The Supreme Court has granted relief to bus operators in Uttar Pradesh in payment of tax on passengers’ luggage in the case, Prahlad Singh vs State of Uttar Pradesh . The transport commissioner demanded additional tax of Rs 45 for every metric ton on gross vehicles weight or part thereof in terms of Article II of the Uttar Pradesh Motor Vehicles Taxation Act 1997. The bus operators challenged this in the Allahabad high court. Their writ petitions were dismissed and they were told to pay the tax. They appealed to the Supreme Court. It ruled that that Article II operated when the vehicles carry goods and not when the passengers carry their luggage during journey.
