TaxTMI 
TaxTMI 
1985 (8) TMI 180
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....evan Reddy and Sardar Ali Khan, JJ., the learned Judges felt that the course of judicial authority on the question had not been steady but teetered particularly after the Division Bench decision of this Court in W. P. No. 3714 of 1982 and it was therefore not only desirable but necessary to have an authoritative pronouncement on this question by a Full Bench of this Court. Accordingly they referred this case and cases involving similar question to the Full Bench. That is how these cases have been posted now before us. 2. Before we proceed to answer the question, the short and relevant facts provoking the vexed question may usefully be set out : The contract carriage AAA 1999 was found carrying 49 adult passengers in all from Tadipatri to Anantapur. It was stopped and checked by the Motor Vehicles Inspector, Anantapur on 25-9-1984 at 4.00 P. M., near Singanamala tank on Anantapur - Tadipatri road. All the passengers boarded the vehicle at Tadipatri bus-stand. They paid an individual fare of Rs. 5/- each. All the passengers did not belong to single party and each was travelling on his own word. The trip sheet maintained in the bus did not indicate any contract, express or implied,....
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....3) of the Act as follows : "contract carriage' means a motor vehicle which carries a passenger or passengers for hire or reward under a contract expressed or implied for the use of the vehicles as a whole at or for a fixed or agreed rate or sum. (i) on the time basis whether or not with reference to any route or distance, or (ii) from one point to another, and in either case without stopping to pick up or set down along the line of route passengers not included in the contract; and includes a motor cab notwithstanding that the passengers may pay separate fare." Section 2 (15) defined 'motor cab' to mean any motor vehicle constructed, adapted or used to carry not more than six passengers excluding the driver, for hire or reward. 'Permit' is defined under section 2 (20) of the Act to mean the document issued by the commission or a State or Regional Transport Authority authorising the use of a transport vehicle as a contract carriage, or stage carriage, or authorising the owner as a private carrier or public carrier to use such vehicle. Section 2 (24) defines 'public place' to mean a road, street, way or other place, whether a thoroughfare or not, to which the public have ....
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....situation never intended by the Legislature. A transport vehicle is a contract carriage when the vehicle as a whole is hired for a fixed or agreed sum under a contract express or implied by a passenger or passengers from one point to another or on a time basis whether or not with reference to any route, and in either case without stopping to pick up or set down along the line of route passengers not included in the contract. On the other hand, in the case of a 'stage carriage' a transport vehicle is not hired as a whole and only separate fares are collected from individual passengers either for the whole journey or for stages of the journey and the restrictions relating to a contract carriage use of the vehicle as a whole for a fixed sum and the journey between two points without a right to pick up passengers en route or set down passengers are not there. In this content rule 213 of the A. P. Motor Vehicles Rules which lays down additional conditions for the permits becomes relevant. Sub-rule IV condition (vii) makes it obligatory for the owner of a contract carriage to maintain a list of passengers travelling in the vehicle in the form prescribed therein in respect of a each trip ....
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....een the two types of transport vehicles is drawn. 9. We may now usefully refer to the judicial precedents on the question. 10. The view expressed by us above is supported by the unreported decisions of this Court in W. P. No. 6127 of 1970 and W. A. No. 131 of 1972 preferred against the order in W. P. No. 6127 of 1970. In these two decisions the learned Judges held that the main requirement to fall within the ambit of the definition of 'contract carriage' is whether the prior contract, express or implied, entered into by passenger or passengers was for the use of the vehicle as a whole for a fixed amount. It was also observed by Kuppuswami, J., (as he then was) that "It is true that if once a contract is entered into expressly or impliedly to have the use of the vehicle as a whole, from the mere face that for convenience fares were collected individually from the passengers which is often in vogue, the vehicle will not cease to be a contract carriage." 11. The learned Judge further observed that the definition of 'contract carriage' to include a motor cab notwithstanding that the passengers may pay separate fares also strengthens or lends assurance to the conclusion that....
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....ntract carriage. In W. A. No. 943 of 1973, the decision in W. P. No. 898 of 1972 was merely affirmed and in W. A. No. 17 of 1977 the decision in W. A. No. 943 of 1973 was followed. The learned counsel, however, submits that there was a discordant note struck from the earlier decision in W. P. No. 131 of 1972 in W. P. No. 3714 of 1982 by a Division Bench of this Court consisting of Madhava Reddy, A. C. J., and Punnayya, J. It is true that in that case the learned Judges observed that "The essential condition for holding that a motor vehicle was plying as a stage carriage is that it should have picked up passengers or set down passengers en route. So long as all the passengers were picked up at the starting point, in this case at Bangalore and were set down at the last point i.e, Madras, and were not set down anywhere en route, the contract carriage which was permitted to proceed from Bangalore to Madras with 35 passengers cannot be said to have plied as a stage carriage. Suffice to refer to a judgment of this Court in W. A. No. 17 of 1977. Our learned brother Ramachandra Rao, J., speaking for the Bench held : The mere fact that individual fares were collected from the passengers ....
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.... levied on the basis of the use of the transport vehicle. A Full Bench of this Court in Y. Peda Venkaiah, v. Regional Transport Officer, Nellore had occasion to consider the very same question. Alladi Kuppuswami, J., (as he then was) repelling the contention that once a vehicle was registered as a contract carriage and tax was paid on that footing there is no provision in the Act which enables the authorities to levy tax again on the vehicle as a stage carriage if it is found to have been used as a stage carriage and the petitioner may be liable for action under the provisions of the Motor Vehicles Act for contravening the conditions of the permit which enabled him to use the vehicle as a contract carriage observed that "This submission in our view proceeds upon a misconception of the true scope of the Act. Section 3 of the Act authorises the Government to levy tax on every vehicle used or kept for use in a public place in the State by means of a notification issued under that section. Section 3 (2) provides that the notification shall specify the class of motor vehicle on which the rates for the period at which and the date from which the tax shall be levied. In view of this....
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....es whether a transport vehicle is used as a contract carriage or as a stage carriage is whether the vehicle is hired as a whole for a fixed or agreed sum under a prior contract, express or implied, by a single person or party with the owner of the vehicle. (3) If once a single contract is entered into expressly or impliedly for the use of the vehicle as a whole, from the mere fact that the leader of the contracting party or one of the persons in the party collected fares from the passengers, which is very often in vogue, the vehicle cannot be said to have been used as a stage carriage. (4) If there was no single contract with the owner in respect of the vehicle and if no person or leader of the party could exercise full control over the vehicle and several passengers had separately contracted for the use of the vehicle and paid individual fares, the transport vehicle used in such manner falls within the definition of 'stage carriage' and not 'contract carriage', (5) Tax is levied on the basis of the use of the transport vehicle and not on the nature of the permit held by the owner in respect of the vehicle and the power contained in section 3 read with section 4 of the Tax....