The Telangana High Court recently ruled that the road tax paid under the Motor Vehicles Act while purchasing the cars, and collection of toll tax at National Highway Toll Booths do not amount to double taxation.
Case of the Petitioners
The petitioners instituted the Public Interest Litigation stating that they were owners of motor vehicles, they had paid the tax at the time of purchase of the vehicles and the respondents were compelling them to pay toll tax which was an addition to the tax paid by the petitioners. The petitioners thus prayed the payment at the toll tax to be declared as illegal and unjust. It was further contended that the toll tax was not being paid by certain dignitaries and the exemption is in violation of Article 14 of the Constitution of India.
Case of the Respondent
The National Highways Authority of India stated that keeping in view the financial crunch which was in the way of development of Highways; the Central Development took a policy decision in order to ensure that funds were made available. By virtue of this, Section 8A was incorporated into the National Highway Act 1956.
Observation of the Court
The Court observed that Government of India took a policy decision by adding Section 8A under the National Highways Act in order to provide road infrastructure throughout the country by way of Public Private Partnership in the matters pertaining to construction, widening and up gradation and strengthening of roads. Even the Rules framed under the National Highways Act provide for collection of Toll Tax such as the National Highways, The National Highway Fees Rules 2008. The Petitioner did not challenge Section 8A of the National Highways Act or the Rules of Section 8A or the Rules there under. Therefore, the action is in accordance with the Act and Rules and cannot be intervened.
On the issue of tax collection, the Court stated that service roads were available and short distance travelers could easily avail the facility of service roads. Thus Court did not find any reason to grant reliefs as no case was made out for interference in the matter. Thus the PIL was dismissed.
Case Details
Before: Telangana High Court
Case Title: D. Vidya Sagar v. Union of India and other
Coram: Hon’ble Mr.
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