Special road tax is Regulatory tax and not penalty: SC

State of Himachal Pradesh and Others Vs GOEL Bus Service Kullu Etc etc (Supreme Court of India) Whether special road tax charged by State of Himachal Pradesh for motor vehicles violating the rules is in the nature of penalty and thus against the competence of the State under Constitution of India? In this interesting case, the larger three judges bench of the Supreme Court was deciding the competency of the State of HP to levy special road tax under Entry No 56 and 57 of the List II of the Article 246 of Constitution of India when it was argued that the said tax was in the nature of penalty an...