Unjust to collecting tax if the highway in damaged state: J&K and Ladakh HC orders 80% fee discount on NH-44

Last update:February 27, 2025, 14:04 Ist

“It seems that the general public is made to suffer both on both actions, ie the bad highway because of the construction activities and the heavy tax,” the court noted.

The judgment came in response to a public interest dispute (PSP) submitted by Sugandha Sawhney, looking for the tax with tax at Lakhanpur, Thandi Khui and banning the duty plates until the Delhi-Amritsar-Katra highway is fully operational. (Image: Shutterstock)

The High Court of Jammu and Kașmir and Ladakh directed an 80 % discount in collection of taxes at Plazasul Lakhanpur and Bann Toll on the National Highway-44 (NH-44). The court considered that if a highway is in a damaged and uncomfortable state of driving, it is considered unfair for commuters to continue paying taxes, rather the same is violating the fair service.

The justice of Tashi Rabstan, who presided over the court, observed: “The ships are unjustly accused, because they do not receive the value they pay in terms of quality infrastructure. Once this highway is really in a bad form due to the different nature of the construction activities, the National Authority of Highways in India (NHAI) or the concessionaire who manage the taxation road cannot collect taxes of commuters using the highway. This is based on the principle that taxes are collected to provide users the benefit of well -maintained infrastructure. “

The judgment came in response to a public interest dispute (PSP) submitted by Sugandha Sawhney, looking for the tax with tax at Lakhanpur, Thandi Khui and banning the duty plates until the Delhi-Amritsar-Katra highway is fully operational. The petitioner claimed that 60 % to 70 % of the NH-44 stretch from Pathakot (Punjab) to Udhampur (UT de J & K) was under construction since December 2021, however, the taxes continue to be charged, in the case of national highway taxes (determining rates and collection), 2008. (determining rates and collection), in 2008. Due to diversions and precarious road conditions. It was claimed that the collection of taxes should not start until the completion of the highway, according to the 45 -day completion rule in accordance with rules 3 (1) and 3 (2) of the 2008 tax rules.

The opposite of pleading, the respondents, including the Union of India, the National Authority of Highways in India (NHAI) and the territory of the Union in Jammu and Kașmir, claimed that only the brownfield portions were under construction and that the necessary roads and diversions were provided. Nhai said that the taxes were accused only for four-lane stretches of NH-44, with discounts applied according to the orientations of the Ministry of Road Transport and Highways (Morth). The taxes were already reduced by 25 % for extensions under enlargement and no effect has been charged for the Tarhan bridge damaged over the UJH river and the road of proximity.

The Court, in disagreement with the contents of the respondents regarding the provision of services and diversions, noted that the NH-44 from Pathakot to Udhampur is in a weak state. He mentioned that Nhai acknowledged that the highway was under construction, the traffic being redirected to the service roads and the four -lane highway to a single tape in many places.

The Court said: “The National Highway with four lanes in most places was reduced on a single band, in fact, the fall of dirt was eliminated for vehicles to use the only alternative, as a result of which its daily use is stretched with such damaged conditions to the wear of vehicles.”

Reducing the Government for increasing taxes at Lakhanpur and Bann Toll Plazas the same day, Thandi Khui Toll Plaza was closed, the court mentioned that the commuters were taxed, despite the bad road conditions, which amounts to the unjustified enrichment of the tax contractors.

“Certainly, commuters and drivers must feel frustrated by the weak state of this particular highway they pay to use. The basic premise is that the taxes should be a form of compensation for road users, in exchange for smooth, safe and well -maintained highways, observed the court, stressing that, while taxation fees are essential for the construction, maintaining and improving the high quality road infrastructure, the respondents must ensure a proper fee.

The court also raised concerns about the rapid growth of taxes, warning against their uncontrolled proliferation. “The respondents must ensure that the taxation places are not placed at each Hungarian and corner of the state. There should be no taxation fungi, “he said.

As a result, the court allowed PSU with the following indications:

1. An 80 percent discount on Lakhanpur and Bann Plazas Toll taxes until the Delhi Amritsar-Katra highway is completely operational and the road conditions are improving.
2. Respecting the rule of 60 km for the distance of Toll Plaza and returning the excess tax collected due to violations.
3. The government and Nhai to ensure the collection of taxes are aligned with the principles of the correct services, stressing that the taxes should reflect the quality of the infrastructure offered.