ANANDA TRANSPORT COMPANY Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) this writ petition calls in question the validity of the imposition and recovery of toll on motor vehicles registered under the Motor Vehicles Act, 1939, passing through the limits of the town municipal council, annageri and for a mandamus directing the said municipal council to remove the road barries put up by it on the national highway between hubli to sholapur via gadag. The facts in brief may be stated thus.

(2.) the petitioner is engaged in transport business and owns several lorries which are all registered under the Provisions of the Motor Vehicles Act. Taxes in respect of the said lorries are being paid by the petitioner under the Karnataka Motor Vehicles Taxation Act, 1957. These vehicles are being used by the petitioner for transport of goods throughout the State of Karnataka and even beyond. The 2nd respondent, town municipal council, annageri is constituted under the Karnataka Municipalities Act, 1964 and comprises the annageri town and areas in the immediate vicinity thereof. Vehicles owned by the petitioner and engaged in transporting granites, stones and other goods travel on the highway between hubli and sholapur, which in part runs through the limits of the 2nd respondent, municipality. The municipality, it appears proposed the levy of toll tax under Section 94(l)(b)(iii) of the Karnataka Municipalities Act, 1964 on vehicles entering its municipal limits. The levy which was according to the respondent-council meant to augment its resources for carrying out developmental and other works was on the recommendations of the deputy commissioner, dharwad, sanctioned by the government vide order No. Hma 23 tor 76, Bangalore, dated 9th february, 1976. Consequently, the tax in question was levied and toll naka gates set-up within the municipal limits on the highway for recovery of the tax for the vehicles entering into the said limits. Recoveries were accordingly started, aggrieved whereof the petitioner has come up with the present writ petition, as already stated earlier.

(3.) learned counsel appearing for the petitioner argued that the levy in question was patently illegal and in total violation of Section 19 of the Karnataka Motor Vehicles Taxation Act, 1957 according to which, no local authority is empowered to levy any tax or toll on any motor vehicle registered in the State of Karnataka or in any other state or union territory in india. The vehicles owned by the petitioner, it was argued, were all registered under the motor vehicles act in the state of Karnataka and were therefore immune from the payment of any tax whether by way of toll or otherwise under Section 19 (supra). Reliance was also placed upon Section 94 of the Karnataka Municipalities Act, 1964, in support of the submission that Section 94(l)(b)(iii) read with schedule iii to the said Act, permitted levy of a toll only on vehicles other than those exempted from the municipal toll under Karnataka Motor Vehicles Taxation Act, 1957. A levy purporting to be under Section 94, could not according to the learned counsel, extend to creating any tax liability in respect of vehicles that were otherwise exempt under the taxation Act, mentioned above.