1935 (8) TMI 20 - HC - Indian Laws

Summary

Issues:
1. Conviction under Section 299, Municipalities Act for failure to pay toll tax.
2. Interpretation of Rule 2 regarding imposition of terminal toll.
3. Whether toll is leviable when goods are in transit.
4. Definition of "import" and "bring" in the context of toll tax.
5. Interpretation of rule in favor of the subject.

Analysis:
1. The applicants were convicted under Section 299 of the Municipalities Act for not paying toll tax while transporting goods. The conviction was upheld in revision by the Sessions Judge. The contention was that the conviction was illegal as the applicants did not pay the toll tax while passing through Saharanpur Municipality on their way to another destination.

2. Rule 2 of the Act directed that breach of it would be punishable with a fine. The rule specified that no person should bring loaded vehicles within the toll limits without paying the toll tax. Amendments were made over the years, changing the description of taxable items. The court analyzed the evolution of the rule and its application to the case at hand.

3. The argument presented was that toll tax is leviable only when goods remain within the toll limits for some time, not when they are in transit. The court agreed with this contention, emphasizing the need for the goods to be brought within or imported through the toll limits for the tax to be applicable.

4. The court delved into the definitions of "import" and "bring" to determine if the toll tax was applicable in this case. It noted that both terms imply a sense of pause or rest, which was lacking in the situation where the carts merely passed through the municipality without stopping.

5. In interpreting the rule, the court favored a liberal interpretation in favor of the subject. It opined that the intention of the rule was not to levy toll tax in cases like the present one where goods were in transit. The court emphasized the need for clarity in rules imposing taxes and ruled in favor of the applicants, setting aside the conviction and directing the refund of fines if paid.