TaxTMI 
TaxTMI 
1966 (5) TMI 69
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....l was settled with opposite parties 3 and 4. Mr. Ghosh for the petitioner urged that the levy of tolls in purported exercise of the power conferred by the Indian Tolls Act, 1851 (hereinafter referred to as "the Act") was wholly unconstitutional. He relied on Article 19 and Article 14 and also on Articles 301 and 303 of the Constitution. 2. The Indian Tolls Act, 1851, has been existing on the statute book for more than a century The preamble of the Act makes it clear that it is an Act for enabling Government to levy tolls on public roads and bridges. Section 2 is the most important section, and as its constitutional validity has been challenged I may quote it in full: "2. Power to cause levy of tolls on roads and bridges wit....
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....carrying into effect the purposes of the Act These rules, when made, shall be laid before the Legislature. It is, however, conceded that rules have not yet been made under Section 9, so that for all practical purposes Section 9 has remained ineffective and a dead letter. 3. Mr. Ghosh's contentions are two-fold: (1) Section 2 now stands alone inasmuch as rules have not yet been made under Section 9. Section 2 confers unfettered arbitrary power on the State Government to levy tolls at anv rate which they may think fit It would therefore according to Mr. Ghosh, offend Article 14 and Article 19 (1) (d) of the Constitution and is not saved by Clause (5) of Article 19. (2) Even if Section 2 of the Act be held to be constitutional, the Go....
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....the section does not confer arbitrary or unguided power on the Executive. He urged that the expression "toll" has a well defined meaning in public finance and the rate of toll must ordinarily be sufficient to recoup the actual expenses incurred in maintaining roads and bridges and also in recouping the cost incurred in the construction of the bridge within a reasonable time. According to the Advocate General, this principle is indicated by the words "to be levied upon any road or bridge which has been or shall hereafter be made or repaired al the expense of the Central or any State Government." It was urged that by restricting the right of levy of toll only upon roads and bridges which are made or repaired at the expens....
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....d barely enough to maintain the road in satisfactory condition and in relatively few instances were they sufficient to pay interest on the loan." It was only in 1896 that the last turnpike vanished from the British soil When the Act was passed in 1851 it may be reasonably inferred that the expression "tolls" in the Act was intended to convey the same meaning as was given to the expression in Britain, namely, a levy for the purpose of providing funds for the maintenance of roads and bridges and repayment of the loan (if any) taken for their construction in the Encyclopedia Americana, Volume 26, at page 675, the expression "toll" has been defined as follows: "Toll, the fee exacted by those who erect or maintai....
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....utive to levy any amount by way of toll merely for the purpose of augmenting the general revenues of the State. There are enough indications in the Act for the guidance of the executive power, and if in a particular case it can be shown that the rate of levy is so excessive as to make the levy not a "toll" as understood in public finance, the particular levy may be struck down as being in excess of the statutory power; but merely because there is a possibility of misuse of the statutory power by the Executive. Section 2 of the Act cannot be held to be unconstitutional. The first argument of Mr. Ghosh must, therefore, fail. 8. As regards the second point, Mr. Ghosh has not given us any material for the purpose of holding that the ....
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....oreover in paragraph 12 of that affidavit it is stated as follows: "The State Government has decided to levy the tolls which is compensatory for reimbursing itself to the extent of the cost of construction of this particular bridge without which it may not be possible to undertake construction of such bridges for the general and ultimate public good. The levy of tolls is in the larger interest of travelling public trade and commerce and is compensatory. The amount that will be realised by leasing the tolls has been earmarked for meeting the costs of construction of the said bridge as stated above." The learned Advocate-General also by way of further clarification of this portion of the affidavit, said that, as soon as the entir....