A. S. KARTHIKEYAN ETC. vs STATE OF KERALA & ANR.

The Supreme Court upheld the validity of the Kerala Motor Vehicles (Taxation of Passengers and Goods Amendment) Act, 1971, and the Motor Vehicles (Kerala Third Amendment) Act, 1971, stating that the amendments clarified the tax liability on passengers and consignors, making operators responsible for tax payment to the government. The Court held that the retrospective validation of tax collection was lawful and did not constitute a tax on the operators' income. The judgment confirmed that the tax structure was consistent with the provisions of the Motor Vehicles Act, 1939, specifically Sections 43 and 44(3).