State Of Rajasthan & Ors vs Heritage Crafts

The Supreme Court examined the validity of the additional one-time tax imposed on the transfer of ownership of vehicles under the second proviso to Section 4(1)(b) of the Rajasthan Motor Vehicles Taxation Act, 1951. The Court held that the imposition of this tax was beyond the legislative competence of the State as it fell outside Entry 57 of List II of Schedule VII of the Constitution of India. Consequently, the Court upheld the High Court's decision to strike down the impugned proviso, affirming that the tax had already been paid by the vendor at the time of the vehicle's purchase.