STATE OF KERALA vs ARAVIND RAMAKANT MODAWDAKAR

The Supreme Court upheld the Kerala High Court's decision that the classification of contract carriages based on the nature of permits (intra-State vs inter-State) violated Article 14 of the Constitution. The Court found that the differentiation lacked a rational nexus with the object of taxation, rendering it arbitrary and discriminatory. Consequently, the Court ruled that the enhanced tax rate for inter-State contract carriages was unconstitutional, thereby reversing the High Court's earlier judgment that had upheld the classification.