The imposition of toll tax on vehicles in transit passing through the limits of the Municipal Board is illegal as there is no consideration for the imposition of the tax. The general amenities provided by the Municipal Board, such as lighting and cleaning of roads, cannot be considered to be sufficient consideration for the imposition of the toll tax.

( 1 ) THE petitioner M/s. Shervani Sugar Syndicate Limited manufactures crystal sugar at its sugar factory situate at Neoli, district Etah. It has challenged the legality of the imposition and realisation of toll tax (Vahan Kar) by the Municipal Boards of Ujhanai and Budaun on trucks and other vehicles carrying sugarcane transported from sugarcane purchasing centres to the petitioners factory at Neoli, district Etah. The prayer made in these writ petitions is for a writ, order or direction in the nature of mandamus commanding the respondent Municipal Boards to refrain and forbear from realising any toll tax on trucks or any other vehicles carrying sugarcane from sugarcane purchasing centres to the petitioners factory while passing through the limits of the Municipal Boards.

( 2 ) THE case set up by the petitioner is that all sugarcane purchasing centres as well as the sugar factory are situate outside the limits of the Municipal Boards. The vehicles carrying sugarcane from the purchasing centres to the petitioners factory only pass through the limits of the municipal Boards. The Municipal Board, Ujhanai imposed the impugned tax by a notification dated 6-3-1972, which was published in the U. P. Gazette dated 18-3-1972. Amendments in the rules and the rate of tax were made from time to time. The last amendment was made by notification dated 29-11-1976 which came into effect from 1-12-1976 and was in force. The municipal Board, Budaun imposed the impugned tax by a notification dated 31 5-1975.

( 3 ) ACCORDING to the petitioner the trucks carrying sugarcane for the petitioner pass through moradabad--Farru--khabad Road, Budaun-Datagani Road and Bareilly-Mathura Road which are public highways maintained by the Public Works Department of the Government. The Municipal boards of Ujhanai and Budaun do not render any service to the petitioner Or to the vehicles transporting sugarcane from the sugarcane purchasing centres situate outside the limits of the municipal Boards to the petitioners factory which is also situate outside the Municipal limits.

( 4 ) AT the hearing of the petition the legality of the imposition has been challenged on the ground (1) that the Municipal Boards have no authority to impose toll tax on vehicles in transit passing through the limits of the Municipal Board and (2) that the toll tax being compensatory in nature the principle of quid pro quo is attracted and since the Municipal Boards do not render any service the imposition of toll tax is illegal.

( 5 ) THE stand taken by the respondents Municipal Boards was that toll tax on laden vehicles passing through the limits of the Municipal Boards has been validly imposed after following the procedure prescribed under the Act. It has also been asserted that although moradabad-Farruakhabad Road, Budaun-Datagani Road and Bareilly-Mathura Road are public highways constructed by the State and repair work is done by the Public Works Department but the cleaning of the road, the lighting on the road and looking after of the road is done by the municipal Board and in that manner the Board renders services to the petitioner. In the counter affidavit filed on behalf of the Municipal Board, Ujhanai the circumstances in which impugned toll tax was imposed have also been set out but for the disposal of the case it is not necessary to refer to them in detail. The Municipal Board Ujhani took an alternative stand that what was being charged from the petitioner was transit-fee or tax and not toll tax simpliciter but at the time of hearing this stand was not pressed.

( 6 ) SECTION 128 (1) of the U. P. Municipalities Act empowers the Municipal Board to impose certain taxes in the whole or any part of the Municipality subject to any general rules or special orders of the State Government, in this behalf. Under Clause (vii) of Sub-section (1) of Section 128 the Board is authorised to impose a toll on vehicles and other conveyances, animals, and laden coolies entering the m