[Per: Hon’ble Tarun Agarwala, J.]

1. This case has come up before us upon a reference made by a Division Bench, which felt that the decision of another Division Bench on the point in question requires reconsideration and accordingly framed a question for its decision, namely,

“whether after the power to levy toll on motor vehicles by the Municipalities was expressly withdrawn, on the strength of Notification issued by the Cantonment Board prior to withdrawal of such power, the Cantonment Board can continue to collect toll on motor vehicles.”

2. The brief facts is, that the Municipalities were imposing tax on entry of vehicles under Section 128 of the U.P. Municipalities Act, 1916. With effect from 01st August, 1991, the levy of toll tax on entry of vehicles in the municipal area was abolished and, since then, no tax on entry of vehicles is being levied in a municipal area.

3. However, the Cantonment Board, Dehradun continued to levy tax on entry of vehicles in its cantonment area. The collection of such tax was challenged in Arun Kumar Jaiswal Vs. Cantonment Board, Dehradun & another 2004 (2) U.D. 401, which was dismissed by a judgment dated 01.09.2004 passed by a Division