Appeal No 1943 of 1967
Appeal from the judgment and order dated October 24 1967 of the Patna High Court in Civil Writ Jurisdiction Case No 283 of 1966
Basudev Prasad and section N Prasad for the appellant
M C Chagla Saptmi Jha and B P Jha for respondent No 1
U P Singh for respondent No 2
The Judgment of the Court was delivered by Shah J
On January 15 1965 the South Bihar Regional Transport Authority Patna ordered that a permit to ply a stage carriage on Dehri Bhabua route be granted to Arbind Kumar Singh hereinafter called the appellant on production of all valid documents of 1964 model bus along with clearance certificate of transport tax within one month from the date of order failing which the sanction of permit in his favour would stand automatically revoked and permit will then be given to the next deserving candidate Nand Kishore Prasad  
On application submitted by Nand Kishore Prasad who will 
hereinafter be referred to as the respondent that the appellant had failed to 324 carry out the condition relating to the grant of permit the Chairman of the Regional Transport Authority by order dated February 20 1965 cancelled the permit and directed that a permit be given to the respondent
The order of the Chairman was reversed in appeal by the Appellate Board
In the view of the Board the clearance certificate filed by the appellant showed that all the taxes due by him were paid
The respondent then moved the State Government of Bihar under section 64 A of the as amended by the Bihar Motor Vehicles Amendment Act 17 of 1950
The Minister of Transport who heard the petition reversed the order of the Appellate Board holding that the appellant had failed to carry out the conditions subject to which the Regional Transport Authority had ordered that the permit be given to him
A petition under article 226 of the Constitution moved by the appellant in the High Court of Patna against the order of the Minister of Transport was dismissed
The appellant has appealed to this Court with certificate granted by the High Court
The plea raised by counsel for the respondent that the appeal was liable to be dismissed because the High Court was incompetent to grant a certificate of fitness under article 1331a or article 1 3 3  1  b of the Constitution against the judgment of the High Court exercising extraordinary original jurisdiction under article 226 of the Constitution is without substance
This Court has held in section A L Narayan Row  Anr
vs Ishwarlal Bhagwandas  Anr
1 that the words civil proceeding used in article 133 of the Constitution cover all proceedings which directly affect civil rights
A proceeding under article 226 of the Constitution for a writ to bring up a proceeding for consideration concerning civil rights is therefore a civil proceeding
This Court has further held in Ramesh and A nr
vs Seth Gendalal Motilal Patni and Ors
2 that the High Court is competent to certify on appeal against an order passed by a Division Bench of a High Court in exercise of extraordinary original jurisdiction under article 226 of the Constitution if the dispute decided thereby concerns civil rights of the parties
Hidayatullah J speaking for the Court observed at p 203 Mr Gupta s contention that under that article article 133 an appeal can only lie in respect of a judgment or decree or final order passed in the exercise of appellate or ordinary original civil jurisdiction but not of extraordinary original civil jurisdiction is not right
Article 133 not only discards the distinction between appellate and original jurisdiction but deliberately used words which are as wide as language can 1  2 19663 SCR 198 325 make them
The intention is not only to include all judgments decrees and orders passed in the exercise of appellate and ordinary original civil jurisdiction but also to make the language wide enough to cover other jurisdictions under which civil rights would come before the High Court for decision
 The plea raised by counsel for the respondent that the High Court was not competent to grant the certificate must therefore be rejected
The Bihar Legislature enacted Bihar Act 17 of 1950 imposing tax on passengers and goods carried by public service motor vehicles in Bihar
Validity of this levy was upheld by the High Court of Patna
But after the decision of this Court in Atiabari Tea Co Ltd vs State of Assam1 the appeals filed by the operators who challenged the levy were allowed by this Court
The State of Bihar thereafter issued Bihar Ordinance 11 of 1961 which was replaced by Bihar Act 17 of 1961 By that Act the tax was reimposed with effect from the 1st day of April 1950
That imposition of tax was again challenged in writ petitions filed before the High Court of Patna but without success and the order of the High Court was confirmed by this Court in Rai Ramkrishna and Ors
vs State of Bihar1
Section 13 of Act 17 of 1961 declares that the Act shall be deemed to have come into forced on the first day of April 1950
By section 2i tax  means tax payable under the Act and includes the fixed amount determined under section 8
By section 3 charge of tax is imposed
It provides by sub section
1  On and from the date on which this Act is deemed to have come into force under sub section 3 of section 1 there shall be levied and paid to the State Government a tax on all passengers and goods carried by a public service motor vehicle such tax shall be levied and paid at the rate of twelve and a half per centum of the fares and freights payable to the owner of such vehicles Provided   Section 6 requires the owner of the vehicle to make prescribed return to the prescribed authority within such period as may be prescribed
Section 7 prescribes the machinery for assessment of tax
Section 91 provides that the amount of tax or penalty
if any payable by an owner under the Act shall be paid in the manner hereinafter provided
Sub section 2 of section 9 provides that before any owner furnishes any return under the Act he shall
in the prescribed manner pay into the Government Treasury the full amount of tax due from him under the Act according to such return and shall furnish along with the return a receipt from the 1  2 AIR 19463 SC 1667
326 treasury showing payment of the said amount
By section 22 power is conferred upon the State Government to make rules not inconsistent with the Act for all matters expressly required or allowed by the Act to be prescribed and generally for carrying out the purposes of The Act and regulating the procedure to be followed forms to be adopted and fees to be paid in connection with proceedings under the Act and all other matters ancillary or incidental thereto
In exercise of the power conferred by section 22 the State of Bihar has framed the Bihar Taxation on Passengers and Goods Carried by Public Service Motor Vehicles Rules 1966
Rule 11 provided that every owner shall furnish to the authority prescribed in r 16 a monthly return in Form V within a period of fifteen days of the close of the month to which such return relates
Rule 18 provides that where any sum is payable by an owner under the Act or the rules or any amount due for which a notice is to be given under sub section 4 of section 9 the authority prescribed in r 16 shall serve notice in Form XI and shall also fix a date by which the owner shall produce a receipted challan in proof of such payment
It is clear from the scheme of the Act and the rules that by section 3 a charge is imposed upon an owner of the vehicle to pay tax to the State Government on all passengers and goods carried by a public service motor vehicle at the rates fixed by the statute and the owner must make monthly returns within fifteen days from the expiry of the month to which the return relates The decision of the Madhya Pradesh High Court in Raipur Transport Co Private Ltd Raipur vs M P Singh and Ors
1 on which reliance was placed by counsel for the appellant has in our judgment no bearing on the question which falls to be determined in this appeal
Section 10 of the Motor Vehicles Taxation of Passengers Act 1959 passed by the State of Madhya Pradesh provided that in cases referred to in sections 7 8 and 9 the Tax Officer shall serve on the operator a notice of demand for the sums payable to the State Government
That in the view of the High Court pre supposes that an order of assessment has been made under the earlier provisions of the Act and therefore an order of assessment was necessary not only for the validity of the notice of demand but also for enabling the appellate authority to see whether the tax had been correctly assessed or not and the demand made against the operator was or was not justified
We are in the present case not concerned to determine the validity of a notice of demand
The liability to pay tax under Bihar Act 17 of 1961 clearly arises by statutory injunction and not from the order of assessment
In terms section 3 says that there shall be levied and paid to the State Government a tax on all passengers and goods carried by a public service motor vehicle
1 AIR 1968 MP 36
327 The appellant plied his motor buses in 1950 51 and on the plea that the tax was invalid did not pay the tax levied under Act 17 of 1950
After the reimposition of the tax by Act 17 of 1961 there survived no ground on which the liability to pay tax could be resisted
On January 15 1965 a condition had been imposed upon the appellant that a permit would be granted to him provided he produced a clearance certificate
Liability to pay transport tax amounting to Rs 1675 was outstanding against the appellant for nearly fifteen years and that liability was discharged by payment on March 5 1965
it cannot in the circumstances be contended that there was no liability to pay transport tax outstanding against the appellant on the date of the order granting him the permit
Failure to produce the clearance certificate in respect of the transport tax clearly disentitled the appellant to the grant of a permit
Counsel for the appellant however contended that the impo sition of a condition that the appellant shall produce a clearance certificate in respect of the transport tax was invalid and the condition was liable to be ignored by the appellant
Section 471 of the  insofar as it is material provides  A Regional Transport Authority shall in considering an application for a stage carriage permit have regard to the following matters namely  a the interests of the public generally b the advantages to the public of the service to be provided including the saving of time likely to be effected thereby and any convenience arising from journeys not being broken c the adequacy of other passenger transport services operating or likely to operate in the near future whether by road or other means between the places to be served d the benefit to any particular locality or localities likely to be afforded by the service e the operation by the applicant of other transport services including those in respect of which applications from him for permits are pending f the condition of the roads included in the proposed route or area and shall also take into consideration any representation made by persons already providing passenger transport facilities by any means along or near the proposed route sup
Cl68 8 328 or area or by any association representing persons inte rested in the provision of road transport facilities recog nised in this behalf by the State Government or by any local authority or police authority within whose juris diction any part of the proposed route or area lies Provided      Sub section 2 of section 47 sets out the conditions under which the Regional Transport Authority may refuse to grant a stage carriage permit and sub section
3 provides for the conditions in which having regard to the matters specified in sub section
1 the Regional Transport Authority may limit the number of stage carriages generally or of any specified type for which stage carriage permit may be granted in the region or in any specified area or on any specified route within the region
It was urged that under section 47 the Regional Transport Authority is bound to consider only the matters which are specified in cls
a to f of sub section
1 of section 47 Ind if the applicant is found qualified for a permit no conditions may be imposed by the Regional Transport Authority
We need express no opinion on that argument
If the argument raised by counsel for the appellant has any substance and if it be held that the grant of a permit is to be subject only to such of the conditions as may be prescribed under section 48 the order made by the Regional Transport Authority must be deemed to be an order refusing the permit
The appellant could if so advised have challenged the validity of the imposition of the condition relating to the payment of tax but he could not ignore the conditions subject to which the permit was granted
Finally it was urged that the Minister of Transport acted illegally in taking into account evidence which was not on the record of the Regional Transport Authority and alternatively that the Minister violated the fundamental rules of natural justice in basin his judgment upon a document received from the Deputy Commmissioner of Commercial Taxes intimating that the transport tax was due by the appellant without bringing it to the notice of the appellant and calling for an explanation
Section 64 A of the  as amended by Bihar Act 17 of 195 authorises the State Government to call for in the course of any proceedings taken under the Chapter from any authority or office subordinate to it the records of such proceedings and after exa mining such records pass such order as it thinks fit
The expressior pass such order as it thinks fit is not restricted to the passini of orders which are final in character
If for the purposes of
doing complete justice between the parties the authority who heare the revision petition is satisfied that it is necessary to call for addi tional evidence he may call for such evidence
There is no bar in the Act or the rules against an appellate or the revising authority 329 taking into consideration additional evidence brouaht on the record if the authority requires additional evidence to be brought on the record or allows it to be brought on the record to do complete
justice between the parties
The evidence must undoubtedly be disclosed to the parties and they must be given an opportunity to meet an inference that may arise from such additional evidence
We are unable to hold that the Minister of Transport in taking into consideration the report received from the Deputy Commi sioner of Commercial Taxes Intelligence Branch that an amount of Rs 1675 was outstanding on February 16 1965 against the appellant in respect of the two buses plied in the year 1950 51 acted in violation of the rules of natural justice
The circumstance  in which this document was brought on the file of the Minister are not clear on the record
But as stated by the Minister the document was disclosed to counsel for the appellant and counsel was asked to give a reply thereto
The Minister also recorded in his judgment that counsel for the appellant explained that since there was no demand for payment of the dues it was not correct to say that the amount of Rs 1675 was due against the appellant on February 16 1965
The Minister of Transport rejected that argument
Before us it was contended that the document was never shown to the appellant s counsel and he was never asked to render his explanation in that behalf
If this were true the appellant would we have no doubt have approached the Minister who was exercising quasi judicial functions and would have asked him to review his order
This admittedly has not been done
Again if the grievance now raised were true the averments made in paragraph 19 of the petition before the High Court would not have taken the form which they have taken
In paragraph 19 it is stated that the so called report of the Deputy Commissioner Commercial Taxes Intelligence Branch Patna under Memo No 8527 dated 24 7 1965 was never shown to the petitioner and the petitioner had no opportunity to meet the said report Whereas the Minister of Transport had recorded that the report of the Deputy Commissioner Commercial Taxes was shown to counsel for the appellant and the counsel had given certain information the petition before the High Court merely stated that the appellant was not shown the report of the Deputy Commissioner
The High Court on a consideration of the evidence has come to the conclusion that the claim made by the appellant that the document was not disclosed at the hearing before the Minister of Transport and the Minister acted upon that document without informing the appellant cannot be accepted and we do not see any reason to disagree with the view expressed by the High Court
The appeal fails and is dismissed with costs
VPS Appeal dismissed


Summary:
In 1950 51 the appellant was plying his motor buses in Bihar
Bihar Act 17 of 1950 imposed a tax on passengers and goods carried by public service motor vehicles
As the imposition of the tax was found to be invalid the appellant did not pay the tax
In 1961 the tax was reimposed by Act 17 of 1961 with effect from 1st April 1950 and the imposition was found to be valid
Therefore the appellant was liable to pay the transport tax for 1950 51
This liability was outsanding on 15th January 1965 on which date the Regional Transport Authority ordered that a permit to ply a stage carriage be granted to him on condition that he produced a clearance certificate of transport tax within one month from the date of the order failing which the grant will stand automatically cancelled and the permit will be granted to the first respondent
As the appellant failed to carry out the condition the permit was cancelled and given to the first respondent
The order was confirmed by the Government in revision under section 64A of the  as amended by the Bihar Motor Vehicles Amendment Act 1950 after calling for and considering a report from the Dy
Commissioner of Commercial Taxes that the transport tax was due from the appellant for 1950 51
The writ petition in the High Court to quash the Government order was dismissed
The appellant appealed to this Court with certificate granted by the High COurt under article 133 of the Constitution
The respondent contended that the High Court was not competent to grant the certificate in proceedings under article 226 and the appellant contended that  1 on the date of the order granting the permit there was no liability to pay the tax as there was no assessment 2 the condition regarding payment of tax was invalid 3 the Minister of Transport who disposed of the revision to the Government had no right to call for any additional evidence and 4 the report of the Dy
Commissioner of Commercial Taxes should have been disclosed by the Minister to the appellant
HELD  1 The words civil proceedings  in article 133 cover all proceedings which directly affect civil rights and therefore the High Court was competent to grant the certificate in a proceeding under article 226 involving civil rights
324 E F section A L Narayan Row vs Ishwar Lal Bhagwandas  and Ramesh vs Seth Gendalal Motilal Patni   followed
2 Under the scheme of the Act the liability to pay tax arises by statutory injunction and not from any order of assessment
Therefore there was a liability to pay the transport tax outstanding against the appellant on the date of the order granting him the permit and failure to 323 produce the clearance certificate in respect of the tax disentitled him to the sant of a permit
326 H 327 C Raipur Transport Co P vs M P Singh AIR 1968 MP 36 distinguished 3 If it be held that the grant of a permit was to be subject only to such of the matters specified under section 471 a to f and to such of the conditions as may be prescribed under section 48 the order of the Regional Transport Authority in the present case must be deemed to be an order refusing the permit and the appellant should have challenged by way of appeal the validity of the imposition of the condition relating to payment of tax he could not ignore the condition subject to which the permit was granted
328 D E 4 The expression pass such order as it thinks fit  in s 64A as amended by the Bihar Act is not restricted to the passing of final orders
If for the purpose of doing complete justice between the parties the authority who hears the revision petition is satisfied that it is necessary to call for additional evidence he may do so
There is no bar in the Act or the Rules against an appellate or revising authority taking into consideration the additional evidence brought on record
328 G H 5 Such additional evidence must undoubtedly be disclosed to the parties and they must be given an opportunity to meet an inference that may arise from it
In the present case the High Court on a consideration of the evidence came to the conclusion that the additional evidence called for by the Minister of Transport was disclosed by him at the hearing to the appellant s counsel and there was no reason for this Court to disagree with that view
329 A B H