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2023 (8) TMI 110 - HC - VAT and Sales TaxAward of tender/auction for toll collection for lorry entry - forbearing the respondents from collecting any fee/toll charges for the lorries - It is the contention of the petitioner that the first respondent has no right to collect toll from the vehicles entering into the petitioner's premises - HELD THAT:- On perusal of the Section 249 of the Coimbatore City Municipal Corporation Act, this Court is of the view that the above Section gives right to recover the expenses caused by extraordinary traffic in the Civil Court by proving the same. Except that, it does not permit to levy tax. Admittedly, there is no material whatsoever available on record so as to substantiate the submission of the first respondent to show that only because of the lorries entering into the petitioner's warehouse the roads suffered damages and to meet out that expenses recovery has to be made. In JINDAL STAINLESS LTD. AND ANOTHER VERSUS STATE OF HARYANA AND OTHERS [2006 (4) TMI 120 - SUPREME COURT] the Hon'ble Apex Court has held that the compensatory tax is a charge for offering trade facilities and they are based on the principle of equivalence. Thus, as in the auction notice the amount has been fixed as Rs. 30,000/- and the same would not commensurate to the expected expenses as alleged in the counter. Such view of the matter, this Court is of the view that the action of the first respondent Corporation to collect toll only from the lorries entering the petitioner's premises is nothing but discriminatory and cannot be said to be compensatory in nature. The writ petition is allowed.
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