TMI Blog2023 (8) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - W.P.No. 28255 of 2022 And W.M.P.Nos. 27550, 27551 And 27554 of 2022 - - - Dated:- 5-1-2023 - Honourable Mr. Justice N. Sathish Kumar For the Petitioner : Mr.D.Baskar For the Respondent 1 : Mr.P.Srinivas For the Respondent 2 : No appearance ORDER This writ petition has been filed challenging proceedings of the first respondent in Na.Ka.No.165/2015/A1, dated 20.09.2022 including the Notification in Na.Ka.No.165/2015/A1 dated 14.07.2022 in relation to awarding the tender/auction for toll collection for lorry entry at Central Warehouse, Chitlapakkam, Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eet, Chitlapakkam 2nd main road, Hasthinapuram main road have to be frequently repaired and rebuilt. 7. Further according to the first respondent the frequency at which the particular roads have to be relaid and repaired is more than 10 times compared to other streets in the locality. In the last repair works, a sum of Rs. 15 lakhs has been allocated for the Nehru Street and Rs. 14 lakhs for the Hasthinapuram Main Road alone. The only reason for the heavy traffic on these streets is the presence of the petitioner's premises and the operations of the businesses in the same. Therefore, the present levy has no effect on the petitioner and only the vehicle users are aggrieved by the same and as such there is no discrimination with regard to the levy of toll. Only due to the fact that extraordinary traffic is caused due to the operations of the petitioner's premises, the levy which is a compensatory levy is being done by the first respondent. Therefore, there is no illegality in the same and hence oppose the writ petition. 8. The learned counsel appearing for the petitioner mainly contended that a perusal of the agenda for the Council meeting it can be clearly seen tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies entering into the petitioner's premises is nothing but a clear discrimination. 13. Though it is stated by the learned counsel appearing for the first respondent that the petitioner not being an aggrieved party cannot maintain the writ petition. It is to be noted that the petitioner is a Central Warehousing Corporation, a Government of India Undertaking. Several trucks and other vehicles will naturally enter into the petitioner's premises. If the restriction is put only to the lorries entering into the petitioner's premises, it will in fact discourage the traders to stock their goods in the petitioner's warehouse due to the toll collection. Therefore, this Court is of the view that the petitioner is certainly an aggrieved person and can maintain the writ petition. 14. Though, it is stated in the counter that levy of toll is compensatory in nature and only for the purpose of repairing the roads the tender has been invited. In the counter itself it is stated that they have spent around 29 lakhs for repairing two roads viz., Nehru Street and Hasthinapuram main road alone. Therefore, the levy is a compensatory levy only for compensating the above aspects an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evy has been fixed in view of the power conferred under Section 249 of the Coimbatore City Municipal Corporation Act which also applies to the respondent Corporation. The said Section 249 reads as follows: Section 249. Power of the Corporation to recover expenses caused by extraordinary traffic When by a certificate of an Officer of the Public Works department of the Government of a rank not below that of an Executive Engineer it appears to the Commissioner that having regard to the average expense of repairing roads in the neighbourhood, extraordinary expenses have been incurred by the Corporation in repairing a street by reason of the damage caused by excessive weight passing along the street or extraordinary traffic thereon, or by any process of loading, unloading or depositing excessive weights thereon the Commissioner may recover in the civil Court, from any person by or in consequence of whose order such damage has been caused, the amount of such expenses as may be proved to the satisfaction of such Court to have been incurred by the Corporation by reason of the damage arising from such weight or traffic as aforesaid: Provided that any person from whom expenses ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is extracted below: 'The State did not attempt in the High Court to sustain the validity of the impugned tax law on the submission that it was compensatory in character. No attempt was made to establish that the dealers in Scheduled goods in a local area would be availing of municipal services and municipal services can be efficiently rendered if the municipality charged with a duty to render services has enough and adequate funds and that the impugned tax was a measure for compensating the municipalities for the loss of revenue or for augmenting its finances. As such a stand was not taken, it is not necessary for us to examine whether the tax is compensatory in character'. 21. Considering the above judgments, 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. 22. Such view of the matter, the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
