Gram Panchayats Can't Impose Toll Tax: Madhya Pradesh HC

The Madhya Pradesh High Court has rejected a petition filed by Hargarh gram panchayat against CEO, janpad panchayat, who had asked it to stop imposing toll tax on motor vehicles. The case was heard by a single bench of Justice Vishal Dhagat.

Jabalpur (Madhya Pradesh): The Madhya Pradesh High Court has stated that gram panchayat has no right to impose toll tax on motor vehicles.

The single bench of Justice Vishal Dhagat, issued this verdict while dismissing a petition filed by Hargarh gram panchayat in Sehora tehsil of Madhya Pradesh's Jabalpur district, challenging the directive of the CEO of janpad panchayat, who asked it to stop imposing toll tax on vehicles.

During the hearing, the petitioner argued that the tax has been imposed as per the provision of Schedule-2 under Section 77-A (2) of Madhya Pradesh. The resolution was passed by the Gram Sabha under the Panchayat Raj and Gram Swaraj Act. No illegal toll or any tax was collected by the Panchayat and the CEO, janpad panchayat is not the competent authority to take action against the Gram Sabha's decision, the petitioner had said.

Opposing the petition, the state government argued that no resolution was passed in the gram panchayat to authorise the sarpanch of the panchayat. Also, the proposal does not have the names and signatures of the panchs, it argued.

After hearing both the sides, the single bench said that as per Schedule-2 under Section 77 Subsection (2), tax can be imposed only on vehicles other than motor vehicles. The Section 2 of the Motor Vehicles Act, 1988 includes all vehicles which are mechanically operated or run for use on roads, court said.

The Panchayat Raj and Gram Swaraj Act, 1993 has given the right to impose optional tax on vehicles other than motor vehicles entering the Gram Panchayat area, the court mentioned.

Read more