MUNICIPAL BOARD, NAINITAL & ANR. vs BRIJ MOHAN CHANDRA &

The Supreme Court held that the toll-tax levied under Section 128(1)(vii) of the U.P. Municipalities Act, 1916, is payable by the person-in-charge of the vehicle and not by the passengers. The Court dismissed the appeal, affirming the High Court's ruling that the levy on passengers was ultra vires the taxing power of the Municipal Board. The Court clarified that there was no legal basis for demanding toll-tax from passengers merely because they were carried by the vehicle entering the municipality.