CHANDRAKANTARAJ J. ( 1 ) THE challenge in this batch of Writ Petitions is to the competence of the State Government to levy additional tax on motor vehicles permitted to be used as stage carriages in the event of such stage carriages carrying passengers in excess of and in addition to the number of passengers permitted in the permit granted to them under the motor Vehicles Act. The facts themselves are not in dispute that the petitioners are all stage carriages owners. It is also not disputed that on account of checkings made when in transit, the concerned stage carriages operated by the petitioners were found carrying passengers in excess of the permitted number under the permit issued in accordance with Section 48 of the motor Vehicles Act, 1939 (since repealed ). ( 2 ) THE Karnataka Motor Vehicles Taxation Act, 1957 is a State enactment in exercise of its legislative power conferred by Entry 57 of List ii of Seventh Schedule of the Constitution. ( 3 ) BY sub-section (4) of Section 3 of the Karnataka Motor Vehicles Taxation Act, which came to be inserted by Karnataka Amendment act No. 14 of 1989, which reads as follows:" (4) Notwithstanding anything contained in sub-sections (1) and (2), a special additional tax at the rates specified in Part- D of the Schedule shall be levied on motor vehicles suitable for use on roads carrying passengers or goods in excess of the permitted capacity of the vehicles. "schedule 'd' was introduced after 'c to the Principal act. The question raised is no longer res integra. In a case arising out of the decision rendered by this Court in the case of M. Narasimhaiah v Deputy Commissioner for Transport, Bangalore and Another, the Supreme Court in Civil appeal No. 3031/87 by its order dated 24-11-1987, held over-ruling this High Court's decision in the aforementioned case reported in I. L. R. 1985 karnataka, Page 2711, that it was impermissible to tax the vehicle owners permitted to ply stage carriages merely on account of the excess passengers carried by them over and above what they were permitted under the permits. In the course of the Judgment, the Supreme Court held that such violation of the condition of the permit prescribing number of passengers or the extent of goods that may be carried could not be the subject-matter of levy of tax, but was one for ap propriate action under Section 60 of the Motor vehicles Act, 1939 (since repealed ). ( 4 ) AS laid down in the case of Automobile Transport (Rajasthan) Ltd. , Etc. v State of Rajasthan and Others, AIR 1962 SC 1406 , the tax is in the nature of a compensatory tax for use of the road and it does not depend upon the number of passengers carried. Whatever the permit issued under the Motor Vehicles Act may prescribe as to the maximum number of persons or the maximum weight of the goods to be carried by such motor vehicles plying the roads within a State, there is no reduction of tax for carrying less number of passengers or less amount of goods than permitted because the levy is not on the passengers or the goods, but on the use of the road by the motor vehicles. Therefore, commending to the State Government to strictly enforce section 60 of the earlier Motor Vehicles act (now Section 86 in the new Act), the levy of tax on excess passengers and goods was held to be incompetent. ( 5 ) THEREFORE, following the aforementioned decision of the Supreme Court, these petitions are allowed. It is needless for us to make the observation the Supreme Court has already made in regard to over-loading. The State must give appropriate directions to the machinery meant for enforcing the provisions of the Motor vehicles Act. Therefore, we have no hesitation to declare that it was beyond the competence of the State Legislature to levy tax on excess passengers carried, under Entry 57 of List II of the seventh Schedule to the Constitution. Petitions are therefore allowed as prayed for. But there will be no orders as to costs. Writ Petition Allowed. --- *** --- .