Primary Legislation

• The toll tax system in India is legally governed by the National Highways Act, 1956.
  
• It empowers the central government to levy and collect toll on national highways.
  
• The Act provides authority to fix user fees for road usage.
  
• It outlines responsibilities for toll collection and enforcement.
  
• It applies to both government-managed and concessionaire-operated highways.
  

Supporting Legal Rules

• The National Highways Fee (Determination of Rates and Collection) Rules, 2008 regulates toll rate policies.
  
• These rules define the method for calculating toll charges.
  
• They include provisions for classification of vehicles and toll plaza management.
  
• The rules set guidelines for rate revision and exemption categories.
  
• Penalty clauses for violations and evasion are also covered.
  

Authority of Central and State Governments

• The central government controls toll taxation on national highways.
  
• State governments have legal authority over tolls on state roads and expressways.
  
• State-specific acts and policies regulate tolling on regional roads.
  
• Local bodies may enforce tolls under urban infrastructure development schemes.
  
• Dual governance ensures coverage of national and regional transport routes.
  

Role of NHAI and Other Agencies

• NHAI is the implementing agency under the National Highways Act.
  
• It supervises toll agreements, toll plaza setup, and rate enforcement.
  
• NHAI partners with private players under public-private models.
  
• It ensures legal compliance through audits and performance checks.
  
• Dispute resolution and compliance mechanisms are outlined in legal contracts.
  

Judicial Oversight and Constitutional Validity

• Toll taxation is recognized as a valid form of user charge under Indian law.
  
• Courts have upheld toll tax as a legitimate method to recover infrastructure costs.
  
• Legal challenges are evaluated on grounds of fairness and transparency.
  
• Toll policies must align with constitutional principles of equality and public interest.
  
• Legal recourse is available for violations or misuse of toll collection rights.