SHAIK MADAR SAHEB AND ORS. ETC. vs STATE OF ANDHRA PRADESH & ORS.

The Supreme Court upheld the validity of the tax imposed under Section 3 of the Andhra Pradesh Motor Vehicles Taxation Act, 1963, stating that the tax is compensatory in nature and aimed at maintaining and developing the road system. The Court found that the tax does not violate Article 19(1)(g) or Article 301 of the Constitution, as it does not impose unreasonable restrictions on trade. The appeal was dismissed, affirming the High Court's decision that the tax on spare buses is justified under Section 3, as they are kept for potential use.