Transit fee recovery under amended forest rules was standardised pending final hearing, with refund and interest protection if petitions succeed.

Interim directions on recovery of transit fee under the amended U.P. Transit of Timber and other Forest Produce Rules, 1978 were made uniform pending final hearing. The Supreme Court allowed the State to recover transit fee at the rate fixed by the third amendment, but only subject to the result of the petitions. If the petitioners ultimately succeeded, the amount collected was to be refunded with interest at 9% per annum. The modified arrangement was not to apply to exempted goods or to industrial by-products such as clinker and fly ash.

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Issues: Whether the existing interim arrangements concerning recovery of transit fee under the amended U.P. Transit of Timber and other Forest Produce Rules, 1978 should be made uniform and modified pending final hearing.

Analysis: The matters were already listed for final hearing, but the interim directions operating in different petitions were inconsistent. Some cases had no interim order, some required payment subject to outcome, and some had unconditional stay. In view of the common controversy and the need for a uniform arrangement, the Court modified the interim orders so that the State could recover transit fee at the rate stipulated in the 3rd amendment, while keeping such recovery subject to the result of the petitions. Protection was also provided by directing refund with interest at 9% p.a. if the petitioners ultimately succeeded, and the modification was excluded for exempted goods and industrial by-products such as clinker and fly ash.

Conclusion: The interim orders were modified and the State was permitted to recover transit fee at the 3rd amendment rate subject to the outcome of the petitions, with refund and interest if the petitioners succeeded.

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