DARSHAN LAL MEHRA Vs. UNION OF INDIA

JUDGEMENT

(1.) The imposition of "theatre tax" by the Nagar Mahapalika, Lucknow has been challenged by the cinema owners/lessees in these petitions under Art. 32 of the Constitution of India.

(2.) Sections 172 and 2(77) of the U.P. Nagar Mahapalika Adhiniyam, 1959 (the Act) are reproduced hereunder:-

(3.) Sub-section (1) of S. 199 of the Act requires the Nagar Mahapalika to make a preliminary proposal specifying the tax which it desires to impose under S. 172(2) of the Act, the persons or class of persons to be made liable, the amount or rate leviable for each such person or class of persons and any other information which the Government requires. It further requires the executive committee of the Nagar Mahapalika to draft the rules in that respect which are finally to be framed by the State Government. The draft rules are published in the prescribed manner to enable the affected public to file objections. S. 200 of the Act makes it obligatory for the Nagar Mahapalika to consider the objections so received and to re-publish the draft rules in case any change is made therein as a result of such consideration. After considering all the objections the draft rules are finalised by the Nagar Mahapalika and are forwarded to the State Government along with the objections. S. 201 of the Act empowers the State Government to reject, modify or to accept the proposed rules. Under S. 202 of the Act it is only after the rules are finalised by the State Government that the Nagar Mahapalika can pass a special resolution imposing the tax from the date to be specified. Under S. 203 the special resolution is sent to the Government and the tax is imposed on the publication of the resolution in the Government Gazette. S. 540(4) of the Act provides that all rules made under the Act shall be laid for not less than 14 days before each House of the State Legislature as soon as they are made and shall be subject to such modifications as the Legislature may make during the session they are so laid.