MAHARAJA TOURIST SERVICE ETC. ETC vs STATE OF GUJARAT

The Supreme Court upheld the constitutional validity of the additional tax levied under various Motor Vehicle Tax Acts, stating that a nexus between the subject and object of the levy is sufficient for its legality, as per Articles 19(1)(g) and 301 of the Constitution. The Court clarified that the demand for tax is justified as long as it is compensatory or regulatory, and the discretion to determine the tax rate lies with the State Government. The interpretation of 'kept for use' in the context of Rule 8(v) of the Punjab Motor Vehicles Taxation Rules was also addressed, emphasizing that it should be understood in its ordinary sense, distinct from mere transit.