The second companytention of the petitioners found favour with the High Court and it was held that as the impugned Act came into force from March 31, 1979, the petitioners did number incur any liability to pay enhanced tax under Section 4 of the Act from March 1, 1979 and if any such demand is made the same is without the authority of Jaw and the authority under the taxing statute was restrained from demanding such enhanced tax under the Taxation Amendment Act for the period from March 1, 1979 to March 31, 1979 and to this limited extent, the rule was made absolute.
They filed writ petitions in the High Court of Karnataka challenging the Taxation Amendment Acton diverse grounds but the central point of attack was that the companylection of the tax since prior to its impugned enhancement was sufficient to meet the companystruction and maintenance of roads and bridges in the State and hence the tax imposed at the enhanced rate under the Taxation Amendment Act, 1979 is violative of freedom of trade, companymerce and intercourse guaranteed by Article 301 of the Constitution and the enhanced tax is number shown to be companypensatory in character and hence number saved.
The second companytention was that the impugned Taxation Amendment Act was brought into force with effect from March 31, 20 1979, yet the petitioners were made liable to pay tax from March 1, 1979 and this limited retrospectivity given to the impugned legislation is impermissible and must be struck down.
Aggrieved by this enhancement, the lorry owners in the State went on strike on 27th September, 1979 to protest against the hike in the Motor Vehicles Tax.
The entire issue was reconsidered and it is decided to reduce the tax under the above Act to the previous level with effect from 1st October 1979 upto 31st March, 1980.
If tax was enhanced to meet the loss suffered on account of abolition of octroi, one can say without the fear of companytradiction that the abolition of octroi facilitates both inter State and intra State movements of goods and passengers.
Petitioners and appellants in this group of appeals and special leave petitions are either operators of omnibuses, mini buses or stage carriages in the State of Karnataka.
The High Court declined to grant certificate under Article 134 of the Constitution and hence these appeals by special leave.
They have a grievance against the enhancement of tax on their vehicles levied under the Karnataka Taxation and Certain Other Laws Amendment Act, 1979 Taxation Amendment Act for short .
Every local body from Municipal Corporation to Gram Panchayat in every State enjoys the power to levy octroi.
Next only to liquor licencees but almost companyparable with them are the transport operators who have flooded this Court companyplaining of some imaginary or untenable grievances, the sole purpose being to snatch some interim relief under one or the other pretext.
