higher tax, when such use is in contravention of the conditions of permit. It only refers to the class of vehicles as are defined under the Motor Vehicles Act and lays down that notification of the Government shall specify the class of vehicles on which the rates of tax shall be levied and the proviso says that rate of tax shall not exceed the maximum specified in Column (2) of the schedule. Charging section nowhere authorises levy of any additional tax whenever there is any violation of permit or conditions of permit. Unless the charging section authorises or permits levy of additional tax or charges, which is, a penalty the same cannot be treated as part of regulatory or compensatory tax. In case interpretation as is sought to be put forth on behalf of the respondents and as was put forth in the two Full Bench decisions in Peda Venkaiah's case and Govindarajulu's case is accepted, on the same reasons as are given in M. Narasimhaiah's case by the Supreme Court, the words "in respect of vehicles permitted to" used in item 4 of the First Schedule to the Taxation Act would become meaningless and ineffective. It has thus to be held that the two Full Benches of this Court which did not deal with the proviso to Section 3 of the Taxation Act, 1963, Rule 5 of the Taxation Rules and quoted words of item 4 of the First Schedule to Taxation Act are no longer good law in view of the ratio of the decision of the Supreme Court in M. Narasimhaiah's case. (emphasis supplied).
