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2002 (4) TMI 947

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..... has not been struck down as in the view of the High Court it is open to the State Government to support the levy of transit fee by rendering service as quid pro quo. This aspect alone is under challenge in these High Court by the State Government aggrieved by the conclusion of the High Court that the levy of transit fee is invalid. 4. The Rules have been framed in exercise of the powers under Sections 41, 42, 51 and 76 of the Indian Forest Act, 1927. Rule 3 provides for regulation of transit of forest produce by means of passes. It places restrictions on movement of forest produce without transit pass into or from or within the State of U.P. The imposition of fee is provided in Rule 5. Rule 14 provides for affixing of transit marks to t .....

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..... with the two copies of the pass (duplicate and triplicate) shall be produced for examination under Sub-rule (4) of Rule 6 and for payment of transit fee on the forest produce calculated at the following rates; corresponding receipt shall be granted in the form given in Schedule C- (i) per lorry of timber or other forest produce of capacity ₹ 5.00 per tonne (ii) per cart load of timber or other forest produce 2.50 (iii) per camel load of timber or other forest produce 1.25 (iv) per pony load of timber or other forest produce 0.50 (v) per head of timber or the forest produce 0.25 Note--In respect of resin and resin products, the provisions of the Uttar Pradesh Resin and Other Forest Produce (Regulation of Trade) A .....

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..... roduce may be imported, exported or moved into, from or within the State; (b) prohibit the import or export or moving of such timber or other produce without a pass from an officer duly authorized to issue the same or otherwise than in accordance with the conditions of such pass; (c) provide for the issue, production and return of such passes and for the payment of fees therefor; (d) provide for the stoppage, reporting, examination and marking of timber or other forest-produce in transit, in respect of which there is reason to believe that any money is payable to the Government on account of the price thereof, or on account of any duty, fee, royalty or charge due thereon, or, to which it is desirable for the purposes of this Act to .....

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..... 3) The State Government may direct that any rule made under this section shall not apply to any specified class of timber or other forestproduce or to any specified local area. 6. While dealing with the question of the constitutional competence of the State Government to impose transit fee the High Court, in the judgment under appeal, held that Entry 17A of List III of the Seventh Schedule of the Constitution of India would include the power to regulate transit of forest produce and the regulatory measure could include the power to regulate market fee. The High Court concluded that the power to regulate the transit of timber under the Act and the Rules and for that purpose to levy fee, therefore, is not confined to the transit of timber .....

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..... s 41 and 76 of the Act vest total control over the forest produce in the State Government and empower it to regulate the transit of all timber or other forest produce for which purpose the State Government is also empowered to make the Rules. The decision of the High Court invalidating the levy of application fee in the said case on the ground that the State had not established that the services were rendered in lieu of the said fee, was reversed by this Court holding that the fee was regulatory and not compensatory. Reference may be made to the decision in the case of Corporation of Calcutta and Anr. v. Liberty Cinema wherein it was held that the expression licence fee does not necessarily mean a fee in lieu of services and in case of regu .....

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