Supreme Court Clarifies Union’s Exclusive Power to Levy Toll on National Highways

The Supreme Court dismissed a special leave petition challenging the Union’s authority to collect toll tax on national highways.

The Court held that such charges are fees traceable to Entry 23 and Entry 96 of the Union List.

The Bench clarified that "tolls" fall under Entry 59 of the State List are confined to charges on roads other than national highways. The Bench affirmed the Madras High Court’s ruling, stating that once a road is declared a national highway, legislative competence shifts to Parliament. 

Consequently, Rule 8 of the National Highways Fee Rules, 2008, remains constitutionally valid.

[T S R Venkatramana v. UOI & Ors.]