1958 : Bom.

LXVII ] Gujarat Motor Vehicles (Taxation of Passengers) Act, 1958

GOVERNMENT OF GUJARAT

LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT

Bombay Act No. LXVII of 1958

The Gujarat Motor Vehicles (Taxation of Passengers)

Act, 1958

(As modified upto the 31st October, 2012)

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[1958 : Bom. LXVII Gujarat Motor Vehicles (Taxation of Passengers) Act, 1958

THE GUJARAT MOTOR VEHICLES (TAXATION OF PASSENGERS)

ACT, 1958

CONTENTS.

PREAMBLE.

SECTIONS.

1. Short title, extent and commencement.

2. Definitions.

3. Levy of tax on passengers carried by stage carriages.

3A. [Deleted.]

4. Submission of returns.

5. Tax to be paid every month into Government treasury.

6. Procedure where no returns are submitted, etc.

7. Fares escaping assessment.

8. Penalty for non-payment of tax.

9. Recovery of tax, etc.

9A. Liability of operator to pay interest.

9AA. Refund of excess payments.

10. Restrictions on the use of stage carriages in certain cases.

11. Appeal against demand.

12. Maintenance of accounts and registers.

13. Power to order production of accounts.

14. Powers of entry and inspection.

15. Offences and penalties and competent court.

16. Offences by companies.

17. Composition of offences.

18. Officers to be public servants.

19. Bar of certain proceedings.

20. Limitation for suits and prosecutions.

21. Power to exempt certain passengers, from payment of tax.

22. Power to make rules.

SCHEDULE.
 1958 : Bom. LXVII ] Gujarat Motor Vehicles (Taxation of Passengers) Act, 1958

BOMBAY ACT NO. LXVII OF 1958.1

[THE GUJARAT MOTOR VEHICLES (TAXATION OF PASSENGERS)

ACT, 1958]
[3rd September, 1958]
Adapted and modified by the Gujarat Adaptation of Laws (State and Con-
current Subjects) Order, 1960.

Amended by Guj. 12 of 1961.

Amended by Guj. 15 of 1963.
Amended by Guj. 26 of 1964.
Amended by Guj. 13 of 1965.
Amended by Guj. 37 of 1965.
Amended by Guj. 10 of 1969.
Amended by Guj. 18 of 1969.
Amended by the President's Act 10 of 1971.
Amended by Guj. 13 of 1972.
Amended by Guj. 6 of 1977.
Amended by Guj. 19 of 1982.
Amended by Guj. 1 of 1991
Amended by Guj. 11 of 2003.
Amended by Guj. 15 of 2011.

An Act to provide for the levy of a tax on passengers carried

in certain classes of public service vehicles
in the State of Bombay.

WHEREAS it is expedient to provide for the levy of tax on passengers carried

in certain classes of public service vehicles in the State of Bombay; It is hereby
enacted in the Ninth Year of the Republic of India as follows:—
1a Short title, extent
1. (1) This Act may be called the [Gujarat] Motor Vehicles (Taxation of and commence-
Passengers) Act, 1958. ment.

(2) It extends to the whole of the 2[State of Gujarat].

(3) This section shall come into force at once, and the rest of the Act shall
come into force on such date as the State Government may, by notification in
the Official Gazette, appoint.

2. In this Act, unless the context otherwise requires,— Definitions.

(1) "fleet owner" means an operator holdings a permit for one hundred or
more stage carriages;

(2) "month" means a calendar month;

(3) "municipal area" means an area specified in the Schedule;

3
[(3A) "new capital area" means the area comprised in the new capital within
Guj. X of 1960. the meaning of clause (c) of section 2 of the Gujarat New Capital (Periphery)
Control Act, 1960;]
4
[(4) "operator" means any person whose name is entered in the permit as the
holder thereof and where stage carriage is used or caused or allowed to be
used without a permit includes a person in whose name that vehicle is
59 of 1988. registered under 5[the Motor Vehicles Act, 1988], or any person having the
possession or control of such vehicle; and 'to operate' shall be construed
accordingly;]

(5) "prescribed" means prescribed by rules made under this Act;

(6) "permit" means a permit granted or countersigned under 5[the Motor

59 of 1988. Vehicles Act, 1988], authorising the use of a motor vehicle as a stage carriage
or contract carriage in any part of the State;

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 [1958 : Bom. LXVII Gujarat Motor Vehicles (Taxation of Passengers) Act, 1958

(7) "stage carriage" means a motor vehicle carrying or adapted to carry more
than six persons excluding the driver, which carries passengers for hire or
reward at separate fares paid by or for individual passengers, either for the
whole journey or for stages of the journey, and includes such a carriage 6[ * *
59 of 1988.
* ] when used as a contract carriage within the meaning of 5[the Motor
Vehicles Act, 1988];

(8) "tax" means the tax referred to in section 3;

(9) "Tax Officer" means such officer as the State Government may, by
notification in the Official Gazette, appoint to be the Tax Officer for the
whole State or for any area or areas for the purposes of this Act, and the State
Government may appoint more than one officer as Tax Officers for the whole
State or for any area;

(10) the words and expressions used but not defined in this Act shall have the
meaning assigned to them in 5[the Motor Vehicles Act, 1988] and the rules 59 of 1988.

made thereunder.
Levy of taxes on
7
passengers carried 3. [(l) On the commencement of the Bombay Motor Vehicles (Taxation of
by stage carriages.
Passengers) (Gujarat Amendment) Act, 1963, there shall be levied and paid to Guj. XV of 1963.
the State Government, a tax on all passengers carried by stage carriage at
such rate as would yield an amount equal to 8[seventeen and one half per
cent.] of the inclusive amount of fares payable to the operator of a stage
carriage:
9
[Provided that where such stage carriage lies exclusively within the
new capital area or a municipal area or exclusively on such routes serving the
new capital area or a municipal area and also areas adjacent to either of these
areas or serving the new capital area, a municipal area and the area between
them, as may be approved by the State Government, the rate shall be such as
would yield such amount, not exceeding 7 1/2 percent, of the inclusive
amount of fare so payable, as may from time to time be notified in the
Official Gazette by the State Government] :
Provided further that subject to such conditions as the State
Government may, by notification in the Official Gazette, determine in this
behalf, no such tax shall be leviable on any student 10[in respect of journeys
not more than two per day and from an educational institution or any other
place attended by him in the bona fide prosecution of his studies or for
undergoing any training in compliance with the requirements of such
educational institution.]

Explanation.--[This Explanation which was added by the President's Act

No. 10 of 1971 has ceased to have effect on 30th November 1972.]

(2) After calculating the total amount of tax payable under sub-section (1) out
of the total amount received by an operator during each month on account of
inclusive fares in respect of the stage carriage or stage carriages held by him
under a permit, the total amount of tax shall wherever necessary be rounded
off to the 11[nearest rupee, the fraction of a rupee not exceeding fifty paise
shall be ignored and the fraction of a rupee exceeding fifty paise shall be
taken as a rupee].

3A. Levy of additional tax on passengers carried by stage carriages. [This section
which was inserted by the President's Act, 1971 (Guj. 10 of 1971) has ceased to have
effect on the expiry of its term of one year on 30th November, 1972.]

Submission of 4. (1) In respect of the stage carriage or stage carriages held by him, the operator
returns.
shall deliver or cause to be delivered to the Tax Officer or to such prescribed
officer as the Tax Officer may specify, a return in the prescribed form and
manner either daily or at such intervals as may be prescribed .

Provided that different rules may be prescribed for the purpose of this
1958 : Bom. LXVII ] Gujarat Motor Vehicles (Taxation of Passengers) Act, 1958

sub-section in relation to fleet-owner from those in relation to other operators.

(2) When any return is received by a prescribed officer he shall forward it to

the Tax Officer within the prescribed period and in the prescribed manner.
Tax to be paid
5. The tax payable during any month in accordance with the returns submitted under every month into
section 4 shall be paid into a Government treasury 12[or in such other manner as may Government
treasury.
be prescribed] by the operator and the receipt evidencing such payment forwarded to
the Tax Officers, on or before such date or dates of the month immediately
succeeding as may be prescribed in the case of fleet-owners and other operators.

6. In the following cases that is to say,-- Procedure where no

returns are
submitted, etc.
(a) where no return have been submitted by the operator in respect of any
stage carriage for any month or portion thereof, or
(b) where the returns submitted by the operator in respect of any stage
carriage for any month or portion thereof appear to the Tax Officer to be
incorrect or incomplete,

the Tax Officer shall, after giving the operator a reasonable opportunity in
case (a) of making his representation, if any, and in case (b) of establishing
the correctness and completeness of the returns submitted by him, determine
the sum payable to the State Government by the operator by way of tax du-
ring such month or portion thereof;

Provided that the sum so determined shall not exceed the maximum
tax which would have been payable to the State Government if the stage
carriage had carried its full complement of passengers during such month or
portion thereof.

7. If, for any reason, the whole or any portion of the tax leviable under this Act for Fares escaping
assessment.
any month has escaped assessment, the Tax Officer may, at any time within, but not
beyond one year from the expiry of that month, assess the tax which has escaped
assessment, after issuing a notice to the operator and making such inquiry as the
officer may consider necessary.

8. Where the whole or any portion of the tax payable to the State Government in Penalty for non-
payment of tax.
respect of any stage carriage for any month or portion thereof in pursuance of
sections 5, 6 and 7 has not been paid to it in time, the Tax Officer may, in his
discretion, levy in addition to the tax so payable, a penalty not exceeding 25 percent.
of the maximum tax which would have been payable to the State Government if the
stage carriage had carried its full complement of passengers during such month or
portion thereof.

9. (1) In the cases referred to in sections 6, 7 and 8 the Tax Officer shall serve Recovery of tax,
etc.
on the operator a notice of demand for the sums payable to the State
Government and the sums specified in such notice may be recovered from the
operator as arrears of land revenue.

(2) Where the sums specified in the notice of demand are not paid within
fifteen days from the date on which the notice was served on the operator, the
stage carriage in respect of which the tax is due and its accessories may be
distrained and sold under the appropriate law relating to the recovery of
arrears of land revenue whether or not such vehicle or accessories are in the
possession or control of the operator:

Provided that no distraint shall be made in pursuance of this sub-

section except at the instance or with the consent of the State Government or
such Officer as may be authorised by the State Government in this behalf.

(3) Distraints under sub-section (2) may also be made by such officers or
class of officers as the State Government may, by general or special order, di-
rect and the officer making any such distraint shall forward the proceedings
thereof together with the distrained articles to the Collector for further action
under sub-section (2).

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13
[9A. (1) Where the whole or portion of the tax payable to the State Government in
Liability of operator
to pay interest. respect of any stage carriage in pursuance of section 5, section 6 or section 7
has not been paid in time, the operator shall be liable to pay to the State
Government simple interest at twelve percent. per annum—

(a) on the outstanding sum of the tax payable in pursuance of section

5, from the date prescribed under that section for the payment of such
tax, and

(b) on the outstanding sum of the tax payable in pursuance of section

6 or section 7, from the day next after the expiry of the period of
fifteen days referred to in sub-section (2) of section 9,

until the date of such payment:

Provided that the amount of interest payable under this sub-

section shall in no case be less than five rupees.

(2) Where the whole or any portion of interest payable to the State Govern
ment in pursuance of sub-section (1) has not been paid, the Tax Officer shall
serve on the operator a notice of demand for the amount of interest payable to
the State Government.

(3) If the amount of interest specified in the notice of demand served under
sub-section (2) is not paid to the State Government within fifteen days from
the date on which such notice is served, the amount of interest shall be
recoverable from the operator as arrears of land revenue.

(4) Notwithstanding anything contained in sub-section (3), the provisions of

sub-sections (2) and (3) of section 9 shall, so far as may be, apply in respect
of the recovery of the amount of interest specified in the notice of demand
served under sub-section (2) as they apply in respect of recovery of the tax.]
14
Refund of excess [9AA.] The Tax Officer shall refund to an operator in such manner as may be
payments.
prescribed 15[the amount of tax, penalty and interest (if any)] paid by such operator in
excess of the amount due from him. The refund may be either by cash payment or, at
the option of the operator by deduction of such excess from 15[the amount of tax,
penalty and interest (if any)] due in respect of any other period :

Provided that, the Tax Officer shall first apply such excess towards the
recovery of any amount due in respect of which notice 16[under sub-section (1) of
section 9 or, as the case may be, under sub-section (2) of section 9A] has been served
on the operator, and shall then refund the balance (if any).]
10. No stage carriage shall be used on any public road in the State—
Restrictions on the
use of stage
carriages in certain (a) in case any 17[tax, penalty or interest] payable in respect thereof remains
cases. unpaid for more than fifteen days after the notice of demand referred to in
18
[section 9 or section 9A] has been served on the operator, until such 17[tax,
penalty or interest] is paid, or

(b) in case returns required by section 4 have not been submitted, if daily
returns are required, for more than seven days, and if returns at less frequent
intervals have been prescribed, for such number of times and during such
period as may be prescribed, until the returns are submitted :

Provided that the Tax Officer may, if the operator proves to his
satisfaction that the failure to submit the returns referred to in clause (b) was
not deliberate, exempt the stage carriage from the operation of that clause.
Appeal against 11. (1) Any operator objecting to a notice of demand served on him under section
demand.
9 19[or under section 9A] may, within thirty days of the service thereof, appeal
to the prescribed authority :

Provided that no appeal shall be entertained unless it is accompanied

 1958 : Bom. LXVII ] Gujarat Motor Vehicles (Taxation of Passengers) Act, 1958

by satisfactory proof of the payment of the tax admitted by the appellant to be

due.
(2) The prescribed authority may, after giving the appellant an opportunity of
being heard, pass such orders on the appeal as it thinks fit.
Maintenance of
12. Every operator shall keep and maintain accounts and registers in such forms accounts and
as may be prescribed in respect of stage carriages and the fares collected in registers.

respect of passengers travelling therein.

13. The authority prescribed under sub-section (1) of section 11 or the Tax Power to order pro-
duction of accounts.
Officer or any officer empowered in this behalf by the State Government
may, by order, require any operator to produce such accounts, registers and
documents, and to furnish information relating to the stage carriages or the
fares collected in respect of passengers travelling therein, as may be specified
in the order.
Powers of entry and
14. (1) Any Officer authorised by the State Government in this behalf may at all inspection.
reasonable times enter into, inspect and search any stage carriage and any
place ordinarily used by the operator for garaging such vehicle or keeping
accounts of the business, for the purpose of seeing or verifying whether the
provisions of this Act or any rules made thereunder are being complied with.

(2) All searches made under sub-section (1) shall be made in accordance with
2 of 1974. the provisions of the 20[Code of Criminal Procedure, 1973].
15. (1) Any person who— Offences and penal-
ties and competent
court.
(a) being an operator, submits or allows to be submitted an incorrect
or incomplete return under section 4 or fails to submit a return as
required under that section ; or

(b) being an operator, fraudulently evades or allows to be evaded, the

payment of any tax due from him ; or

(c) being an operator, fraudulently makes or allows to be made any

wrong entry in, or fraudulently omits or allows to be omitted any
entry from, any statement submitted, or any accounts or register
maintained by him ; or

(d) wilfully acts in contravention of any of the provisions of this Act

or any rules made thereunder or any lawful orders passed in
accordance therewith ;

shall, on conviction, be punished with fine which may extend to one thousand
rupees, and if the Magistrate so directs in his order, the person convicted shall
pay in addition, as if it were a fine, such specified amount as the Magistrate
may determine to be the amount which the person convicted had evaded to
pay.

(2) No offence punishable under this Act shall be inquired into or tried by any
court inferior to that of 21[ * * *] a Magistrate of the second class.

16. (1) Where an offence under this Act has been committed by a company, every Offences by
companies.
person who at the time the offence was committed, was in charge of, and was
responsible to the company for the conduct of the business of the company, as
well as the company shall be deemed to be guilty of the of the offence and
shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any

such person liable to any punishment provided in this Act if he proves that the
offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence

under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of or is

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 [1958 : Bom. LXVII Gujarat Motor Vehicles (Taxation of Passengers) Act, 1958

attributable to any neglect on the part of, any director, manager, secretary or
other officer of the company, such director, manager, secretary or other
officer shall also be deemed to be guilty of that offence and shall be liable to
be proceeded against and punished accordingly.

Explanation.—For the purposes of this section,—

(a) "company" means a body corporate, and includes a firm or other

association of individuals ; and

(b) "director" in relation to a firm means a partner in the firm.

17. (1) The Tax Officer may, either before or after the institution of proceedings Composition of
offences.
for any offence punishable under section 15, accept from any person charged
with such offence by way of composition of the offence, where the offence
charged consists of the evasion of the tax, a sum of money not exceeding
double the amount of the tax recoverable, in addition to the amount of tax so
recoverable; and in other cases, a sum of money not exceeding two hundred
and fifty rupees.

(2) On payment of such sum as may be determined by the Tax Officer, under
sub-section (1), no further proceedings shall be taken against the accused
person in respect of the same offence.

XLV of 1860. 18. All officers acting under this Act shall be deemed to be public servants within Officers to be
the meaning of section 21 of the Indian Penal Code. public servants.

19. (1) No prosecution or other proceeding shall be instituted in a Criminal Court Bar of certain pro-
without the previous sanction of the State Government, against any officer or ceedings.

servant of the Government, for any act done or purporting to be done under
this Act.

(2) No officer or servant of the Government shall be liable in respect of any

such act in any civil or criminal proceeding, if the act was done in good faith
in the course of the execution of duties or the discharge of functions imposed
by or under this Act.

20. No suit or other proceeding shall be instituted against the State and no suit, Limitation for suite
and prosecutions.
prosecution or other proceeding shall be instituted against any officer or servant of
the Government in respect of any act done or purporting to be done under this Act,
unless the suit, prosecution or other proceeding is instituted within one year from the
date of the act complained of.

21. The State Government may, by notification in the Official Gazette, exempt totally Power to exempt
certain passengers,
or partially from payment of tax the passengers carried in stage carriages on such from payment of
inter-State route as may be specified in the notification or carried by stage carriages tax.
operating in furtherance of any educational, medical, philanthropic or other object.

22. (1) The State Government may make rules to carry out the purposes of this Power to make
rules.
Act,

(2) In particular and without prejudice to the generality of the foregoing

power, such rules may provide for—

(a) the officer to receive returns under section 4 and the intervals, if
any, at which returns under that section shall be submitted and the
period within which and the manner in which such officer, shall
forward the return to the Tax officer;

(b) the maintenance of accounts and registers and the submission of

returns and statements by operators;

(c) the manner of serving notices of demand under this Act;

(d) the duties and powers of officers appointed for the purpose of
enforcing the provisions of this Act ;
 1958 : Bom. LXVII ] Gujarat Motor Vehicles (Taxation of Passengers) Act, 1958

(e) the authority to which an appeal may be preferred under sub-

section (1) of section 11 ;

(f) generally regulating the procedure to be followed and the forms to

be adopted in proceedings under this Act;

(g) any other matter which is required or allowed by this Act to be

prescribed.

(3) The power to make rules conferred by this section shall, except on the first
occasion of the exercise thereof, be subject to the condition of the rules being
made after previous publication for a period of not less than one month.

(4) All rules made under this section shall be published in the Official Gazette
and shall, unless some later date is appointed, come into force on the date of
such publication.

SCHEDULE
(See section 2.)
Area within the jurisdiction of —
22
Bom. LIX of 1949.
(1) a Corporation constituted under [* * *] the Bombay Provincial Municipal
Corporations Act, 1949, 23[ * * * ], or
24
XXX IV of 1964. [(2) a municipality constituted or deemed to be constituted under the Gujarat
Municipalities Act, 1963].

II of 1924. (3) a Cantonment Board constituted under the Cantonments Act, 1924.
--------------------

1
For Statement of Objects and Reasons, see Bombay Government Gazette, 1958, Part V, Extra, p.
305.

This Act cease to have its effect on 1st January, 1972.
1a
The word “Gujarat” was substituted for the word “Bombay” by Guj. 15 of 2011, s. 3.
2
These words were substituted for the words "State of Bombay by the Gujarat Adaptation of
Laws (State and Concurrent Subjects) Order, 1960.
3
Clause (3A) was inserted by Guj. 18 of 1969, s. 2.
4
Clause (4) was substituted by Guj. 19 of 1982, s. 2(1).
5
These words and figures were substituted by Guj. 11 of 2003, s. 2.
5
These words and figures were substituted by Guj. 11 of 2003, s. 2.
6
The words "or other omnibus" were deleted by Guj. 19 of 1982, s. 2(8).
5
These words and figures were substituted by Guj. 11 of 2003, s. 2.
5
These words and figures were substituted by Guj. 11 of 2003, s. 2.
7
Sub-section (1) was substituted for the original by Guj. 15 of 1963, s. 2.
8
These words were substituted for the words "twenty five percent" by Guj. 1 of 1991,
s. 2.
9
The first proviso was substituted by Guj. 18 of 1969, s. 3.
10
These words were substituted for the words "in respect of one journey per day to and from
an educational institution attended by him in the bonafide prosecution of his studies" by Guj.
26 of 1964, s. 2.
11
These words were substituted for the words "nearest naya paise fraction of half a naya
paise and over being counted as one and less than half being disregarded" by Guj. 11 of
2003, s.3.
12
These words were inserted by Guj. 13 of 1965, s. 2.
13
Section 9A was inserted by Guj. 6 of 1977, s. 2 .
14
Section 9A was renumbered as section 9AA by Guj. 6 of 1977, s. 2.
15
These words and brackets were substituted for the words and brackets "the amount of tax
and penalty (if any)" by Guj. 15 of 1963 s. 3(1)
16
These words, brackets, figures and letter were substituted for the words, brackets and
figures "under sub-section (1) of section 9 ", by Guj. 15 of 1963, s. 3(2).
17
These words were substituted for the words "tax or penalty", by Guj. 15 of 1963, s. 4(1).
18
These words, figures and letter were substituted for the word and figure "section 9" by Guj. 15 of
1963, s. 4(2).
19
These words, figure and letter were inserted, by Guj. 15 of 1963, s. 5.
20
These words and figures were substituted *"for the Code of criminal Procedure, 1998" by Guj.
11 of 2003, s. 4.
21
The words "a Presidency Magistrate or” were deleted by the Gujarat Adaptation of Laws
(State and Concurrent Subjects) Order, 1960.
22
The words "the Bombay Municipal Corporation Act" were omitted by the Gujarat
Adaptation of Laws (State and Concurrent Subjects) Order, 1960.

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23
The words "or the City of Nagpur Corporation Act, 1948" were omitted, by the Gujarat
Adaptation of Laws (State and Concurrent Subjects) Order, 1960.
24
Item No. (2) was substituted by Guj. 13 of 1972, s. 4.