State Of Gujarat & Ors vs Akhil Gujarat Pravasi V.S. Mahamandal & ...

The Supreme Court upheld the High Court's decision striking down Sections 3A(1) and (2) of the Bombay Motor Vehicles Tax Act, 1958, and Rule 5 of the Bombay Motor Vehicles Tax Rules, 1959, which imposed tax on vehicles not in use. The Court ruled that the amendments made by Gujarat Act No.9 of 2002 to validate the tax collection were unconstitutional as they violated the principles of fairness and justice. Consequently, the State was directed to refund the tax collected from the respondents for non-used vehicles within three months.