Inter-State transportation – All India Tourist Vehicles (Permit) Rules, 2023 – All-India Tourists Vehicles (Authorisation of Permit) Rules, 2021 – Levy and collection of Authorization Fee/Border Tax by State Governments – Petitioners are transporters and tour operators – Complaint that the State of Tamil Nadu and several other States were realizing Border Tax/Authorization Fee despite the transporters or the vehicles entering the State having already paid the requisite tax/fee under the Rules, 2023 – Tenability of:
Held: The submission advanced by the States is that the demand being raised by them is primarily under the rules framed by the respective State Governments under Entries 56 & 57 of List II of Schedule VII of the Constitution – This Court is not inclined to go into the merits of the matter at this stage, as apparently, the fundamental question to be decided would be whether levy and realization of taxes by the respective States is covered by the Act and Rules framed by the respective States under Entries 56 & 57 of List II of Schedule VII of the Constitution or not – The State enactments, rules and regulations being not under challenge, it cannot be said that the demand of Border Tax/Authorization Fee at the borders by the respective State Governments is bad under law – The petitioners, in order to succeed, have to consider challenging the State provision contained in the Act – Also, the petitioners ought to have first approached their jurisdictional High Courts to challenge their respective State enactments – Accordingly, the petitions disposed of, without interference with demands raised by the State Governments while giving liberty to the petitioners to approach the jurisdictional High Courts for their reliefs – It is made clear that this Court neither entered into the merits of the matter nor examined the same. [Paras 7, 9, 10, 11]
All India Tourist Vehicles (Permit) Rules, 2023 – Demand of Border Tax/Authorization Fee despite the transporters or the vehicles entering the State having already paid the requisite tax/fee under the Rules, 2023 – Challenge to – Writ petitions before Supreme Court – Prayer for refund of Border Tax/Authorization Fee already realized by the State Authorities – Tenability of: Held: In the instant case, the petitions are disposed of, without interference with demands raised by the State Governments while giving liberty to the petitioners to approach the jurisdictional High Courts for their reliefs – The tax already recovered would be subject to the final outcome of the petitions that may be filed before the High Courts. [Paras 11 & 12]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Bibhuti Bhushan Bose (With assistance from: Sanyam Mishra). Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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