In Automobile Case, Section 4 of the Rajasthan Motor Vehicles Taxation Act, 1951 was challenged as violative of Article 301 of the Constitution. The Supreme Court held that:

A) Compensatory taxes and regulatory laws are outside the purview of Article 301 B) Law Imposing tax will always have to satisfy the stipulation of prior Presidential sanction in Article 304(b) C) Courts have very limited role to play in taxation laws D) None of the above

Answer & Solution

Correct Answer: Option A

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In Automobile Case Section 4 of the Rajasthan Motor Vehicles Taxation...

In Automobile Case, Section 4 of the Rajasthan Motor Vehicles Taxation Act, 1951 was challenged as violative of Article 301 of the Constitution. The Supreme Court held that:

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