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Issues Involved:
1. Constitutionality of the Andhra Pradesh Motor Vehicles Taxation Act (V of 1963) and notifications issued thereunder. 2. Alleged violation of the doctrine of freedom of trade and commerce under Part XIII of the Constitution. 3. Alleged infringement of the equality clause under Article 14 of the Constitution. 4. Alleged unreasonable burden and non-compensatory nature of the tax under Article 19(1)(g) read with Clause (6) and Article 301. 5. Legality of the levy of tax on spare buses. Issue-wise Detailed Analysis: 1. Constitutionality of the Andhra Pradesh Motor Vehicles Taxation Act (V of 1963) and Notifications Issued Thereunder: The appeals and writ petitions challenged the Andhra Pradesh Motor Vehicles Taxation Act (V of 1963) and two specific notifications: G.O.Ms. No. 601 dated March 27, 1963, and G.O.Ms. No. 435 dated March 28, 1968. The appellants contended that the statute imposed an excessive and unreasonable tax burden on transport operators. The Supreme Court, however, upheld the Act's constitutionality, referencing its previous decision in Nazeeria Motor Service v. A.P. State [1970] 2 S.C.R. 52, which validated the earlier tax rates under the Validating Act of 1961. 2. Alleged Violation of the Doctrine of Freedom of Trade and Commerce Under Part XIII of the Constitution: The appellants argued that the tax violated the freedom of trade and commerce as embodied in Part XIII of the Constitution. The High Court found that the tax was compensatory and did not interfere with trade and commerce freedom. The Supreme Court agreed, noting that the tax revenue was insufficient to meet the expenditure on road construction and maintenance, thus justifying the tax as compensatory. 3. Alleged Infringement of the Equality Clause Under Article 14 of the Constitution: The appellants initially argued that the tax infringed the equality clause under Article 14. However, this point was not pursued in the Supreme Court, given the precedent set in Nazeeria Motor Service, which had already addressed similar concerns. 4. Alleged Unreasonable Burden and Non-Compensatory Nature of the Tax Under Article 19(1)(g) Read with Clause (6) and Article 301: The appellants contended that the tax rate of Rs. 67.50 per seat per quarter was an unreasonable burden and not a compensatory measure. The Supreme Court examined the budget estimates and found that the tax revenue did not exceed the expenditure on roads and related infrastructure. The Court also reviewed a report from the Road Transport Taxation Enquiry Committee, which purported to show a surplus, but ultimately found the State's budgetary data more reliable. The Court concluded that the tax was compensatory and did not impose an unreasonable restriction on trade. 5. Legality of the Levy of Tax on Spare Buses: The appellants challenged the tax on spare buses, arguing it was unjustified since these buses were not regularly used. The Supreme Court upheld the tax, reasoning that spare buses, kept for use in case of breakdowns, were essential for proper transport regulation. The Court found that the levy on spare buses was justified as a compensatory measure. Conclusion: The Supreme Court dismissed the appeals and writ petitions, affirming the constitutionality of the Andhra Pradesh Motor Vehicles Taxation Act (V of 1963) and the impugned notifications. The Court held that the tax was compensatory, did not violate the freedom of trade and commerce, and was not an unreasonable burden on transport operators. The levy on spare buses was also upheld as a necessary regulatory measure. The appeals and petitions were dismissed with costs, and one set of hearing fees was awarded.
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