chassis have bodies attached to them for commercially profitable use but even without a body a chassis can be used and is actually used when it is taken over public roads
The second submission was that the appellants qualified for exemption under the Government notification under section 9 of the Act
Section 9 inter alia provides  1 The Government may by notification a grant an exemption make a reduction in the rate or order other modification not involving an enhancement in the rate of tax payable i by any person or class of persons or ii in respect of any motor vehicle or class of motor vehicles or motor vehicles running in any particular area xx xx XX
 The notification issued ran as follows  In exercise of the powers conferred by sub section 1 of section 9 of the Andhra Pradesh Motor Vehicles Taxation Act 1963 Andhra Pradesh Act 5 of 1963 the Governor of Andhra Pradesh hereby grants exemption of the tax payable in respect of motor vehicles specified in column 1 of the Table below subject to the conditions if any specified in column 2 thereof 
597 Item 4 of the table reads  Any chassis of a motor vehicle the condition for exemption being  When driven to any place in order that a body may be attached to it
 It was argued that as the use of a chassis would be meaningless unless a body is attached to it and all chassis as a matter of fact have to have bodies attached to them the driving of the chassis on the road without a body  would qualify for exemption under the above notification
We find ourselves unable to accept this view
Item 4 in the table of the above notification limits the exemption from the tax to the journey of the chassis for the express purpose of a body being attached to it
The Automotive Manufacturers being dealers can and do probably deal with or dispose of the chassis as such
There is no allegation in any of the two writ petitions tiled by these appellants that the chassis were coming from Madras or Bombay for the purpose of having bodies attached to them at the workshop of the appellant
In so far as Ashok Leyland Ltd is concerned it is their positive case that the chassis were being driven through the State of Andhra Pradesh either for delivery there or in other States of India
They were certainly being driven along the roads of Andhra Pradesh for disposal at the joumey s end and it would be for the purchaser at the destination to have a body fixed to the chassis according to Ms own need and on the specification given by him
Merely because bodies were going to be attached by the ultimate purchasers it cannot be said that the running of the chassis on the roads of Andhra Pradesh would attract exemption under item 4 of the notification
The last point urged by counsel was that inasmuch as registration of a vehicle in any State under section 28 of the Motor Vehicles Act is to be effective throughout India any tax by a State on motor vehicles be they merely chassis or otherwise would run counter to article 301 of the Constitution according to which trade commerce and intercourse throughout the territory of India is to be free subject to the other provisions of Part XIII
Under article 304b how ever it is open to the Legislative of a State to impose such reasonable restrictions on the freedom of trade commerce or intercourse with or within that State as may be required in the public interest
This again is subject to the proviso that no Bill or amendment for the purpose of the said cl
b is to be introduced in the State Legislature without the previous sanction of the President
Learned counsel wanted to urge that the impost was not saved by article 304b inter alia on the ground that there was no previous sanction of the President in respect of the Bill as envisaged by article 304b
We did not allow counsel to press this point inasmuch as it had 598 not been urged in the writ petition and we hereby make it clear that we are not examining the merits of the contention urged by counsel in this regard and it will be open to his clients if so advised to urge it in any future proceedings they may choose to take
These appeals were originally heard by a Bench of five Judges including section C Roy J who expired a few days back
The above judgment was concurred in by our late colleague
We however gave a further hearing to the parties at which nothing was addressed to us to make us change our opinion already formed
In the result the appeals fail and are dismissed with costs
One set of costs including hearing fee
K B N Appeals dismissed


Summary:
Section 3 of the Andhra Pradesh Motor Vehicles Taxation Act 5 of 1963 authorised levy of tax on motor vehicles used or kept in use in a public place in the State
Item 4 in the table of the notification issued under section 9 of the Act exempted from the tax any chassis of motor vehicle when driven to any Place in order that a body may be attached it
 The Automotive Manufacturers P Ltd in the State of Andhra Pradesh were dealers among other things in chassis received by it from manufacturers outside the State
The chassis were driven by transport contractors of the manufacturers themselves under temporary certificate of registration under the Motor Vehicles Act and delivered to the appellant in the State of Andhra Pradesh
The Ashok Leyland Ltd transported motor chassis by road from their factory in Madras to dealers in various parts of India
These chassis were driven through the State of Andhra Pradesh either for delivery there or in other States of India
The Automotive Manufacturers and the Ashok Leyland challenged the imposition of tax under the Act
The High Court dismissed the petitions
In appeals to this Court it was contended that i section 3 of the Act was not appli cable because there could be no user or keeping for use of the chassis of a motor vehicle as a motor vehicle unless a body was attached to it ii as the chassis were invariably driven to their respective destination in order that bodies may be attached to them they came directly under the notification of exemption issued by the State Government and iii the impugned levy operated as an impediment to free trade and commerce in violation of article 301 of the Constitution
Dismissing the appeals
HELD  i It is not necessary for a chassis to have a body attached to it before it ran be used within the meaning of the Act inasmuch as it can be used by the man who drives it and such use of it on public roads would be enough to attract the levy
596 D ii Item 4 in the table of the notification limits the exemption from the tax to the journey of the chassis for the express purpose of body being attached to it
The Automotive Manufacturers being dealers could and probably did deal with or dispose of the chassis as such
Further it was not the case of the appellant that the chassis were coming from outside the State for the purpose of having bodies attached to them at the workshop of the appellant
So far as Ashok Leyland was concerned the chassis were being driven along the roads of Andhra Pradesh for disposal at the journey s end and it would be for the purchaser at the destination to have a body fixed to 594 the chassis according to his own need and on the specification given by him
 Merely because bodies were going to be attached by the ultimate purchasers it could not be said that the running of the chassis on the roads of Andhra Pradesh would attract exemption under item 4 of the notification
597 C E The contention that there was no previous sanction of the President in respect of the bill as envisaged by article 304 b was not allowed to be raised inasmuch as it was not urged in writ petitions
Therefore the Court did not examine the merits of the contentions urged in this regard