M/S TATA MOTORS LTD. vs THE STATE OF JHARKHAND DEPARTMENT OF TRANSPORT THROUGH THE TRANSPORT COMMISSIONER

The Supreme Court addressed the applicability of Section 6 of the Bihar Motor Vehicles Taxation Act, 1994, concerning the levy of tax on motor vehicle chassis held by manufacturers before sale. The Court clarified that manufacturers are liable to pay tax under Section 6 for vehicles in their possession under trade certificates, distinguishing this from the tax obligations of ultimate buyers under Section 5. The judgment upheld the validity of the tax imposed by the State, affirming that the provisions of the Bihar Act are constitutionally sound and enforceable.