2025:JHHC:30132-DB 1 IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C) No.4922 of 2025 M/s. Man Mohan Grover, Partnership Firm having its corporate office at Hatia Road, Baliapur, P.O. & P.S. Baliapur, District Dhanbad, PIN-828201 (Jharkhand) through its partner namely, Man Mohan Grover aged about 76 years, son of Late Prakash Lal Grover, resident of village Baliapur, P.O. & P.S. Baliapur, District Dhanbad, PIN-828201 (Jharkhand). … Petitioner Versus 1. The State of Jharkhand, through its Secretary, Department of Industries, Mines and Geology, having its office at Yojna Bhawan, P.O. and P.S. Doranda, District Ranchi (Jharkhand), PIN 834 002. 2. The Secretary, Road Construction Department, Government of Jharkhand, having its office at Jharkhand Mantralaya (Project Building), PO. Dhurwa, P.S. Jagannathpur, District Ranchi (Jharkhand), PIN- 834 004. 3. The Director, Mines Directorate, Department of Mines and Geology, Government of Jharkhand, having its office at Yojna Bhawan, P.O. and P.S. Doranda, District Ranchi (Jharkhand), PIN- 834 002. 4. Deputy Commissioner, Dhanbad, having its office at Collectorate Building, Dhanbad, P.O. & P.S. Dhanbad, District Dhanbad, PIN- 828201. 5. District Mining Officer, Dhanbad, having its office at Collectorate Building, Dhanbad, P.O. & P.S. Dhanbad, District Dhanbad, PIN-828201. … Respondents ---------- Coram:HON’BLE MR. JUSTICE SUJIT NARAYAN PRASAD HON’BLE MR. JUSTICE ARUN KUMAR RAI ------- For the Petitioner : Mr. Sumeet Gadodia, Advocate Mr. Ranjeet Kushwaha, Advocate Ms. Shruti Shekhar, Advocate Mr. Nilohit Choubey, Advocate For the State : Mr. Shray Mishra, AC to AG ----- 2025:JHHC:30132-DB 2 Order No.04/Dated: 25.09.2025 1. In the instant writ petition, the petitioner prays for the following reliefs:- (i) For issuance of an appropriate writ/order/direction, including Writ of Declaration, declaring that action of Respondent-State of Jharkhand in levying/collecting 'Toll Tax' in the form of 'Composition User Fee' through the medium of 'Jharkhand Integrated Mines and Minerals Management System Portal' (hereinafter referred to as 'JIMMS Portal' for short) at the time of generation of Transport Challan for transportation and otherwise removal of minerals, is contrary to the provisions of the Jharkhand Highways Fee (Determination of Rates and Collection) Amendment Rules 2021 (hereinafter referred to as 'Rules of 2021' for short), especially in view of the fact that neither any notification under Rule 3(2) of the Rules of 2021 has been issued notifying the date of collection of Composition User Fee on completion of sections of State Road, nor any scheme under Rule 3A has been issued enabling levy of 'Composition User Fee'. (ii) For issuance of further appropriate writ/order/direction, including Writ of Declaration, declaring that action of Respondent-Department of 2025:JHHC:30132-DB 3 Mines and Geology prescribing in JIMMS Portal the mechanism for levy of Composition User Fee on each and every transaction of generation of Mining Challan/Transport Challan, is wholly contrary to the scheme of the Rules of 2021 and is further wholly arbitrary and unreasonable being violative of Articles 14 and 19(1)(g) of the Constitution of India, (iii) For issuance of further appropriate writ/order/direction for quashing/setting aside Letter No. 2089 dated 28.12.2021 (Annexure-2) issued by Respondent No.3, wherein mechanism has been developed for realization of 'Toll Tax' in the form of 'Composition User Fee' from the mining lessees/dealers/transporters and vehicle owners de- hors the provisions contained under the Rules of 2021. 2. The brief facts of the case, as per the pleading made in the writ petition, requires to be enumerated, which read as under: (i) The petitioner is engaged in the business of mining and minor mineral in the district of Dhanbad and is having a subsisting mining lease dated 17.08.2021 situated at Mauza, Salpatra. (ii) The petitioner, in respect of the aforesaid Mining Lease, has separately registered in JIMMS Portal 2025:JHHC:30132-DB 4 administered under the provisions of The Jharkhand Minerals (Prevention of Illegal Mining, Transportation and Storage), Rules, 2017' and has been allotted JIMMS ID No. as 0204212001. (iii) State of Jharkhand in exercise of the power conferred under Section 23-C(1) and Section 23-C(2) of the 'Mines and Minerals (Development and Regulation) Act, 1957', framed "The Jharkhand Minerals (Prevention of Illegal Mining, Transportation and Storage) Rules, 2017 inter alia, that no transportation or otherwise removal of any mineral from any place would be undertaken without obtaining a Transport Challan duly generated through JIMMS Portal, which has been recognized under Rule 2(k) of the Jharkhand Minerals Rules, 2017. (iv) Thereafter, Department of Industries, Mines and Geology who is administering JIMMS Portal from where Transportation Challans are being generated in order to generate Transport Challan, the vehicles which would be carrying minerals, is mandatorily required to be registered under the JIMMS Portal. (v) The petitioner is having several vehicles, which petitioner uses for carrying out the activity of transportation of minerals, and, thus, the petitioner 2025:JHHC:30132-DB 5 has got its aforesaid vehicles duly registered in JIMMS Portal. (vi) Further, State of Jharkhand, through the Department of Mines, with effect from 1 February, 2022, has imposed additional condition at the stage of generation of Transport Challan and has compulsorily provided for levy of ‘Toll Tax’ in the form of 'Composition User Fee' which is to be paid by vehicle owners at the time of generation of Transport Challan. (vii) Thereafter, Department of Mines pursuant to above enactment of Rules of 2021, notified the said enactment vide Notification dated 16th September, 2021 and the said mechanism implemented in JIMMS Portal vide Letter No. 2089 dated 28.12.2021 issued by the Director of Mines. (viii) The State of Jharkhand, in exercise of power conferred under Section 2 of the Indian Toll (Jharkhand Amendment) Act 2002 framed 'The Jharkhand Highways Fee (Determination of Rates and Collection) Rules, 2011'. The said Rules provided for levy and collection of Toll for use of any State Highways, etc. from the date of completion of Section of the said Highways, etc. 2025:JHHC:30132-DB 6 (ix) In the aforesaid background, even under the Indian Toll Act, 1851 read with the Highways Fee Rules, 2011, levy and collection of Toll Tax was provided only from the date of completion of the State Highways, etc. specially because without completion of Highways, etc., no corresponding benefit would have accrued to the people at large from whom Toll was collected and the same would have fallen foul for the purpose of which Toll was to be collected. (x) The aforesaid Highways Fee Rules of 2011 has been amended by virtue of the Rules of 2021 and from a careful reading of the said Rules would reveal that the amendment in the said Rules has been incorporated primarily for the purpose of levying additional Toll Tax described as ‘Composition User Fee', which is to be levied in addition to User Fee i.e. Toll to be collected by the State Government in respect of sections of State Road. (xi) Subsequent Notification of amendment under sub- rule (4) of Rule 3A of the Rules of 2021 has been made and Composition User Fee shall not be levied on commercial vehicles carrying materials less than 9 (nine) tons. (xii) After promulgation of Rules of 2021, the Department of Mines carried out amendment in JIMMS Portal, 2025:JHHC:30132-DB 7 and, at the time of generation of Transport Challan, ‘Composition User Fee’ @ Rs. 600/- each way i.e. total amount of Rs. 1200/- is levied when a Transport Challan is generated. (xiii) Notification dated 16th June, 2022 published in Extraordinary Gazette on 20th June, 2022 the provisions of Rule 3A has been substituted and in Rule 3A(1) the words ‘in addition to the amount of Composition User Fee' have been substituted with the words 'in lieu of user fee payable under Sub-Rule (1) of Rule 3. (xiv) Thereafter, Director, Mines had issued a letter dated 28.12.2021 directing to ensure collection of Composition User Fee from minerals bearing vehicles at the time of generation of Transport Challan and said letter reflected in the JIMMS Portal, thereby informing all stakeholders that it has become mandatory for stakeholders to make payment of Composition User Fee on vehicles being used for transportation of minerals. Being aggrieved, the petitioner approached this Court and hence, the present writ petition. 3. Mr. Sumeet Gadodia, learned counsel appearing for the petitioner has submitted that identical issue has been decided by the Co-ordinate Bench of this Court in W.P.(C) 2025:JHHC:30132-DB 8 No. 1532 of 2022 alongwith the analogous cases decided on 24.09.2025. 4. Learned counsel appearing for the State has submitted that these cases may be disposed of in terms of the judgment passed by the Co-ordinate Bench of this Court in W.P.(C) No. 1532 of 2022 alongwith the analogous cases on 24.09.2025. 5. Considering the aforesaid submission, this writ petition stands disposed in terms of the judgment passed by the Co- ordinate Bench of this Court in W.P.(C) No. 1532 of 2022 alongwith the analogous cases, holding therein that “the Rules, 2021 and the subsequent amendments made thereto with respect to levy of toll in the nature of “Composition User Fee” on transportation of minerals through mechanical vehicles for using the state roads or commuting in mining areas, is beyond the scope of the provisions of section 2 of the Act, 1851 and, as such, the same is struck down. Since the petitioners have succeeded on the main issue itself, there is no need to delve into the other issues raised in the present batch of writ petitions and the same are left open to be decided in any other suitable case. So far as the claim for refund of the payment of “Composition User Fee” already made by the petitioners is concerned, since they are either the dealers or are engaged in construction work and regularly dealing with the minor minerals, the respondents 2025:JHHC:30132-DB 9 are directed to adjust the amount, if any, paid by them towards their existing or future liability.” (Sujit Narayan Prasad, J.) (Arun Kumar Rai, J.) Dated: 25th September, 2025 Rajnish/R.K./AFR