In Brief
This case involved manufacturers and dealers challenging tax levies under the Bihar Motor Vehicles Taxation Act, 1994. The Court upheld the validity of Section 6, which imposes tax on manufacturers and dealers possessing motor vehicles in the course of business. The Court held that the State Legislature has constitutional competence under Entry 57 of List II to levy such tax. The Court rejected arguments that amendments to the central Motor Vehicles Act (removing manufacturers from the definition of dealer) affected the State Act's applicability. The Court confirmed that tax under Section 6 applies at the possession stage before registration and is distinct from Section 5 tax levied on registered owners. The Court also upheld the imposition of penalty for delayed tax payment under Section 6, provided show cause notices were issued beforehand. All appeals were dismissed.
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