Road Tax and Toll Fee are two different levies and do not amount to Double Taxation: Andhra Pradesh High Court [Read Order]

While dismissing the Writ Petition filed by Advocates, the Andhra Pradesh High Court has held that the collection of tax under the Motor Vehicle Taxation Act and levy of fees under the National Highway Rules do not amount to Double Taxation.

The petitioners are advocates, who filed a Writ Petition stating that they are owners of motor vehicles, they have paid road tax at the time of purchase of the vehicles and the payment of toll tax will be an addition to the lifetime tax paid by them. The petitioners also stated that nonpayment of toll tax by certain dignitaries will amount to violation of Article 14 of the constitution of India.

The Petitioners contented that, the exemption is available only for NHAI or any other government organization using such vehicles for inspection, survey, construction of National Highways and maintenance thereof. Rule 11 of the National Highway Fee (Determination of Rates and Collection) Rules, 2008 exempts certain class of persons from payment of fees and the issue in the matter of grant of exemption has already been adjudicated by Karnataka High Court in the case of Narasimha Vasudeva Mahale v. Executive Engineer, National Highway Division in the above case it was held that, for more than one reasons these vehicles could have been exempted from payment of toll tax. One of them could be the security of the high dignitaries travelling in the cars. The vehicles in which the dignitaries travel which have been exempted from payment of toll tax are a class apart and therefore the classification made is reasonable and the same does not amount to discrimination.

The division bench comprising of Justice Satish Chandra Sharma and Justice N.Tukaramji relying the Judgment delivered by the Madras High Court in the case of State Lorry Owners’ Federation, Tamilnadu v. the Superintending Engineer, wherein it has been held that “the collection of tax under the Motor Vehicles Taxation Act and levy of fees under the National Highway Rules do not amount to double taxation”.

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