Full Judgment Text
2024 INSC 499
Reportable
IN THE SUPREME COURT OF INDIA
CIVIL ORIGINAL JURISDICTION
WRIT PETITION (CIVIL) NO. 864 OF 2022
MUTHYALA SUNIL KUMAR …PETITIONER (S)
VERSUS
UNION OF INDIA & ORS. …RESPONDENT(S)
WITH
CONMT.PET.(C) No. 1243/2023 in W.P.(C) No.
864/2022
AND
WRIT PETITION (C) No. 756/2023
WITH
CONMT.PET.(C) No. 1244/2023 in W.P.(C) No.
756/2023
AND
WRIT PETITION (C) No. 819/2023
WITH
CONMT.PET.(C) No. 1245/2023 in W.P.(C) No.
819/2023
AND
WRIT PETITION (C) No. 1033/2023
WITH
CONMT.PET. (Diary No. 46438/2023) in W.P. (C)
Digitally signed by No.1033 of 2023
SONIA BHASIN
Date: 2024.07.09
18:18:48 IST
Reason:
Signature Not Verified
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 1 of 11
WITH
W.P.(C) No. 998/2023
W.P.(C) No. 1043/2023
W.P.(C) No. 1058/2023
W.P.(C) No. 1064/2023
W.P.(C) No. 1047/2023
W.P.(C) No. 1059/2023
W.P.(C) No. 1066/2023
W.P.(C) No. 1103/2023
W.P.(C) No. 1104/2023
W.P.(C) No. 1105/2023
W.P.(C) No. 970/2023
W.P.(C) No. 975/2023
W.P.(C) No. 1034/2023
W.P.(C) No. 1007/2023
W.P.(C) No. 996/2023
W.P.(C) No. 984/2023
W.P.(C) No. 1015/2023
W.P.(C) No. 995/2023
W.P.(C) No. 1000/2023
W.P.(C) No. 1039/2023
W.P.(C) No. 1002/2023
W.P.(C) No. 1010/2023
W.P.(C) No. 1031/2023
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 2 of 11
W.P.(C) No. 1119/2023
W.P.(C) No. 1092/2023
W.P.(C) No. 1178/2023
W.P.(C) No. 1115/2023
W.P.(C) No. 1112/2023
W.P.(C) No. 1138/2023
W.P.(C) No. 1143/2023
W.P.(C) No. 1127/2023
W.P.(C) No. 1144/2023
W.P.(C) No. 1125/2023
W.P.(C) No. 1150/2023
W.P.(C) No. 1173/2023
W.P.(C) No. 1167/2023
W.P.(C) No. 1195/2023
W.P.(C) No. 1189/2023
W.P.(C) No. 1213/2023
W.P.(C) No. 638/2023
W.P.(C) No. 783/2023
W.P.(C) No. 799/2023
W.P.(C) No. 828/2023
W.P.(C) No. 831/2023
W.P.(C) No. 824/2023
W.P.(C) No. 808/2023
W.P.(C) No. 852/2023
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 3 of 11
W.P.(C) No. 815/2023
W.P.(C) No. 825/2023
W.P.(C) No. 836/2023
W.P.(C) No. 812/2023
W.P.(C) No. 816/2023
W.P.(C) No. 853/2023
W.P.(C) No. 851/2023
W.P.(C) No. 833/2023
W.P.(C) No. 835/2023
W.P.(C) No. 834/2023
W.P.(C) No. 820/2023
W.P.(C) No. 857/2023
W.P.(C) No. 1139/2023
W.P.(C) No. 1147/2023
W.P.(C) No. 1156/2023
W.P.(C) No. 1152/2023
W.P.(C) No. 804/2023
W.P.(C) No. 859/2023
W.P.(C) No. 832/2023
W.P.(C) No. 822/2023
W.P.(C) No. 855/2023
W.P.(C) No. 898/2023
W.P.(C) No. 865/2023
W.P.(C) No. 879/2023
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 4 of 11
W.P.(C) No. 872/2023
W.P.(C) No. 894/2023
W.P.(C) No. 955/2023
W.P.(C) No. 892/2023
W.P.(C) No. 891/2023
W.P.(C) No. 953/2023
W.P.(C) No. 949/2023
W.P.(C) No. 950/2023
W.P.(C) No. 923/2023
W.P.(C) No. 956/2023
W.P.(C) No. 969/2023
W.P.(C) No. 935/2023
W.P.(C) No. 988/2023
W.P.(C) No. 947/2023
W.P.(C) No. 981/2023
W.P.(C) No. 992/2023
W.P.(C) No. 957/2023
W.P.(C) No. 964/2023
W.P.(C) No. 993/2023
W.P.(C) No. 29/2024
W.P.(C) No. 28/2024
W.P.(C) No. 38/2024
W.P.(C) No. 1348/2023
W.P.(C) No. 1355/2023
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 5 of 11
W.P.(C) No. 1396/2023
W.P.(C) No. 1411/2023
W.P.(C) No. 1415/2023
W.P.(C) No. 1408/2023
W.P.(C) No. 1409/2023
W.P.(C) No. 1406/2023
W.P.(C) No. 1438/2023
W.P.(C) No. 98/2024
W.P.(C) No. 117/2024
W.P.(C) No. 176/2024
W.P.(C) No. 212/2024
W.P.(C) No. 264/2024
W.P.(C) No. 290/2024
W.P.(C) No. 316/2024
J U D G M E N T
VIKRAM NATH, J.
1. This is a batch of 117 petitions, including four
contempt petitions which are de-tagged for being
listed separately, filed primarily by the transporters
and tour operators under Article 32 of the
Constitution of India assailing the legality of different
State Governments levying and collecting
Authorization Fee/Border Tax in violation of All India
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 6 of 11
1
Tourist Vehicles (Permit) Rules, 2023 . Broadly, there
are three categories of petitions but the relief claimed
which is common in all the petitions, is about the levy
and collection of Border Tax/ Authorization Fee.
2. In some cases, there is a challenge to the All-India
Tourists Vehicles (Authorisation of Permit) Rules,
2
2021 as also certain provisions of Motor Vehicles
Act, 1988, however, such petitions were filed prior to
the coming of the Rules, 2023. As such, the reliefs
have been amended seeking directions for
compliance of provisions contained in the Rules,
2023. In some cases, petitioners have also prayed for
refund of the Border Tax/ Authorization Fee already
realized by the State Authorities at the time of their
vehicles entering the State.
3. Initially, it was the State of Tamil Nadu which was
said to be realizing the Border Tax/ Authorization Fee
but, later on, several other States were also
complained of realizing similar Border Tax/
Authorization Fee despite the transporters or the
vehicles entering the State having already paid the
requisite tax/fee under the Rules, 2023. As such,
1
The Rules, 2023
2
The Rules, 2021
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 7 of 11
other States also became the respondent-parties and
notices were issued to them.
4. The Rules, 2023 superseded the All-India Tourists
Vehicles (Authorization/Permit) Rules, 2021. After
the coming into of the Rules, 2023, the power of
levying/collecting Border Tax/Authorization Fee by
the State Governments at various border check posts
from vehicles carrying All India Tourists Permit was
to be done away with. There were primarily two
objects of bringing in the Rules, 2023. Firstly, to
make the movement of such tourist vehicles across
the country through different States seamless and
smooth; and secondly, the revenue to be generated
by the Centre to be proportionately shared with the
State Governments, also taking into account their
previous revenue generation, and also, keeping in
mind that their earlier revenue income was not
reduced in any manner.
5. The transporters started facing difficulties and
harassment as alleged at the borders of different
States where they were again being demanded Border
Tax/Authorization Fee which has given rise to the
filing of this group of petitions. Such demand of
Border Tax/Authorization Fee was challenged on
several grounds ranging from double taxation; levy
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 8 of 11
being without legal authority; being in violation of the
Rules, 2023 which had been framed under Entry 35
of List II of the Seventh Schedule to the Constitution
of India, and various other grounds.
6. In all these matters while issuing notices, interim
relief was also granted that the State Governments
were restrained from making any further realization
of Border Tax/Authorization Fee.
7. Upon notice, States appeared and filed their counter
affidavits. 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. They have defended
their competence to frame the rules, to levy and
collect the taxes, which according to them, are in
accordance to law.
8. It is also their submission that the petitioners, in
case, had any grievance ought to have approached
the respective High Courts under Article 226 of the
Constitution rather than approaching this Court
under Article 32 of the Constitution. Lastly, and most
importantly, it was contended that State Acts/Rules
levying such tax has not been put to challenge and
therefore, the petitions deserve to be dismissed.
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 9 of 11
9. Although counsel for the parties have raised their
arguments on merits, but we are 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.
10. 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. There is another reason why we are not
entertaining the matters on merit is that the
petitioners ought to have first approached their
jurisdictional High Courts to challenge their
respective State enactments.
11. We, accordingly, dispose of these petitions without
interfering with the demands being 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 we have
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 10 of 11
neither entered into the merits of the matter nor
examined the same.
12. Insofar as the tax already recovered, the same would
be subject to final outcome of the petitions that may
be filed before the High Courts. Insofar as the period
of interim order passed by this Court is concerned,
the petitioners would give undertakings before the
High Courts that, in case they fail, they will make
good on demands which would have been raised for
the period for which the stay has been enjoyed.
…….………….........................J.
[VIKRAM NATH]
………………..........................J.
[SATISH CHANDRA SHARMA]
NEW DELHI
JULY 09, 2024.
WRIT PETITION (CIVIL) NO.864 OF 2022 ETC.ETC. Page 11 of 11