K.M. CHIKKAPUTTASWAMY ETC. vs STATE OF ANDHRA PRADESH AND ORS.

The Supreme Court ruled that the withdrawal of tax exemption under Section 9(1) of the Andhra Pradesh Motor Vehicles Taxation Act, 1963, without issuing a notification as required by Section 9(1)(b), is invalid. The Court emphasized that the inter-State agreements under Section 63(3) of the Motor Vehicles Act, 1939, necessitate proper procedure for any changes in tax obligations. Consequently, the notices demanding tax from the appellants were quashed, affirming their entitlement to the exemption until a valid revocation was issued.