The Jharkhand High Court struck down the State Government’s 2021 rules that imposed a “composition user fee” on mineral laden vehicles, calling the levy unconstitutional. The division bench of Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar said that the State lacked the legislative authority to impose such a charge under the existing law.
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Court Quashed 2021 Highway Fee Rules
The division bench quashed the Jharkhand Highway Fee (Determination of Rates and Collection) Amendment Rules, 2021, terming them ultra vires of the Levy of Tolls Act, 1851. The court observed that such fees can only be levied as toll tax on roads and bridges constructed or repaired by the State at its own expense, and not arbitrarily on mineral transport routes.
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Bench Called Levy Discriminatory
The court also noted that the rule was discriminatory as it specifically targeted vehicles transporting minerals above nine tonnes, while other commercial heavy vehicles were not subjected to the same fee. It stressed that taxation and user charges must have a clear legal basis and cannot be imposed without proper identification of the roads on which they are to be charged.
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Refunds and Adjustments Ordered
The bench directed that any fees already collected from transporters be adjusted against their future dues, giving partial relief to affected mining and transport companies. The verdict came on over 250 petitions, including one filed by Triveni Engicon Company, which had challenged the levy on the ground that it was arbitrary and illegal. The ruling is expected to impact revenue collection from mineral transportation in Jharkhand and may prompt the State Government to frame a new law in compliance with the Levy of Tolls Act before reimposing any such fee.
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