JUDGMENT 1. - In these writ petitions. filed tinder Article 226 of the Constitution, the petitioners have challenged the validity of the Circular dated October 5, 1987 issued by the Additional Transport Commissioner (Taxation), Rajasthan, Jaipur, directing the District Transport Officers and the Regional Transport Officer to recover tax from the owners of motor vehicles holding temporary permits according to the rate fixed under item No. II of Part II of the Schedule to the Rajasthan Motor Vehicles Taxation Act, 1951 hereinafter referred to as 'the Act'. 2. The petitioners are owners of motor vehicles and claim to hold temporary permits granted to them tinder the provisions of the Motor Vehicles Act, 1939. Their case is that they have already paid the tax on their vehicles under item I of Part II of the Schedule and the demand raised against them by the respondents now to pay the difference of the tax payable as per item II and the one already deposited under item I is wholly illegal and without jurisdiction. It is alleged that the vehicles plied on temporary permits which are issued under the various sections of the Motor Vehicles Act, namely. Sections 62(1), 62(2), 68F(IA), 68F(IC) and proviso to Section 68FF fall under item 1. and not under item II of Part II of the Schedule. The petitioners have prayed that the Circular issued by the Additional Transport Commissioner (Taxation), Rajasthan and the consequential notices of demand issued by the District Transport Officers he quashed and that they may further be retrained from recovering from the petitioners the tax as per item II. A declaration has further been sought that item. If pertaining to the Daily Tax in part II if the Schedule is not applicable to the vehicles run on regular temporary permits granted under section 62(l). 6 (2), 68F (-A), 68F(1-C) and proviso to Section 68FF of the Motor Vehicles Act. 3. Reply to the writ petition, has been filed in Writ Petition No. 103 of 1988 Mahalaxmi Transport Co v. The State of Rajasthan and the Additional Government Advocate Dr. S S Bhandawat, has submitted that this may he treated as a reply in all writ petitions. Counsel for the petitioners have not objected to this. 3. Reply to the writ petition, has been filed in Writ Petition No. 103 of 1988 Mahalaxmi Transport Co v. The State of Rajasthan and the Additional Government Advocate Dr. S S Bhandawat, has submitted that this may he treated as a reply in all writ petitions. Counsel for the petitioners have not objected to this. The Additional Government Advocate and the counsel for the petitioners are further agreed that all the writ petitions comprising this group may be heard and finally decided, irrespective of the stage the same are pending in this Court. In all the petitions, it common question whether the tax on motor transport vehicles plied on temporary permits would fall under item I or item II of the Schedule is involved and the answer to this would depend on the true interpretation of these two items in the light of the provisions contained in this Act. All the writ petitions. irrespective of their stage, were therefore, heard together and are being decided by this judgment. 4. In the reply filed in writ petition No. 103 of 1988 (Mahalaxmi Transport Co. the respondents have submitted that the tax was being levied under the provisions of Section 4 of the Act and rule 14 of the Rajasthan Motor Vehicles Taxation Rules, 1951. hereinafter referred to as 'the Rules.' It is submitted that daily tax. envisaged by Part II of item II of the Schedule was leviable on the temporary permits granted under Section 62 of the Motor Vehicles Act. It was further submitted that as per the rules, the tax was payable in advance at the time of making the applications for temporary permits but as the temporary permits were being granted by the authorities, without following the provisions of the Rules. the Additional Transport Commissioner (Taxation) had to issue the instructions to the District Transport Officer and the Regional Transport Officer to comply with the provisions of rule 34 at the time of issuing the permits. According to the respondents. the Circular dated October 5, 1987 contained guidelines to the taxing authorities to recover tax as per the provisions of the Act and Rules. According to the respondents. the Circular dated October 5, 1987 contained guidelines to the taxing authorities to recover tax as per the provisions of the Act and Rules. It was further alleged that the owner and the person in charge of the vehicle were obliged tinder rule 34 to pay tax as per item II of part, It in advance at the time of making the application for the grant of temporary permit. In short the submission of the respondents is that the holders of temporary permit were liable to pay tax as per the rate specified in item II and not item I, of part lI of the Schedule. 5. The question for consideration in this group of writ petitions, therefore is whether the tax leviable on motor transport vehicles, plied under the authority of temporary permits issued under the provisions of the Motor Vehicles Act, will be governed by item I or item II of part II of Schedule. 6. Shri Vyas, counsel for the petitioners, has urged that in all the writ petitions in this group, the petitioners are paying road tax under item I and special Road Tax under Section 4-B after filing the returns and getting the tax duly assessed. If they are now required to pay tax as per item II, the incidence upon them would he too heavy and it Could not he the intention of the Legislature. The tax liability of a vehicle with a sitting capacity of 25 seats. under item I is Rs. 1250/- for the entire financial year but if it is assessed as per item II for three consecutive periods of four months each for which temporary permits were granted pending renewal or under section 68 F (1-C) the tax liability would be as high as Rs. 7,300/- for that year. In most of the cases, submit learned counsel the duration of the temporary permits has been for more than a year, in some even upto five years. According to Mr. Vyas. if the two entries are construed harmoniously, all vehicles, which are being plied for hire or reward, would fall under item I and not item No.II, which would be attracted only in cases where the vehicles are not being plied for hire or reward. And this would be so. According to Mr. Vyas. if the two entries are construed harmoniously, all vehicles, which are being plied for hire or reward, would fall under item I and not item No.II, which would be attracted only in cases where the vehicles are not being plied for hire or reward. And this would be so. irrespective of the period for which the vehicle is put to use and also, the nature of the permit, on which it is plied. Inviting reference to rule 27 read with the rules 28 to 30 learned counsel have argued that item II would not cover the case of vehicles in respect of which tax has a ready been paid under item I, irrespective of the fact whether the same are plied on temporary permits or otherwise. Learned counsel have further submitted that item 11 would be attracted only in those cases where the vehicles are exempt from paying the road tax under item I. They have further urged that the present petitioners are paying tax as per item I and also the Special Road Tax under Section 4-B and as such they cannot be made to pay tax under item II, which is a daily tax and in respect of such vehicles for which daily tax is being paid, the Special Road Tax is not leviable. 7. The Additional Government Advocate has, on the other hand, submitted that all motor transport vehicles plied under the temporary permits granted under the Motor Vehicles Act would be governed by item 11 of Part It of the Schedule and not under item I thereof, 8. The Act came into force on April 3, 1951. The object of the Act is to impose tax on motor vehicles in the State of Rajasthan. Section 4, which is the charging section is set out below:- : "4 IMPOSITION OF TAX (I) Save as otherwise provided by this Act or by the rules made thereunder or any other law for the time being in force. there shall be levied and collected on all motor vehicles used or kept for use in the State- (a) a tax in the case of such vehicles for which nothing has been specified in column No. 5 of part 1 of the Schedule. there shall be levied and collected on all motor vehicles used or kept for use in the State- (a) a tax in the case of such vehicles for which nothing has been specified in column No. 5 of part 1 of the Schedule. (b) it one time tax, in the case of such vehicles, not being transport vehicles, for which maximum rates have been specified in column No. 5 of part I of the Schedule:- at such rate not exceeding that specified in the Schedule, as may be fixed by the State Government by Notification in the Official Gazette : Provided that, in addition to one time tax, there shall be paid by the owner or person having possession of control of a motor vehicle on which one time tax is payable any tax or penalty as was payable under this Act for any period prior to the coming into force of the provisions of Chapter IV of the Rajasthan Finance Act, 1986 at such rates as were applicable to such vehicle from time to time," and "(1-A) where the quarterly or monthly rates of tax are not fixed by the State Government by Notification in the Official Gazette, the amount of tax for a quarter or a month, if permissible to be paid quarterly or monthly, shall be the amount equivalent to the one fourth or the one twelfth respectively of the annual rate of tax." "(2) Tax shall be payable under this section by the owner of the Motor Vehicle except for the period during which the owner surrenders the certificate of registration to the Taxation Officer in the prescribes manner or satisfies the Taxation Officer that the vehicle has remained out of use for such reasons as may be prescribed ; Provided that the period of such surrender or the period of such non-use, as the case may be, shall be, for a period not less than three months : Provided further that if the vehicle is found plying after the certificate of registration has been surrendered, the owner, shall pay the tax for the entire period during which the certificate of registration remained surrendered." 9. Section 3 empowers the State Government to exempt wholly or partially any motor vehicle from the payment of tax. Section 3 empowers the State Government to exempt wholly or partially any motor vehicle from the payment of tax. Section 4-A levies a surcharge of 10 per cent from November 5, 1974 and Section 4-B provides for the levy of Special Road Tax. Section 5 lays down the procedure for payment of tax. It reads as under:- "Section 5-Payment of tax-(1) Save as otherwise provided by or under this Act and subject to the provisions of sub-section (5), the tax leviable tinder section 4 and section 4-B shall be paid in advance by every owner or by the person having possession or control of a motor vehicle:- (a) In the form of one time tax, or (b) annually, or (c) for one or more quarters of a financial year at the rates fixed by the State Government under section 4 and Section 4-B The annual tax, other than that payable on a stage carriage shall be payable on or before the thirtieth day of April in each financial year and the quarterly tax shall be payable on or before the fifteenth day of April, July, October and January in each financial year and the additional tax shall be paid within the time allowed by or under this Act: Provided that the State Government may, if it is satisfied that there are sufficient reasons for doing so, by notification in the Official Gazette extend whether prospectively or retrospectively the time limit for payment of tax in case of a particular class or classes of vehicles or persons liable to pay tax under this Act. (3) The one time tax payable under clause (b) of sub-section (i) of Section 4 shall be payable,- (a) Where the motor vehicle is purchased or brought into the State for use or is kept for use on or after the coming into force of the provisions of Chapter IV of the Rajasthan Finance Act, 1986 within thirty days of the date of such purchase or of being as so brought or on the date of registration or assignment of such vehicle in the State, whichever is earlier, or (b) Where the motor vehicle has been used or kept for use in the State before the coming into force cf the provisions of Chapter IV of the Rajasthan Finance Act, 1986 within sixty days of such coming into force. (4) The tax payable tinder section 4-B on a stage carriage or a contract carriage:- (a) plying exclusively within the municipal or city limits shall be paid in advance monthly or quarterly, as the case may be or before such date as may be prescribed ; and (b) other than those specified in clause (a) shall be paid monthly or quarterly in advance or otherwise on or before such date as may be prescribed. (5) Where the tax on any motor vehicle becomes payable, otherwise than as one time tax, for the first time after the commencement of a financial year the tax payable shall be one third of the quarterly rate for each calender month or part of a calender month where quarterly rate is prescribed and in other cases one twelfth of the annual rate in respect of which tax has become payable: Provided that the State Government may prescribe annual rate of payment of tax for any class or category of motor vehicles. (6) Where a motor vehicle is found plying even after the deposit or surrender of' the Certificate of registration or the permit the tax on such vehicle shall be payable forthwith for the entire period for which such Certificate or permit was deposited or surrendered." 10. Section 6 contains the provisions for imposing penalty for delay in payment of tax. Section 6-A provides that if as a result of revision of rates the amount of tax payable becomes higher than the tax already paid the owner shall be required to pay the difference. Section 7 contains the provisions for refund of tax. Section 8 provides that the owner or any person having possession or control of a motor vehicle shall make a declaration or return in the prescribed form and shall pay the tax which he is liable to pay in respect of the motor vehicle. Section 8-A empowers the taxing officer to determine the amount of tax due and recover the same. Section 9 deals with the payment of additional tax if the motor vehicle has been altered in a manner subjecting the vehicle to higher rate of tax. Section 10 contains the provisions for the grant of the tax certificate or taken by the Taxing Officer on the payment of tax. Section 9 deals with the payment of additional tax if the motor vehicle has been altered in a manner subjecting the vehicle to higher rate of tax. Section 10 contains the provisions for the grant of the tax certificate or taken by the Taxing Officer on the payment of tax. Subsection (2) of this section provides that no motor vehicle liable to tax shall be used or kept for use in Rajasthan unless the owner or the person in control of the vehicle has obtained a tax certificate or a valid token. It is made obligatory on the owner of the vehicle to exhibit the token on the vehicle itself Sections 11 and 12 deal with the offences and compounding thereof. Section 13 and section 13-A provide the mode of recovery of tax and penalty in case of default. Sections 14 to 18 contain the provisions regarding appeal, court fees. cognizance of offences and other power of the court and the taxing authorities. Section-, 19 deals with the liability of the Manufacturer or the dealer in respect of the vehicles in his possession. Section 20 provides for the levy of tolls for the use of brides. Section 22 empowers the State Government to frame rules for carrying into effect the purpose of the Act. 11. In exercise of the powers conferred by section 22, the State Government framed the Rajasthan Motor Vehicles Taxation Rules, 1951 hereinafter referred to as 'the Rules'. Rule 4 lays down the mode and procedure for the payment of tax. Rule 6 deal, with the filing of declaration and return and rule 8 empowers the taxing officer to verify the same and determine the amount of tax. Rules 15 to 24 contain the provisions relating to the grant of certificate of tax, issue of token its renewal and the manner of exhibiting the same on the vehicle etc. Rule 25 deals with the surrender of certificate of registration and the current token as provided under section 4 of the Act. Rules 25-A, 25-AA and 26 prescribe the procedure for claiming refund or adjustment of the amount of tax paid in excess of the tax due. Rules 27 to 29 prescribe the exemptions from payment of tax. Rule 30 exempts the vehicle registered as military motor vehicle from making a declaration under section 8. Rules 25-A, 25-AA and 26 prescribe the procedure for claiming refund or adjustment of the amount of tax paid in excess of the tax due. Rules 27 to 29 prescribe the exemptions from payment of tax. Rule 30 exempts the vehicle registered as military motor vehicle from making a declaration under section 8. Rule 31 lays down the circumstances where the use of the vehicle is permitted without a token or tax certificate. Rule 32 deals with the compounding of offences Rule 33 provides the procedure for the recovery of the tax due Rule 34 deals with the payment of Daily Tax. Rules 37 and 38 contain the procedure for appeals and rectification of mistakes. Rule 39 authorises the State Government to set up check posts and barriers to prevent and check evasion of tax. Sub-rule (2) of this rule obliges every driver to stop the vehicle at every check post or barrier and keep the same stationary so long as the officer-in charge of the check post or the barrier inspects all the documents relating to the vehicle. The Schedule to the Act consists of four parts. which we propose to deal later. 12. What do the provisions in the Act reveal ? Section 4, which is the charging section, levies tax on all motor vehicles used or kept for use in the State of Rajasthan. The rate of tax has been left to be fixed by the State Government by a Notification in the official gazette although the maximum rate has been specified in the Schedule annexed to the Act itself. Any one found in possession of a vehicle used or kept for use without having paid the amount of tax, is made liable to, penalties and punishment as provided by section I 1 of the Act. The significant fact to he noted under section 4 is that the levy is not only on operating the vehicles but also for keeping it for use. The Act postulates a single levy tax and does not have the incidence of double taxation. Section 5 requires payment in advance. Three modes of payment are prescribed, namely (1) in the form of' one time tax, 12) annually. or (3) quarterly. The Act postulates a single levy tax and does not have the incidence of double taxation. Section 5 requires payment in advance. Three modes of payment are prescribed, namely (1) in the form of' one time tax, 12) annually. or (3) quarterly. If the tax is deposited in the form of one time tax, it has to be paid when the vehicle is purchased or brought into the State for use or when it is registered or is assigned in the State. Where the tax is deposited annually, the payment has to be made by the 30th April in each financial year and if the mode of payment adopted is quarterly it is required to be paid by the 15th of April, July, October and January of such financial year. The Act also contains provisions for refund in certain contingencies. If a vehicle, in respect of which one time tax has been paid, is destroyed or has been taken out of the State, the owner may claim refund on 'pro-rata' basis in the manner prescribed. Where the mode of payment of tax is annual or quarterly and the vehicle has not been used for a continuous period of not less than three months, the owner becomes entitled to the refund of an amount equal to 1/12th of the annual rate of tax for each complete month of the period for which tax has been paid. Section 10 makes it obligatory for the owner to keep a tax certificate or a token in the vehicle always. The token has to be exhibited in the vehicle in the manner prescribed. Thus, it is quite evident that the impost under the Act is on the vehicles. Further, the liability to pay the tax arises as soon as a person becomes the owner of the vehicle and puts it to use or keeps it for use in the State though he may not have been actually operating it. In State v. Jujharsingh (A.I.R. 1959 Rajasthan 80) , this Court has said:- "From the language of the section, it clearly appears to us that the vehicle may not have been actually used, but if it was being, kept for use in this State, then too the liability for tax would arise under this section............ We are, therefore, satisfied that the correct position is something like this. We are, therefore, satisfied that the correct position is something like this. The liability to pay the tax arises under the Act as soon as a person becomes the owner of a motor vehicle and puts it to use or keeps it for use in this State. In such a case, he must pay the tax in advance either annually or by instalments as provided in the Act." 13. The further position which seems clear is that the scheme of the Act does not require as a condition to the liability for the payment of tax that the owner should possess any temporary or non-temporary permit issued under the Motor Vehicles Act. It is immaterial for the purpose of tax liability whether the owner holds a non-temporary or a temporary permit or does not hold any permit what soever. In fact, the tax under the Act is not dependent upon or related to the nature of the permit, on the authority of which the vehicle is sought to be plied. These in short. are the basic and the primary features of the Act. We may now proceed to the scheme of the Schedule. As already said, it consists of four parts. Both the Schedules (I) prescribing the maximum rate and (2) specifying the actual rates follow substantially the same pattern. Part I deals with vehicles other than transport vehicles. For all the vehicles in this part except under item VI, one time tax' has been provided depending on the nature of the vehicle. Items III and VI of this part deal with Motor vehicle, constructed and used solely for the convenience of persons and light personal luggage and the rate prescribed is on the basis of :]umber of seats authorised. Items III and VI deal as under : "III (a). Motor vehicles excepting those shown in item I and II above constructed and used solely for the convenance of persons and light personal luggage with seating capacity of : Maximum rate of tax. Ann Qty. one time (i) upto four including driver - - 3000 (ii) five including driver - - 3500 (ii) six including driver - - 4000 (b) Trailers drawn by vehicles,mentioned at (a) above - - 325 VI. Ann Qty. one time (i) upto four including driver - - 3000 (ii) five including driver - - 3500 (ii) six including driver - - 4000 (b) Trailers drawn by vehicles,mentioned at (a) above - - 325 VI. Motor vehicles, other than those covered by items No. I to V above, constructed and used solely for the convenance of persons and light personal luggage shall be charge on the basis of total number of seats authorised (including seat of the driver) 50 13 Notes:-(I) The one time tax as specified in column No. 5 above on the motor vehicles registered prior to the coming into force of the provisions of Chapter IV of the Rajasthan Finance Act, 1986 shall be reduced by the amount specified by the State Government, by Notification in the Official Gazette, calculated on the basis of every financial year or part thereof for which such vehicle was used or kept for use in the State from the date of its registration to the date immediately preceding such coming into force but subject to the minimum amount specified by the State Government. (2) Private motor vehicles registered out of the State and brought temporarily into use or kept for use in the State for a period not exceeding thirty days shall be exempted from payment of tax. 14. Transport vehicles are covered by Part II. Item I and lI are the crucial entries which are under consideration before us. They are, therefore, set out below:- PART II Transport Vehicles Annual Quarterly I. Motor vehicles plying for hire or reward for the convenance of passengers and sight person luggage of passengers - (a) Motor vehicles with a seating capacity not exceeding 6 including driver 50.00 per seat 14.00 per seat (b) Motor vehicles with a seating capacity exceeding 6 but not more than 25 seats including driver and conductor 60.00 per seat 16.30 per seat per seat (c) Motor Vehicles with a seating capacity of more than 25 seats but not more per seat per seat than 40 including driver and conductor 80.00 per seat 25.00 per seat (d) Motor Vehicles with seating capacity more per seat per seat than 40 including driver and conductor 100.00 per seat 30.00 per seat II. Motor vehicles registered in Rajasthan State and intended 25.00 for convenance of passengers per day and luggage in special or temporary circumstances and for a limited period will be permitted to ply on payment of daily tax. Such tax will be for a calendar day beginning and ending at mid-night. 25.00 per day - 15. Item III deals with goods vehicles and the basis of the tax depends on the loading capacity. Part III deals with vehicles registered outside the State but are using the roads in Rajasthan under temporary permits. Item 2 of this part deals with Motor vehicles intended for convenience of passengers and luggage in special or temporary circumstances for a limited period. The tax provided under this item is as under:- PART IIIVehicles registered outside the State using roads in Rajasthan under temporary permit 2. Other motor vehicles intended for convenance of passengers and luggage in special or temporary circumstances for a limited period. 500.00 for 30 days or part thereof Part IV deals with the levy of lax on dealers and manufacturers. The notification specifying the rates of tax issued by the Government under section 4 of the Act also contains four parts on the lines of the Schedule prescribing maximum rates. items I and 11 of this Schedule annexed to this notification are extracted below: PART II Transport Vehicles I. Motor vehicles plying for hire or reward for the convenience of passengers and light personal luggage of passengers:- (a) Motor Vehicles with a seating capacity upto 25 seats including driver and conductor. <F30171M>L<F255D> 50.00 per seat <F30171M>L<F255D> 14/- pear seat. (b) Motor Vehicles with a seating capacity of more than 25 seats but not more per seat per seat than 40 including driver (c)and conductor. <F30171M>L<F255D> 55/- per seat <F30171M>L<F255D> 15/- per seat. (c) Motor Vehicles with a capacity exceeding 40. <F30171M>L<F255D> 75/- per seat <F30171M>L<F255D> 20/- per seat II. Motor Vehicles registered in Rajasthan State and intended for convenience of passengers and luggage in special or temporary circumstances and for a limited period will be permitted to ply on payment of daily tax. Such tax will be for a calendar day beginning and ending at midnight. <F30171M>L<F255D> 20/- per day 16. Motor Vehicles registered in Rajasthan State and intended for convenience of passengers and luggage in special or temporary circumstances and for a limited period will be permitted to ply on payment of daily tax. Such tax will be for a calendar day beginning and ending at midnight. <F30171M>L<F255D> 20/- per day 16. Shri Vyas-counsel for the petitioners-has urged that all vehicles, which arc being plied for hire or reward are covered by item I and that Item II would apply to such vehicles which are not plied for hire or reward. He has further submitted that Item II would be attracted only in those cases where the vehicles arc exempt from paying the road tax under section 3 of the Act. We are afraid, we cannot confine the scope of Item. No. I and II as suggested by Shri Vyas. The limitation sought to be put by Shri Vyas is not burnt out from the reading of the two Items and it would not he proper nor permissible for us to introduce any limitation in the scope of these items. At the same time, we are unable to accept the construction put by the learned Additional Government Advocate. He has submitted that all vehicles, which are being plied on temporary permits, would fall, not under item I but, under item II of the Schedule. As already observed, the impost under the Act is not dependent upon related to the nature of the permit issued under the provisions 'f the Motor Vehicles Act When we read these items in the light of the scheme of the Act and the schedule, it becomes at once clear that Item I of Part II is the primary entry which would govern the tax on motor transport vehicles. All the motor transport vehicles plying for hire or reward for the convenience of passengers are covered under this item. Vehicles, other than transport vehicles, constructed and used for convenience of persons are charged one time tax on the basis of sitting capacity tinder item Ill of part 1 and annually or quarterly under item VI of that part. As regards motor transport vehicles, item I of Part II is the relevant item. It is comprehensive and includes all transport motor vehicles plying for hire or reward for the convenience of passengers. As regards motor transport vehicles, item I of Part II is the relevant item. It is comprehensive and includes all transport motor vehicles plying for hire or reward for the convenience of passengers. The scope of this item cannot be confined only to such motor vehicles which are plied on non-temporary permits. As already observed, the levy of tax under section 4 of the Act is not related to or contingent upon any permit under the Motor Vehicles Act. item I would, therefore cover all transport vehicles plying for hire or reward for carrying passengers irrespective of the fact whether the vehicle is operated on temporary or on non-temporary permit. Item II of Part II deals with a special situations. It contains an enabling provision. We have already seen that Section 5 requires every operator of the vehicle to pay the tax in advance. On payment of tax. the Taxation Officer grants a tax certificate or a token under section 10. No motor vehicle liable to tax under this Act can be used or kept for use in Rajasthan unless it is accompanied by a tax certificate or a token. Item II of Part II permit the plying of vehicle on payment of daily tax. This item applies to motor vehicles which are regisicied in the State of Rajasthan and are intended for conveniance of passengers in special or temporary circumstances and for a limited period. When we contrast this item with the items in Part III which governs vehicles registered outside the State but using the roads in Rajasthan. it becomes evident that while in Part III the law framers have used the expression vehicles registered outside the State using roads in Rajasthan tinder temporary permit", in Item II of Part II the language employed is will be permitted to ply on payment of daily tax." In this item, the term temporary permit has rot at all, been used. Not that the framers were not aware of the term temporary permits which has acquired a special significance under the Motor Vehicles Act nor do we think that the ommission of these crucial words can be attributed to mere inadvertance. The deliberate use of the words "will be permitted to ply" was meant to enact in Item II an enabling and a permissive clause to permit the plying of vehicles on payment of daily tax under special circumstances. The deliberate use of the words "will be permitted to ply" was meant to enact in Item II an enabling and a permissive clause to permit the plying of vehicles on payment of daily tax under special circumstances. The vehicles which could not otherwise be plied in the absence of a tax certificate or a token, which could be obtained only after payment of tax in advance, could be plied on payment of daily tax, by virtue of this item.Further, the omission of the terms temporary or non-temporary permit in item I or item II of part II is indicative of the fact that the levy of tax under these items is not related to or dependent the existence of temporary or non-temporary permit. In fact, the tax in item I is based on the seating capacity of the vehicle and not on the nature of a permit under the Motor Vehicles Act. Items I and II do not represent a division based on non-temporary or temporary permits. 17. The Additional Government Advocate invited our attention to rule 34 and urged that this rule authorises levy on all transport vehicles run on temporary permits. Rule 34 reads as under:- "34. Payment of Daily Tax:-In the case of transport vehicles plying on daily permits the daily tax at the rates specified in item II of part II of the Schedule to the Act will be paid by the owner or the driver or any other person in charge of such vehicle, to the Taxation Officer or to the officers. authorised by him in writing in this behalf at the time of making application for the grant of a temporary permit". After giving our full consideration to the submissions made by the Additional Government Advocate we are not persuaded to agree to the interpretation sought to be put by him. Rule 34 neither levies the tax nor specifies the rate thereof. The levy is governed by section 4 of the Act and the rate is fixed under the Schedule. We have already held that neither the Act nor the Schedule is dependent upon or related to the nature of a permit issued under the Motor Vehicles Act. In terms of" Section 4 read with the Schedule of rates all transport motor vehicles plied on temporary permits are not comprehended in item II. We have already held that neither the Act nor the Schedule is dependent upon or related to the nature of a permit issued under the Motor Vehicles Act. In terms of" Section 4 read with the Schedule of rates all transport motor vehicles plied on temporary permits are not comprehended in item II. Rule 34 does not have the effect of enlarging the scope of Section 4 or the Schedules. Article 265 of the Constitution says, in terms that no tax shall be levied or collected except by the authority of law. The term 'law' in this article, means an Act of the Legislature. It does not permit taxation by a mere rule or an, order issued by the executive unless the statute expressly confers such power on the rule making authority. In the present case. the Additional Government. Advocate could not point out any provision in the Act authorising the Government to levy tax by framing a rule. Rule 34 could not therefore, be interpreted in a manner which may have the incidence of levying or enhancing the rate of tax fixed. Under the schedule annexed to the Act. In fact, rule 34, on a true interpretation, has no such effect. Rule 34 merely lays down that the daily tax will be paid by the owner or driver or any person incharge of the vehicle at the time of making the application for the grant of it temporary permit. This rule merely fix, the time when the tax has to be deposited and does not have the effect of changing or increasing the rate of tax already fixed by item II Part II, on all transport vehicles run on temporary permits. This rule uses the expression in the case of transport vehicles plying on daily permit daily tax at the rates specified in item II of part It of the Schedule to the Act will be paid............'. Counsel for the parties are agreed that the Motor Vehicles Act nowhere contemplates a permit known as daily permit'. Item II of part II of the Schedule enables the plying of vehicles, registered in the State and intended for convenience of passengers in special or temporary circumstances and for a limited period, on payment of daily tax which is fixed as Rs. 20.00 per day. Item 11 does not use the expression daily permit, or temporary permit. Item II of part II of the Schedule enables the plying of vehicles, registered in the State and intended for convenience of passengers in special or temporary circumstances and for a limited period, on payment of daily tax which is fixed as Rs. 20.00 per day. Item 11 does not use the expression daily permit, or temporary permit. As already said, this item contains a permissive clause and permits vehicles operating in certain contingencies, to ply on payment of daily tax. We are clearly of the opinion that rule 34 cannot be so construed as to exclude from the ambit of item I part II of the Schedule all vehicles operated on temporary permits and include them in item II. The Transport Vehicles, in respect of which lax has already been paid. as per the rates specified in item 1, cannot be subjected to the levy under item II. 18. Thus item I of Part II of the Schedule is the primary entry which fixed the rate of tax on motor transport vehicles. All motor transport vehicle plying on hire or reward would be liable to tax as per the rate fixed by item 1. Item I is quite comprehensive in scope and is not hedged with any limitation of temporary or non-temporary permit. Item 11 deals with and governs special situations and no further. In our view, therefor., the vehicles, in respect of which tax has already been paid in advance under item I, could not be subjected to the levy under Item II. We do not find any justification in law for recovering the difference between the tax specified under item II and the one already paid under item I by treating all vehicles plied on temporary permits to be liable to tax tinder item II. This is not borne out by the wordings of item II and the collection of the tax on this basis is clearly not authorised by law. 19. Having premised the position of the two items as above, we proceed to examine the validity of the Circular issued by the Additional Commissioner (Taxation) dated October 5, 1987. This is not borne out by the wordings of item II and the collection of the tax on this basis is clearly not authorised by law. 19. Having premised the position of the two items as above, we proceed to examine the validity of the Circular issued by the Additional Commissioner (Taxation) dated October 5, 1987. By this circular the Additional Commissioner (Taxation) has directed the Regional Transport Officer and the District Transport Officer to : (1) realise daily tax from the temporary permit holders of transport vehicles as per the rate fixed vide item 2 part II of the Schedule; (2) be aware that the provisions of the daily tax are effective from April 1, 1966; (3) adjust towards the daily tax the amount deposited quarterly or yearly in respect of such vehicles; (4) recover daily tax from the owners of all the transport vehicles plying on temporary permits as per the rate specified in Item 2 of part II of the Schedule issued under rule 34 and the Act alongwith the application for temporary permit and prior to its issuance; and (5) comply with these directions strictly. 20. As already observed, the tax levied under section 4 of the Act read with the Schedule annexed thereto is not dependent on the nature of a permit under the Motor Vehicles Act. The two items No. I and II in the Schedule do not carve out a division on the tax levy on the b Isis of temporary or non-temporary permits. The primary item, which governed the tax on transport vehicles used for carrying passengers for hire or reward, is item I and not item II Item I is comprehensive to include all transport vehicles plied on temporary or non-temporary permits. It is not confined to vehicles plied on non-temporary permits only. Item II deals with special situations. It is not correct to say that all temporary permit holders would fall under item II. If tax has been paid in respect of the vehicles under Item I. the same cannot again be brought to tax under Item II. Further, the operator of a vehicle, holding temporary permit cannot be compelled to pay tax. not under Item I, but under Item II. On a mere executive instruction or even it rule made by a State Government, without an express authorisation of the parent Act. no tax can be levied or collected. Further, the operator of a vehicle, holding temporary permit cannot be compelled to pay tax. not under Item I, but under Item II. On a mere executive instruction or even it rule made by a State Government, without an express authorisation of the parent Act. no tax can be levied or collected. If the impost cannot b., traced to the power under the Act, the levy made by it rule or an executive order would be plainly unconstitutional. In order to be valid, the levy must derive its source in a statute and must be collected strictly in conformity with its provisions. 21. In the present case, all temporary permit holders do not fall within the ambit of Item II of Part II of the Schedule and therefore, the owners or operators of transport vehicles, operating their vehicles on temporary permits, cannot be subjected to pay tax under Item II, if they have already paid tax under Item I. They cannot also, be made liable to pay the difference of the tax between Item I and Item II on the ground that the vehicle was plied on temporary permit. The impugned Circular issued by the Additional Commissioner (Taxation) travels far beyond the scope of the Act and the Shedules and deserves to be quashed. 22. Accordingly, we allow the writ petitions, quash the Circular dated October 5, 1987 issued by the Additional Transport Commissioner (Taxation), Rajasthan and direct the respondents not to recover and collect tax as per the demands raised in pursuance of the said Circular. In the circumstances of the case, we do not pass any order as to costs.Petitions allowed. *******