Petitions Nos
1854 60812125 2224 2829 3321 3341 3360 3604 4486 3737 3774 4128 4404 4415 4428 4429 4430 4431 4432 4436 4437 6310 7090 92 7138 7687 9927 8481 82 6790 91182 5356 6483 1868 392981 531 32 533 534 3957 3975 4574 4583 8004 8007 8008 and 804783 5327 5622 24 7510 11 807583 7490 9282 2008 232881 2858 2859 4920 4923 5616 6065 73 5818 5193 520182 8341 8343 3149 50 8381 8382 992782 377 378 53583 8347 8348 356083 8003 8005 800683 8787 878883 and 9011 13 of 1983
Under Article 32 of the Constitution of India WITH Special Leave Petition Nos
11243 46 of 1983
From the Judgment and order dated the 8th July 1983 of the Karanataka High Court in Writ Petition Nos
11268 to 11271 of li 1981 For The Appearing Petitioners Shanti Bhushan YS Chitale KK Venugopal KN
Bhat VK Verma section Ravindra Bhat N Ganpathy CS Vaidayanathan N Nattar RB Datar AV Rangam VG Gupta TVSN Chari ATM Sampath Vineet Knmar DP Singh Miss H Wahi BN Tawakley section Srivinasan PR Ramashesh PN Ramlingam SR Srivastava and Rathin Das For The Appearing Respondents RP Bhatt VS Desai Harbans Lal Swaraj Kaushal MN Shroff GV Subba Rao NS Das Bahl and RN Poddar The Judgment of the Court was delivered by CHINNAPPA REDDY J
Prior to 1969 there was no concept of what may be termed as An All India  permit which would be valid 627 for the whole of India and which would enable the holder of the permit to ply his contract carriage throughout India
Section 63 1 of the  provides that except as may be otherwise prescribed a permit granted by the regional transport authority of any one region shall not be valid in any other region unless the permit has been counter signed by the regional transport authority of that other region and a permit granted in any one state shall not be valid in any other state unless counter signed by the State Transport Authority of that other state or by the regional transport authority concerned
The procedure prescribed for obtaining the counter signature of the transport authorities of other regions and states was cumbersome and was not conducive to the development of all India or inter state tourist traffic
In order to remedy the situation and promote all India and inter state tourist traffic the Parliament amended the and introduced sec
63 7 by amending Act 56 of 1969
This new provision enables the State Transport Authority of every state to grant permits valid for the whole or any part of India in respect of such number of tourist vehicles as the Central Government may in respect of that state specify in that behalf
Preference is to be given to applications for permits from the India Tourism Development Corporation a State Tourism Development Corporation a State Tourist Department and such operators and tourist cars or such travel agents as may be approved in that behalf by the Central Government
This was but 
the first basic step towards encouraging all India or inter state tourist traffic
There were other hurdles to be cleared before any scheme for grant of all India permits could be effectively implemented
One of the hurdles was this Under Entry 57 of List II of the Seventh Schedule to the Constitution the State Legislature is empowered to levy Taxes on vehicles whether mechanically propelled or not suitable for use on roads including tramcars subject to the provisions of entry 35 of list III
Entry 35 of list III reads Mechanically propelled vehicles including the principles on which taxes on such vehicles are to be levied
A coherent reading of Entry 57 of list II and Entry 35 of list III makes it abundantly clear that the power to levy taxes on vehicles suitable for use on roads vests solely in the State Legislature though it may be open to the Parliament to lay down the principles on which taxes may be levied on mechanically propelled vehicles
In other words the Parliament may lay down the guide lines for the levy of taxes on mechanically propelled vehicles but the right to levy such taxes vests solely in the 628 State Legislature
Now there are twenty two States and nine Union Territories in India specified in the first schedule to the Constitution
Each of the States has the right within its territory
to levy a tax on motor vehicles
If a tourist vehicle holding an All India Permit  under sec
63 7 of the chooses to visit half a dozen states in the course of a round trip from say Delhi to 
Kanyakumari or Srinagar to Hyderabad tax will ordinarily have to be paid in all the half a dozen or so States
The burden will surely be intolerable and the whole object of sec
63 7 namely promotion of all India or inter state tourist traffic will be frustrated
The Central Government was alive to the problem and referred the matter to the Transport Development Council for its advice
The Transport Development Council is a non statutory body constituted by the Central Government and consists of the representatives of the Governments of all the States
The Transport Advisory Council advised the Central Government that there should be a single state taxation on tourist vehicles holding permits under sec
63 7 that is tax should be paid in the home state  and the vehicle should be exempted from payment of tax in states other than the home state
This could be done by the respective State Governments issuing notifications under their taxation legislation exempting tourist vehicles registered in other states from payment of tax if tax has already been paid in the home state
The Government of India accepted the E suggestion and requested the State Governments and Union Administrations to issue necessary notifications
The suggestion ran into trouble right from the start
While the Governments of Andhra Pradesh Bihar Goa Daman and Diu Maharashtra Nagaland and Uttar Pradesh readily agreed to issue such notifications on the basis of reciprocity there was no such ready response from some other states
The Government of Karnataka was in particular opposed to the grant of any such exemption
Finally the Government of Karnataka and the Governments of other states too were persuaded to agree to issue such notifications
In the meanwhile the Government of India in exercise of its power under sec
63 7 of the  issued notifications specifying the number and class of tourist vehicles in respect of which each of the State Transport authorities of the States could grant All India permits
The last of the notifications specified that each State Transport authority could issue 50 permits for tourist omnibuses
Pursuant to the request of the Central Government to which all the State Governments finally agreed notifications were issued 629 exempting tourist vehicles holding permits under sec
63 7 from payment of tax if tax had been paid in the home state
We are particularly concerned in these cases with the notifications issued from time to time by the Government of Karnataka since that is where the trouble started
The first of the notifications issued by the Government of Karnataka was on September 18 1972 and it exempted from payment of taxes payable under the Karnataka Motor Vehicles Taxation Act 1957 tourist motor Cabs and tourist omnibuses registered in the States other than the State of Karnataka and plying in the State of Karnataka under permits which were valid without counter signature in the state of Karnataka provided that the tax payable in respect of such vehicles had been paid to the State in which the vehicles were registered and provided further that the said State granted similar exemption to tourist motor cabs and tourist omnibuses whose permits were endorsed in the State of Karnataka under Rule 123 A of the Karnataka Motor Vehicles Rules
On July IS 1976 the Government of Karnataka issued a notification reducing the tax payable under the Motor Vehicles Taxation Act 1957 in respect of tourist vehicles for which permits had been issued under sec
63 7 or endorsement granted under Rule 123 A of the Karnataka Motor Vehicles Rules
On December 20 1976 a further notification was issued in partial modification of the earlier notification dated September 18 1972
Exemption from payment of tax was given to tourist motor cabs and tourist omnibuses registered in States other than the State of Karnataka and plying in the State of Karnataka under the authority of a permit granted under sec
63 7 provided that the tax payable in respect of the vehicle to the State in which it was registered had already been paid and provided further that similar exemption from payment of tax was granted in respect of similar vehicles of the State of Karnataka
This scheme for the grant of All India Permits  designed as it was to promote all India and inter state tourist traffic
soon fell into abuse at the hands of scheming transport operators
Within the scheme itself lay the seeds for abuse
The scheme enabled the State Transport Authority of each State to issue fifty all India permits uniformly irrespective of the size of the State its resources its accessibility its communications its facilities the availability of transport services and operators in the State with the necessary expertise experience and finance to operate all India tourist services and a host of such other factors
Apparently it was thought undesirable to make a distinction between State and State on what were perhaps thought to be elusive criteria and possibly the scheme 630 was expected to give a boost to the transport business in the smaller and less advanced States
And of course it was necessary to obtain the agreement and cooperation of all the States
But the result was that transport operators from big and comparatively prosperous and advanced States well versed in the intricacies of the transport business very soon flocked to small and comparatively poor and less advanced States like Manipur and Nagaland to apply for and obtain all India permits from the State Transport Authorities of these States
It is conceded before us that a large number of persons holding all India permits from some of these small States do not belong to these States at all but are transport operators coming from far off States
Another factor which appears to have influenced the flocking of transport operators from other States to States like Nagaland and Manipur is the nationalization of contract carriage service in States like Karnataka
Once the permits were obtained and the vehicles were registered these small States saw the last of the operators
Having obtained the permits the operators with their vehicles flocked back to the parent State of the operators not of the vehicles or to a State like Karnataka where all contract carriages having been nationalized no private contract carriage was available and there was therefore a great opportunity to ply the vehicles as contract carriages within the State
States like Karnataka were swamped by tourist vehicles from all over the country registered in other States
These tourist vehicles practically colonised  Karnataka and like States and started operating more or less as stage carriages within the particular State never and rarely if ever moving out of the State
There was no thought or Question of undertaking all India or interstate tours and out went the worthy object of sec
637
Quick and easy money with the least trouble and in the shortest time by whatever method was the only object
In the counter affidavit filed on behalf of the State of Karnataka in some of the Writ Petitions it is stated
Though the vehicles were registered outside the State of Karnataka they have been permanently stationed in the State of Karnataka and particularly at Bangalore and the vehicles were all being plied as Stage Carriages
Though All India Tourist Permits were obtained by the residents of other states the permits were used by taking the vehicles and keeping them in the State of Karnataka
The operators run their tourist buses at fixed timings 631 from particular place like the Stage carriages operated by the Karnataka State Road Transport Corporation hereinafter called the KSRTC and other private state carriage operators
On checking of the vehicles and verification of the passengers it was found that the passengers found in the vehicle were not genuine tourists and the drivers or the persons incharge of the vehicles were not in a position to produce the trip sheet name list with whom they entered into contract
It was also found that the passengers found in the vehicles had boarded the buses from one point without any contract or otherwise and without they being tourists
The passengers found in the tourist buses are regular passengers going from one place to another for purposes other than tourism
These vehicles were found catering to the needs of general travellers who can make use of the Stage Carriages operated by the KSRTC or other private stage carriage operators
The respondent produces herewith statements as ANNEXURFS 1 to 9 showing the clandestine operation of the vehicles covered by All India Tourist Permits the remarks and irregularities noticed by the Motor Vehicles Inspectors while checking the vehicles covered by All India Tourist permit the frequent detection of these vehicles running as Stage Carriages by collecting individual fares and picking passengers from one point and setting down them at another point and bringing different passengers in the return journey
From the statements enclosed it is clear that the operators of the tourist buses covered by All India Tourist permits have misused the Tourist Buses by running them as regular stage carriages competing with the KSRTC buses and other private stage carriages within the State
As a result of indiscriminate misue of the Vehicles as Stage Carriages even though the permits were obtained under Section 63 7 of the Central Act for Tourism the State Government has suffered considerable loss in Revenue
These buses actually made use of the passengers which would have normally gone to the KSRTC buses and other private carriages
The very object of obtaining permits under section 637 of the Central Act which intended to promote tourism has been misued by these operators of the Tourists buses by plying their vehicles regularly as stage carriages
Most of the 632 permits obtained under Section 63 7 of the Central Act in the States other than the State of Karnataka are made use of for the purported use of running the tourist buses but actually the permits were misused to run the tourist vehicle either as stage carriages or as contract carriages
A survey made by the Transport Commissioner of Maharashtra revealed a similar state of affairs
The Transport Commissioner submitted a report to the Government of Maharashtra a copy of which has been made available to us
It is stated in the report Our estimate is that out of these 1300 permits anything between 300 to 400 buses are operating in Maharashtra with Bombay as the main centre
Most of these buses for all practical purposes operate as stage carriage services masquerading as contract carriages
In Maharashtra the ordinary passenger transport by stage carriages and contract carriages has been completely nationalised
The All India Tourist Buses on the other hand are exploiting the loopholes available in the law and operate point to point passenger services on routes where the volume of traffic is heavy viz routes like Bombay Kolhapur Bombay Mangalore Mangalore Bombay Panaji Bombay Belgaum Bombay Ahmedabad and Bombay Indore                
On 910th April 1983 the Transport Commissioner had personally visited the Charoti Check Naka which is our border check post bordering Gujarat on the Bombay Ahmedabad road
From the records of the check post he found that as many as 115 All India Tourist Buses are regularly playing on this route
After making an analysis of these 115 All India Tourist Buses  he found that 41 permits had been issued by the State Transport Authority of Manipur
17 had been issued by State Transport Authority Nagar Haveli 8 by the State Transport Authority Meghalaya and 5 by the State Transport Authority Nagaland
A large number of All India Tourist Buses operating with their base in Bombay appear to have been issued by Manipur Nagaland and the Union Territory of Dadra Nagar Haveli
633 The petitioners who are transport operators holding all India permits deny that any of them was guilty of any malpractice or misuse of the permits held by them
But notwithstanding the petitioners  denial we do not have the slightest doubt that the allegations of misuse and malpractice made in the counter affidavit filed on behalf of the Karnataka Government are generally and substantially correct
Complaints about the abuse of the scheme appear to have been made to the Central Government and the Transport Advisory Council also
We are also told that the question of meeting the challenge posed by these abuses is receiving the attention of the Central Government
The Government of Karnataka apparently the worst sufferer reacted sharply
The concession given to the holders of all India permits by way of exempting the all India tourist Vehicles registered in other States from payment of the Karnataka Tax if tax had already been paid in the home State was withdrawn by a notification dated 31st March 81
It is this notification and the consequences of the notification that are in question in these several Writ Petitions
We are informed that the State of Andhra Pradesh has also issued a notification similar to that of the State of Karnataka withdrawing the exemption which it had granted earlier to vehicles operating on permits issued under sec
63 7 and registered in other States
Other states have not withdrawn the exemption previously granted by them to vehicles registered in other states and operating on permits issued under sec
637
But as the exemption granted by most of them is on a reciprocal basis the withdrawal of exemption by the States of Karnataka and Andhra Pradesh has the effect of making vehicles registered in Karnataka and Andhra Pradesh immediately subject to payment of tax in every one of those States through which they pass
The collection of tax by the other States is also resisted in these writ petitions
The power of the State Legislature to levy the particular tax the power of the State Government to grant exemption from payment of tax under the authority delegated to it by the Legislature and the implied power of the State Government to withdraw an exemption granted by it are conceded
Yet a number of ingenious and platitudinous submissions have been though we must confess that many of them have only to be stated to be rejected
Some of them served no better purpose than occupy the time of the Court time which has become dear and precious because of the mountainous arrears of cases awaiting the decision of this Court
We do wish it is remembered that the Supreme Court is the highest Court in the land and its time is not to be frittered away in 634 listening to hopeless arguments advanced just for the sake of argument
The time has come for judges and lawyers to make a determined effort to chop certain arguments and prone certain others judgments following suit
In fairness to the counsel who appeared in the cases before us we must say that everyone was brief and none over stated his case
It was submitted that see
63 7 of the was designed to promote All India and inter state tourist traffic and thus to advance trade Commerce and inter course throughout the territory of India
It was implicit in sec
63 7 that the States would exercise their power of taxation in such a way as not to impose an additional burden on tourist Vehicles registered in other states and plying on permits issued under sec
637 over and above the tax paid in the home State
In other words it was implicit that all the States would exempt from taxation tourist vehicles registered in other States and plying on permits issued under sec
67 7 was withdrawing the exemption the object of sec
63 7 was defeated and therefore freedom of trade Commerce and inter course throughout the territory of India guaranteed by article 301 of the Constitution was impaired
The withdrawal of exemption was therefore unconstitutional and bad in law
The transport operators of Karnataka who were not directly hit by the withdrawal of the exemption by the Government of Karnataka advanced a subtler argument and suggested that they were in fact the worst hit
The argument was that though despite the withdrawal of the exemption they were paying no more tax to the State of Karnataka than they were paying hitherto the withdrawal of the exemption had created a situation which denied them the benefit of exemption granted by the Governments of all others States since those exemptions were reciprocal in condition
The situation indirectly created by the action of the Government of Karnataka imposed an intolerable burden on them by compelling them to pay taxes in every State other than Karnataka through which their vehicles passed and thus virtually denied to them the freedom of trade Commerce and inter course throughout the territory of India guaranteed by article 301 of the Constitution
We are wholly unable to see any force in these submissions The learned counsel for the parties on either side invited our atten 635 tion to the Automobile Transport Rajasthan Ltd vs The State of Rajasthan  Ors Bolani Ores Ltd vs State of Orissa2 GK Krishnan vs State of Tamil Nadu9 International Tourist Corporation vs State of Haryana4 and Malwa Bus Service Pvt Ltd vs State of Punjab5 to explain the extent and the limits of the freedom of trade commerce and intercourse throughout the territory of India proclaimed by article 301 of the Constitution
We do not propose to refer to any of these cases since the law appears to us to be well settled Taxes of a compensatory and regulatory character are outside the expanse of article 301 of the Constitution
Regulatory measures and compensatory taxes far from impeding the free flow of trade and commerce often promote such free flow of trade and commerce by creating agreeable conditions and providing appropriate services
All that is necessary to uphold a tax which purports to be or is claimed to be a compensatory tax is the existence of a specific identifiable object behind the levy and a nexus between subject and the object of a levy
  If the object behind the levy is identifiable and if there is sufficient nexus between the subject and the object of the levy it is not necessary that the money realised by the levy should be put into a separate fund or that the levy should be proportionate to the expenditure
There can be no bar to an inter mingling of the revenue realised from regulatory and compensatory taxes and from the taxes of a general nature nor can there be any objection to more or less expenditure being incurred on the object behind the compensatory and regulatory levy than the realisation from the levy6 It should be patent that it would ordinarily be well nigh impossible to identify and measure with any exactitude the benefits received and the expenditure incurred and levy the tax according to the benefits received and the expenditure incurred
Nor is the court to interpose itself by assuming the role of a cost accountant and attempt to balance meticulously the cost of the services benefits and facilities against the realisation from the levy
And if the levy as a whole is justified by the need generally it does not have to be separately justified with reference to every group of persons claiming 636 to require and receive less service than others
Once the nexus between the levy and service is seen the levy must be upheld unless the compensatory character is shown to be wholly or partly a mere mockery and in truth a design which is destructive of the freedom of inter state trade commerce and inter course
By virtue of the power given to them by Entries 56 and 57 of List II every one of the States has the right to make its own legislation to compensate it for the services benefits and facilities provided by it for motor vehicles operating within the territory of the State
Taxes resulting from such legislative activity are by their very nativity and nature cast and character regulatory and compensatory and are therefore not within the vista of article 301 unless as we said the tax is a mere pretext designed to injure the freedom of interstate trade commerce and intercourse
The nexus between the levy and the service is so patent in the case of such taxes that we need say no more about it
The Karnataka Motor Vehicles Taxation Act and the Motor Vehicles Taxation Acts of other States are without doubt regulatory and compensatory legislations outside the range of article 301 of the Constitution
It is true that the object of enacting sec
63 7 by the Parliament was to promote all India and inter state tourist traffic
But taxes on vehicles  suitable for use on roads  is a State legislative subject and it is for the State Legislature to impose a levy and to exempt from the levy
True again Entry 57 of the State List is subject to Entry 35 of the Concurrent List and as explained by us at the outset it is therefore open to the Parliament to lay down the 17 principles on which taxes may be levied on mechanically propelled vehicles
But the Parliament while enacting section 63 7 of the refrained from indicating any such principles either expressly or by necessary implication
The State s power to tax and to exempt was left uninhibited
It may be that a a State legislation plenary or subordinate which exempts non home state tourist vehicles from tax would be advancing the object of sec
63 7 of the and accelerating inter state trade commerce and intercourse
But merely by Parliament legislating sec
63 7 the State Legislatures are not obliged to fall in line and to so arrange their tax laws as to advance the object of sec
63 7 be it ever so desirable
The State is obliged neither to grant an exemption nor to perpetuate an exemption once granted
There is no question of impairing the freedom under article 301 by refusing to 637 exempt or by withdrawing an exemption
Not to pat on the back is not to stab in the back
True straw by straw the burden of taxation on tourist vehicles increases as each State adds its bit of straw but then each State is concerned with its coffers and has the right to tax vehicles using its roads and the contribution which a tourist carriage is required to make to its treasury is no more than what other contract carriages are required to make
We are firmly of the view that there is no impairment of the freedom under article 301
The special submission on behalf of the Karnataka operators  that the withdrawal by the Karnataka Government of the exemption granted to outsiders  has resulted in the Karnataka operators having to pay tax in every State in the country and therefore the withdrawal has impaired the freedom under article 301 is but the same general sub mission seen through glasses of a different tint
It does not even have the merit that the withdrawal of the Karnataka exemption affects them directly
The submission is rejected
One of the submissions made to us was that if there was a misuse of the all India permits the remedy was to punish the wrong doers by taking appropriate action against the wrong doers by cancelling the permit if necessary but not to withdraw the benefit of the exemption altogether even in the case of honest operators
That is a matter for the Legislature and its delegate to decide but not for the court
If the situation had become so malignant that drastic action was called for it is not for the court to substitute its judgment to say that the object could perhaps be well achieved by adopting a less drastic procedure
It was submitted that all India tourist vehicles do not use the roads of the State as much as the contract carriages operating in the State and therefore the State was wrong in treating them alike
It was said that treatment of unequals as equals had resulted in an infringement of article 14 of the Constitution
It was also submitted that vehicles holding inter State permits under inter state agreements were still exempt from tax and this was also a violation of article 14 of the Constitution
Another contention raised was that there was some sort of promissory estoppel which prevented the State Government from withdrawing the exemption
Yet another argument was that the withdrawal of the exemption was arbitrary and therefore judicial review was necessary
These and other like submissions which were made to us in our opinion fall in the category of arguments which
638 we mentioned earlier have only to be stated to be rejected
The answers are self evident
 The submissions are totally without merit and we see no justification for increasing the length of our judgment by further futile discussion
All the Writ petitions are dismissed with costs and the interim orders are vacated
HSK Petitions dismissed


Summary:
In order to promote all India and inter state tourist traffic the Parliament amended the by introducing in it sec
637 which enabled the State Transport Authority of every State to grant permits valid for the whole or any part of India in respect of such number of tourist vehicles as may be specified by the Central Government
Later the Central Government notified that each State Transport Authority could issue 50 all India permits for tourist omnibuses
As each State had the right within its territory to levy a tax on a motor vehicle it was found that unless tourist vehicles with all India permits were exempted from tax by other States than their home state the object of sec
637 would be frustrated
Therefore the Central Government made a request in this behalf to all the State Governments
In pursuance of that request the Government of Karnataka exempted tourist vehicles holding permits under sec
637 from payment of tax provided the tax payable to the State in which the vehicle was registered had already been paid and provided further that similar exemption from payment of tax was granted in respect of similar vehicles to the State of Karnataka
Many transport operators from big and comparatively prosperous States flocked to some small and comparatively poor and less advanced States and after getting all India permits from them started plying their vehicles in other States like Karnataka and Maharashtra more or less as regular stage carriages
Having found that the transport operators were misusing the all India permits and indulging in certain malpractices the Government of Karnataka withdrew the exemption from payment of tax granted earlier
The petitioners who were transport operators holding all India permits challenged the withdrawal cf exemption as unconstitutional and bad in law
The petitioners submitted that sec
637 of the was designed to promote all India and inter state tourist traffic and thus to advance trade 625 commerce and inter course throughout the territory 
Of India
By withdrawing the exemption the object of sec
637 was defeated and therefore freedom of trade
Commerce and inter course throughout the territory of India guaranteed by article 301 of the Constitution was impaired
Dismissing the petitions  HELD By withdrawing the exemption there is no impairment of the freedom under article 301
637 B Taxes of a compensatory and regulatory character are outside the expanse of article 301 of the Constitution
Regulatory measures and compensatory taxes far from impeding the free flow of trade and commerce often promote such free flow of trade and commerce by creating agreeable conditions and providing appropriate services
All that is necessary to uphold a tax which purports to be or is claimed to be a compensatory tax is the existence of a specific identifiable object behind the levy and a nexus between subject and the object of a levy
Once the nexus between the levy and service is seen the levy must be upheld unless the compensatory character is shown to be wholly or partly a mere mockery and in truth a design which is destructive of the freedom of inter state trade commerce and inter course
635 C D 636 A International Tourist Corporation vs State of Haryana  referred to
By virtue of the power given to them by Entries 56 or 57 of List II every one of the States has the right to make its own legislation to compensate it for the services benefits and facilities provided by it for motor vehicles operating within the territory of the State
Taxes resulting from such legislative activity are by their very nativity and nature cast and character regulatory and compensatory and are therefore not within the vista of article 301 unless the tax is a mere pretext designed to injure the freedom of inter state trade commerce and inter course
The nexus between the levy and the service is so patent in the case of such taxes that one need say no more about it
The Karnataka Motor Vehicles Taxation Act and the Motor Vehicles Taxation Acts of other States are without doubt regulatory and compensatory legislation outside the range of article 301 of the Constitution
635 B D Taxes on vehicles  suitable for use on roads  is a State legislative subject and it is for the State Legislature to impose a levy and to exempt from the levy
Entry 57 of the State List is subject to Entry 35 of the Concurrent List and it is therefore open to the Parliament to lay down the principles on which taxes may be levied on mechanically propelled vehicles
But the Parliament while enacting sec
637 of the refrained from indicating any such principles either expressly or by necessary implication
The State s power to tax and to exempt was left uninhibited
It may be that a State Legislation plenary or subordinate which exempts non home state tourist vehicles from tax would be advancing the object of sec
6371 but 626 the State Legislature are not obliged to fall in line line and to so arrange their tax laws as to advance the object of sec
637 be it ever so desirable
The State is obliged neither to grant an exemption nor to perpetuate an exemption once granted
There is no question of impairing the freedom under article 301 by refusing to exempt or by withdrawing an exemption
636 E 637 A