B. A. JAYARAM AND OTHERS ETC. vs UNION OF INDIA AND OTHERS.

The Supreme Court held that the withdrawal of tax exemption for tourist vehicles under Section 63(7) of the Motor Vehicles Act, 1939 does not violate Article 301 of the Constitution, which guarantees freedom of trade and commerce. The Court established that compensatory and regulatory taxes fall outside the scope of Article 301, as they do not impair but rather facilitate the free flow of trade by providing necessary services. The petitioners' challenge against the withdrawal was dismissed, affirming the State's power to impose such taxes.