MUTHYALA SUNIL KUMAR versus UNION OF INDIA & ORS.

Citation: [2024] 7 S.C.R. 634 · Decided: 09-07-2024 · Supreme Court of India · Bench: VIKRAM NATH · Disposal: Disposed off

Judgment (excerpt)

[2024] 7 S.C.R. 634 : 2024 INSC 499
Muthyala Sunil Kumar  
v.  
Union of India & Ors. 
(Writ petition (Civil) No. 864 of 2022)
09 July 2024
[Vikram Nath* and Satish Chandra Sharma, JJ.]
Issue for Consideration
In the instant writ petitions, Petitioners-transporters and tour 
operators assailed the legality of different State Governments 
levying and collecting Authorization Fee/Border Tax, allegedly, 
in violation of All India Tourist Vehicles (Permit) Rules, 2023. 
Petitioners also prayed for refund of the Border Tax/Authorization 
Fee already realized by the State Authorities at the time of their 
vehicles entering the State.
Headnotes†
Inter-State transportation – All India Tourist Vehicles (Permit) 
Rules, 2023 – All-India Tourists Vehicles (Authorisation of 
Permit) Rules, 2021 – Levy and collection of Authorization 
Fee/Border Tax by State Governments – Petitioners are 
transporters and tour operators – Complaint that the State 
of Tamil Nadu and several other States were realizing Border 
Tax/Authorization Fee despite the transporters or the vehicles 
entering the State having already paid the requisite tax/fee 
under the Rules, 2023 – Tenability of:
Held: The submission advanced by the States is that the demand 
being raised by them is primarily under the rules framed by the 
respective State Governments under Entries 56 & 57 of List II of 
Schedule VII of the Constitution – This Court is not inclined to 
go into the merits of the matter at this stage, as apparently, the 
fundamental question to be decided would be whether levy and 
realization of taxes by the respective States is covered by the Act 
and Rules framed by the respective States under Entries 56 & 57 
of List II of Schedule VII of the Constitution or not – The State 
enactments, rules and regulations being not under challenge, 
it cannot be said that the demand of Border Tax/Authorization 
Fee at the borders by the respective State Governments is bad 
under law – The petitioners, in order to succeed, have to consider 
* Author
[2024] 7 S.C.R. 
635
Muthyala Sunil Kumar v. Union of India & Ors.
challenging the State provision contained in the Act – Also, the 
petitioners ought to have first approached their jurisdictional High 
Courts to challenge their respective State enactments – Accordingly, 
the petitions disposed of, without interference with demands raised 
by the State Governments while giving liberty to the petitioners to 
approach the jurisdictional High Courts for their reliefs – It is made 
clear that this Court neither entered into the merits of the matter 
nor examined the same. [Paras 7, 9, 10, 11]
All India Tourist Vehicles (Permit) Rules, 2023 – Demand of 
Border Tax/Authorization Fee despite the transporters or the 
vehicles entering the State having already paid the requisite tax/
fee under the Rules, 2023 – Challenge to – Writ petitions before 
Supreme Court – Prayer for refund of Border Tax/Authorization 
Fee already realized by the State Authorities – Tenability of:
Held: In the instant case, the petitions are disposed of, without 
interference with demands raised by the State Governments while 
giving liberty to the petitioners to approach the jurisdictional High 
Courts for their reliefs – The tax already recovered would be subject 
to the final outcome of the petitions that may be filed before the 
High Courts. [Paras 11 & 12] 
List of Acts
All-India Tourists Vehicles (Authorization/Permit) Rules, 2021; 
Constitution of India; All India Tourist Vehicles (Permit) Rules, 
2023; Motor Vehicles Act, 1988. 
List of Keywords
Inter-State Transport; Authorisation Fee; Border Tax; Motor Vehicles 
Act; Refund of Border Tax; Double Taxation; Taxation Without Legal 
Authority; Entries 56 & 57 of List II; Entry 35 of List II; Seventh 
Schedule to the Constitution of India; Liberty To Approach High Court. 
Case Arising From
CIVIL ORIGINAL JURISDICTION: Writ Petition (Civil) No. 864 of 
2022
(Under Article 32 of The Constitution of India)
With
Conmt. Pet.(C) No.1243 of 2023 In W.P.(C) No.864 of 2022, Writ 
Petition (C) No.756 of 2023 With Conmt. Pet.(C) No.1244 of 2023 In 
636
[2024] 7 S.C.R.
Digital Supreme Court Reports
W.P.(C) No.756 of 2023, Writ Petition (C) No.819 of 2023 With Conmt. 
Pet.(C) No.1245 of 2023 In W.P. (C) No.819 of 2023 and Writ Petition 
(C) No.1033 of 2023 With Conmt. Pet. (Diary No.46438 of 2023) In 
W.P. (C) No.1033 of 2023, Writ Petition (Civil) Nos. 998, 1043, 1058, 
1064, 1047, 1059, 1066, 1103, 1104, 1105, 9

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