2025:JHHC:30133-DB 1 IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C) No.4928 of 2025 Shivalaya Construction Company Private Limited, (a Company registered under the Companies Act, 1956/2013); having its Registered office at Plot No. 137, Avatar Enclave, Pashcim Vihar, P.O & P.S- Jwala Heri Pashcim Vihar, New Delhi, PIN-110063, through its Authorized Signatory, namely, Dheeraj Kumar, aged about 37 years, son of Rajeshwar Prasad Singh, resident of Sector- 2, Near Rajendra Bhawan, Dhurwa, P.O Dhurwa, P.S Jagarnathpur, District Ranchi, PIN-834004. … 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, Palamu, having its office at Collectorate Building, Palamu, P.O. & P.S. Palamu, District Palamu, PIN- 828102. 5. District Mining Officer, Palamu, having its office at Collectorate Building, Palamu, P.O. & P.S. Palamu, District Palamu, PIN- 828102. … 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:30133-DB 2 ----- Order No.04/Dated: 25.09.2025 1. In the instant writ application, 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, 2025:JHHC:30133-DB 3 declaring that action of Respondent-Department of 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 lessess/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) Petitioner is a company registered under Companies Act, 1956/2013 and its directors are citizens of India and are, thus, entitled to protection of their Constitutional and/or Statutory Rights as enshrined under the Constitution of India. 2025:JHHC:30133-DB 4 (ii) Petitioner, for the purpose of storage of minerals, has also obtained Procurement for Domestic Sale of Auction Minerals in the District of Palamu at Mouza Marwa and Dinadag P.S & P.O Pipra, bearing JIMMS ID-0411236081001. The petitioner also owes several vehicles which are separately registered in JIMMS Portal. (iii) Petitioner, in respect of the aforesaid Unit, is separately registered in JIMMS Portal administered under the provisions of ‘The Jharkhand Minerals (Prevention of Illegal Mining, Transportation and Storage), Rules, 2017’. (iv) At this stage, it is stated that Petitioner is regularly carrying out his business of mining i.e. excavating minerals including its consequent transportation strictly in terms of the provisions of Jharkhand Minerals Rules, 2017 and there is no dispute in respect of the same. However, at this stage, it is most humbly stated and submitted that Respondent-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 2025:JHHC:30133-DB 5 of generation of Transport Challan. Said Toll Tax' in the form of 'Composition User Fee' is levied on 'To and Fro basis @ Rs. 600/- for each way and, thus, total Toll Tax levied is 1200/- at the time of generation of each Transport Challan. (v) The aforesaid exercise has been carried out by Respondent-Department of Mines pursuant to enactment of Rules of 2021 which has been notified vide Notification dated 16th September, 2021. The said mechanism has been implemented in JIMMS Portal, which would be evident from Letter No. 2089 dated 28.12.2021 issued by Respondent No.3- Director of Mines. (vi) At this stage, it is most humbly stated and submitted that Petitioner is having his Crusher Units and in view of the provisions incorporated in the JIMMS Portal, Petitioner are being charged twice Composition User Fee @Rs. 1200/-. In this context, it is stated that Petitioner for the purpose of transportation of stone boulders from his Mines to its Crusher Units, generate Transport Challan and at that stage Composition User Fee is levied, and, further, when the Petitioner transport the crushed minerals for onward sale, then, at that stage also, Composition User Fee is levied. 2025:JHHC:30133-DB 6 (vii) However, recently, on 24.06.2025, Director, Mines has issued a letter directing JIMMS Portal to ensure collection of Composition User Fee from minerals bearing vehicles at the time of generation of Transport Challan. Said letter is reflected in the JIMMS Portal, which is a Notification 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. (viii) Immediately after issuance of aforesaid letter, in the Online JIMMS Portal, at the time of generation of Transport Challan/Mining Challan for transportation of minerals, requirement is being reflected for deposit of Composition User Fee of Rs. 1200/- per trip and without payment of Rs. 1200/- per trip, Transportation Challan is not being generated. (ix) At this stage, it is pertinent to mention here that Respondent- Road Construction Department vide Notification dated 13th May, 2025 has amended sub 3 of Rule 3A by framing Jharkhand Highways Fees (Determination of Rates and Collection) Amendment, Rules, 2025 prescribing thrice penalty of composition user fee in case of non-payment of composition user fee. 2025:JHHC:30133-DB 7 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) 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 2025:JHHC:30133-DB 8 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 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