Section 3A of the 1972 Act provides for levy of special road tax.
Furthermore, sub-section (3) of Section 3A read as follows:
Where a transport vehicle is plied without a valid permit or in any manner not authorised by the permit to be plied, there shall be levied, charged and paid to the State Government further special road tax in addition to the tax payable under sub-section (1), on such vehicles at the rates as may be specified by the State Government, by notification, but not exceeding the rates specified in column (3) of Schedule-III of this Act.
To test the vires of the provision, the Supreme Court decided to consider the same on the following aspects:
– Whether it is manifestly unjust or glaringly unconstitutional;
– Whether it is regulatory or compensatory in nature; and
– Whether there is any repugnancy with the provisions in the Central enactment.
Source: Barandbench
