Transit-pass non-compliance can justify tax and penalty on the vehicle owner, and article 265 challenge fails in writ proceedings.

A fiscal provision that creates a statutory presumption against the vehicle owner for breach of transit-pass requirements also authorises assessment of tax and penalty on the owner, so the levy is supported by authority of law and does not offend article 265 of the Constitution. The court further noted that the correctness of the tax quantum was not examined in writ jurisdiction, particularly when the statutory appellate remedy had not been pursued. On that basis, the challenge to the tax and penalty levy failed and the writ petition was dismissed.

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Issues: Whether tax and penalty could be levied on the owner of a goods vehicle for failure to comply with the transit-pass requirements under section 28AA of the Karnataka Sales Tax Act, 1957, and whether such levy offended article 265 of the Constitution of India.

Analysis: The provision expressly created a statutory presumption that, where the driver or person in charge did not comply with the transit requirements, the goods carried in the vehicle would be treated as sold within the State by the owner of the vehicle and assessed to tax. The same provision also authorized a penalty on the owner where the transit pass was not delivered as required. In view of these enabling provisions, the levy could not be said to lack authority of law or to violate the constitutional mandate against taxation without authority of law. The correctness of the quantum of tax was not examined in writ jurisdiction, particularly when the statutory appellate remedy had not been pursued.

Conclusion: The challenge to the tax and penalty levy failed, and the writ petition was dismissed.

Ratio Decidendi: Where a fiscal statute expressly fastens liability and penalty on the vehicle owner for non-compliance with transit-pass requirements, the levy is supported by authority of law and is not open to challenge under article 265 in writ proceedings on that ground alone.

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