STATE OF H.P. vs NURPUR PRIVATE BUS OPERATORS UNION

The Supreme Court upheld the High Court's decision that amendments to the Himachal Pradesh Passengers and Goods Taxation Act, 1955, were invalid as they mandated a lump sum tax without considering actual fares. The Court emphasized that Section 3 of the Act requires tax to be levied on 'all fares in respect of all passengers carried,' and the challenged proviso to Section 4 violated this principle by making lump sum payment obligatory. The Court ruled that tax assessments must be based on actual fares rather than hypothetical assumptions, thereby affirming the High Court's judgment under Article 226.