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        Case ID :

        2002 (4) TMI 947 - SC - Indian Laws

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        Regulatory forest transit fee upheld despite no strict quid pro quo requirement for the levy. The transit fee levied under Rule 5 of the U.P. Transit of Timber and Other Forest Produce Rules, 1978 is a regulatory levy connected with control of ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Regulatory forest transit fee upheld despite no strict quid pro quo requirement for the levy.

                              The transit fee levied under Rule 5 of the U.P. Transit of Timber and Other Forest Produce Rules, 1978 is a regulatory levy connected with control of timber transit under the Indian Forest Act, 1927. Because the rules were framed to regulate transit, prescribe passes, and support depot and marking arrangements, the levy was not required to satisfy a strict compensatory quid pro quo standard. Exact equivalence between the fee and a specific service was unnecessary, and the absence of a demonstrated direct service in return did not invalidate the levy. The fee was therefore upheld as valid and not liable to be struck down for want of quid pro quo.




                              Issues: Whether the transit fee levied under Rule 5 of the U.P. Transit of Timber and Other Forest Produce Rules, 1978 was invalid for want of quid pro quo.

                              Analysis: The levy was imposed under rules framed under Sections 41, 42, 51 and 76 of the Indian Forest Act, 1927, which confer power to regulate the transit of timber and other forest produce, prescribe passes, provide for fees, and establish depots and marking arrangements. The fee was held to be a regulatory levy connected with transit control and not a compensatory fee. For a regulatory fee, proof of direct quid pro quo or exact equivalence between service and payment is not necessary. The absence of a demonstrated service in return, therefore, did not invalidate the levy.

                              Conclusion: The transit fee under Rule 5 is valid and not liable to be struck down for absence of quid pro quo.


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