And the result for passengers and drivers who use the ride-sharing service UberX will be increased attempts to crack down on the service, and greater uncertainty about taxes to be charged on fares.

Uber has been trying to challenge the legality of the NSW government's attempts to prosecute UberX drivers for breaches of the Passenger Transport Act.

And on June 30, lawyers for Uber won a ruling from magistrate William Pierce in the Downing Centre Local Court that Roads and Maritime Services and its general manager of prosecution, Ray Duncan, did not have the authority to prosecute alleged breaches of the Passenger Transport Act.

But neither Uber nor Transport for NSW or RMS publicised the ruling at the time.

Uber had been attempting to curry favour with the government after Transport Minister Andrew Constance announced a review of taxi and taxi-like services, which opened up the possibility of UberX gaining some official acceptance.

But conflict between the insurgent technology company and authorities flared again this week, after Transport for NSW released a statement saying that, despite its failure to successfully prosecute 24 UberX drivers it had charged, it would start conducting "random roadside tests" to crack down on UberX.

The only explanation offered by TNSW about the failure of its prosecutions is that there were "evidentiary issues". The department has refused to answer questions about the ruling and its potentially widespread implications.

Meanwhile, taxi drivers who are losing business to Uber have been further angered by the government's bungling of the prosecution.

And, separately, Uber is also fighting a battle against federal tax authorities.

The Australian Taxation Office has ruled that from Saturday, August 1, UberX drivers would need to collect GST.

Uber challenged this order in the Federal Court late on Friday, but for the meantime says UberX fares will remain the same. It is encouraging UberX drivers, however, to seek their own advice.