TaxTMI 
TaxTMI 
2002 (7) TMI 513
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.... cases they were heard together with consent of learned counsel for the parties and they are being disposed of by this judgment. 3.. For the sake of convenience we will refer to relevant facts with reference to Writ Petition No. 660 of 1982 filed by M/s. Mehta Foods Pvt. Ltd. against the State of Jammu and Kashmir represented by the Chief Secretary and the Secretary in Ministry of Finance of the Government of Jammu and Kashmir which is the subject-matter of civil appeal arising out of SLP (C) No. 16852 of 1999. In the petition filed under article 226 of the Constitution of India read with section 103 of the Constitution of Jammu and Kashmir before the High Court of Jammu and Kashmir the writ petition sought the following reliefs: "It is therefore, prayed that the Notification S.R.O. No. 348 dated August 20, 1982 and Notification S.R.O. No. 349 dated August 20, 1982 may be quashed by a writ of certiorari as the impugned notification is ultra vires the statute and that it also violates the fundamental right of the petitioner under articles 19(1)(g) and 14 of the Constitution of India and is otherwise ultra vires of article 286(1) of Constitution of India. The honourable Court may ....
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....at it is this process of bleaching which completely transforms the original look of the nuts and renders the outer shell softer than the original one. After bleaching, the walnuts are put in another machine for drying. This is done with a view to attain retention of 3 per cent of moisture content. After drying, the nuts are sorted manually with a view to eliminate unwanted nuts. The walnuts are inspected again with a view to ensure quality control. 6.. As regards walnut kernels and bitter apricots the process and treatment is the same which is applicable to walnuts. After the process of grading, the walnuts and bitter apricots are soaked overnight in water. They are then shelled by the semi-skilled labourers for removing the kernels with special emphasis on the object of obtaining maximum percentage of halves. After removing the kernels, they are dried by mechanical process. Later on, they are sorted out according to colour and size. This is achieved by use of motor driven conveyor belts. The halves thus removed are subjected to the process of gravity separation. By this process, the broken pieces are removed from the half pieces. Crumbs and dust is also removed. The pieces of cru....
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....r, and all persons employed in the management and collection of such tolls shall be liable to the same responsibilities as would belong to them if employed in the collection of the (excise) revenue under the Jammu and Kashmir (Excise) Act, 1958. 9.. The arguments raised in support of the challenge against the levy of additional toll tax were summed up by the High Court as follows: "(i) that levy of tolls visualises an element of quid pro quo. This would involve examination of the distinction between tax and fee; (ii) that no toll tax can be levied as the petitioners are using national highways which highways are being maintained by the Central Government; (iii) that under the National Highways Act of 1956, the responsibility of maintaining the highways is on the State Government. If any levy is to be made by the State Government then there has to be a specific agreement between the Central Government and the State Government and this agreement has necessarily to be approved by the Parliament. In the present case, it is submitted that no such agreement exists between the Central Government and the State Government and none has been placed before the Parliament, therefore, the S....
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....e using State highways also. Therefore, even if the concept of quid pro quo is made applicable, even then the petitioners cannot succeed. This is because as indicated above, in addition to the national highway, they are using State highway and also the roads which are not part of national highway; (v) that the vesting of national highway in the Central Government is only with a view to see that these are properly maintained. The ownership of soil remains with the State. On this reasoning also, the State Government can impose tax in question; (vi) that the above conclusions were the subject-matter of decision in the case of Girdharilal Anand Saraf v. State of Jammu and Kashmir AIR 1969 J&K 113. All these have been answered in favour of the State. The reasoning given by the Full Bench is a reasoning to which no exception can be taken. We respectfully concur with the view so expressed." 12.. Some of the arguments which were not there before the earlier Full Bench in Girdharilal Anand Saraf's case AIR 1969 J&K 113 are also answered against the petitioners. These are: "(i) that the requirement of laying a notification before the Parliament is not mandatory; (ii) that the activity w....
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....g goods at a port; a charge made for transport of goods, esp. by railway or canal. The expression "toll thorough" means where a town prescribes to have toll for every beast that goes through their town. The term "toll traverse" means where one claims to have an amount for every beast that is driven over his ground. (See The Shorter Oxford English Dictionary on Historical Principles, revised and edited by C.T. Onions, Third Edition, Volume II, page 2206). 14.. In Wharton's Law Lexicon, 14th Edition, pages 999-1000, the terms "toll", "toll-thorough" and "toll traverse" are defined as under: "By S. 3 'toll' includes 'any rate or other payment payable under the special Act for any passenger, animal, carriage, goods merchandise, articles, matters or things conveyed on the railway'. See Railway and Hunt v. Great Northern Railway Co. (1851) 10 C.B. 900. Toll thorough means, when a town prescribes to have toll for such a number of beasts, or for every beast that goes through the town, or over a bridge or ferry belonging to it. Toll traverse means, toll taken for every beast driven across a man's land. He may prescribe and distrain for it via regia." 15.. In Black's Law Dictionary, Sev....
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....d by sub-section (1) of section 3 of the Levy of Tolls Act Samvat 1995 (VIII of 1995) (1938 A.D.) and in supersession of Notification S.R.O. No. 341 dated August 19, 1982, the Government hereby direct that additional toll tax shall be levied at Re. 0.60 per kg. on dry fruit including almonds, walnuts and walnut kernels thereof exported out of State through Lakhanpur, Jammu Railway Station, Manwal and other toll posts as may be notified by the Government from time to time in addition to the toll payable in terms of S.R.O. No. 115 dated March 31, 1982." 20.. The Levy of Tolls Act, 1995 (1938 A.D.) was enacted with a view to consolidate in one Act the provisions of levy of tolls upon public roads and bridges in Jammu and Kashmir State. Section 3 under which the notification has been issued reads as follows: "Rate of tolls to be levied.-(1) The Government may from time to time prescribe, annul or alter rates of tolls to be levied upon any road, ferry or bridge (in the State) and may place the collection of such tolls under such management as may appear to it proper, and all persons employed in the management and collection of such tolls shall be liable to the same responsibilities as....
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....ower vested in the State Government under the section. On a plain reading of the notification it is clear that the intention is to levy toll on dry fruits including almonds, walnuts and walnut kernels exported out of the State through certain exit points by road or railways. The power to impose such a levy does not flow from the power vested in section 3 of the Act in purported exercise of which the notification has been issued. 22.. A Constitution Bench of this Court in the case of A.V. Fernandez v. State of Kerala [1957] 8 STC 561(SC) [1957] SCR 837 observed: "It is no doubt true that in construing fiscal statutes and in determining the liability of a subject to tax one must have regard to the strict letter of the law and not merely to the spirit of the statute or the substance of the law. If the Revenue satisfies the court that the case falls strictly within the provisions of the law, the subject can be taxed. If, on the other hand, the case is not covered within the four corners of the provisions of the taxing statute, no tax can be imposed by inference or by analogy or by trying to probe into the intentions of the Legislature and by considering what was the substance of the ....