MALWA BUS SERVICE (P) LTD. vs STATE OF PUNJAB & OTHERS

The Supreme Court upheld the validity of the tax imposed under Section 3A of the Punjab Motor Vehicles Taxation Act, 1924, stating that the tax on stage carriages is compensatory in nature and does not violate Articles 301 and 304(b) of the Constitution. The Court emphasized that trade and commerce are not absolutely free from taxation and that the tax serves to cover the costs of facilities provided by the State. The petitioners failed to demonstrate that the tax was discriminatory or expropriatory, leading to the dismissal of their petitions under Article 32.