Case Law Details
D. Vidya Sagar Vs Union of India (Telangana High Court)
Validity of Toll Tax when taxes required under Motor Vehicles Act (Road Tax) are been paid
The petitioners before this Court, who are advocates and owners of Hyundai Creta and Hyundai 1-20 and they have stated that while purchasing the cars, they have paid taxes as required under the Motor Vehicles Act and they cannot be forced to pay toll tax, which amounts to double taxation. The petitioners have also raised a serious objection in respect of exemption granted to certain class of persons from paying the toll tax.
Statutory provision of National Highways Act, 1956. Section 8A empowers the NHAI to enter into an agreement with any person in relation to the development and maintenance of the whole or part of a National Highway. It also empowers any person, with whom such agreement has been entered into, to collect and retain fees for services or benefits rendered by him as the Central Government may provide by Notification having regard to the expenditure involved in building, maintenance, management and operation of the whole or part of such National Highway, interest on the capital invested, reasonable return, the volume of traffic and the period of such agreement. The facts also make it very clear that NHAI has developed various sections of the National Highways by private financing under Public Private Partnership (PPP).
The Rules framed under the National Highways Act provides for collection of toll tax.
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