THE AUTOMOBILE TRANSPORT(RAJASTHAN) LTD. vs THE STATE OF RAJASTHAN AND OTHERS(And Connected Appeals)

The Supreme Court upheld the constitutional validity of the Rajasthan Motor Vehicles Taxation Act, 1951, specifically Section 4, which mandates that no motor vehicle can be used in public places in Rajasthan without paying the prescribed tax. The Court ruled that the tax does not impose an unreasonable restriction on the freedom of trade and commerce under Article 301 of the Constitution, as it is a legitimate exercise of the state's power to levy taxes. The appeal by the appellants, who contested the tax demand on their stage carriages, was dismissed, affirming the state's authority to impose such taxes.