Judgment

JUDGMENT :- The short question that arises in these appeals by special leave is as to the validity of the imposition of a toll tax by the Municipal Board, Pilkhwa on vehicles and other conveyances, animals and laden coolies entering the municipal limits under S. 128(1)(vii) of the U.P. Municipalities Act, 1916. The High Court has upheld the levy of the toll tax relying upon the decision of this Court in Automobile Transport (Rajasthan) Ltd. v. State of Rajasthan (1963) 1 SCR 491 : (AIR 1962 SC 1406) as being compensatory in nature. In Automobile Transports case, the majority held that regulatory measures imposing compensatory taxes for the use of trading facilities do not hamper trade, commerce or intercourse, but rather facilitate them and therefore are not hit by the freedom of trade and commerce guaranteed by Art. 301 of the Constitution. The toll tax in question however cannot be treated to be a compensatory tax for the use of trading facilities. The Municipal Board provides no facilities whatever to the owners of vehicles like stage carriages making use of National Highway No. 24. The township of Pilkhwa is off the National Highway and is quite at some distance. It is