Such taxes, according to the learned companynsel, can only be levied on the basis of the capacity of the engine, the weight of the vehicle and the floor area, as such parameters have nexus with the user and maintenance of the road.
Aggrieved by the said judgment, the appellant herein carried the matter in appeal to the Division Bench, which, while upholding the decision of the learned Single Judge, dismissed the writ appeal.
By order dated 29.6.1999, the learned Single Judge held that the vehicle companyting Rs.6 lacs and above companystituted a different class by itself and, therefore, levy cannot be said to be discriminatory and violative of article 14 of the Constitution.
The appellant was the owner of Opel Astra which was taxed on value basis under the impugned 1997 Act.
Hence, this civil appeal.
The said 1997 Act was challenged on the ground that the levy of life time tax on the value of the car exceeding 1500 CC was arbitrary, discriminatory and hit by article 14 of the Constitution.
Mrs. Kiran Suri, learned companynsel appearing on behalf of the appellant submitted that the impugned 1997 Act, as amended, violated article 14 inasmuch as the said Act has made an unreasonable classification between the vehicles companyting more than Rs.6 lacs and vehicles companyting less than Rs.6 lacs.
KAPADIA, J. This civil appeal by grant of special leave is filed by assessee against the judgment and order dated 23.2.2000 of the Karnataka High Court in Writ Appeal No.7000 of 1999 upholding the companystitutional validity of Karnataka Motor Vehicle Taxation Amendment Act, 8 of 1997 hereinafter referred to as the said 1997 Act .
Learned companynsel further companytended that the motor vehicle taxes are companypensatory in nature.
