Jindal Stone Works through Its Proprietor Kanhaiya Kumar Khudania v. the State of Jharkhand through Its Secretary Deptt of Industries Mines and Geology
Case brief
What is this about?
Batch of writ petitions challenged 'Composition User Fee' imposed on mechanical vehicles carrying minerals over 9 tonnes, collected through JIMMS portal at transit challan generation under amended Jharkhand Highways Fee Rules 2021. Court held the levy ultra vires Indian Tolls Act 1851: it lacked quid pro quo compensatory character, altered the taxable event from actual road use to challan issuance
What did the court decide?
Impugned Rules 2021 and amendments struck down; amounts already paid to be adjusted against existing or future liability