RADHAKISAN RATHI Vs. ADDITIONAL COLLECTOR DURG

JUDGEMENT

(1.) Leave granted in Special Leave Petition (C) No.7533 of 1980.

(2.) All these civil appeals raise a common question for our consideration. The appellants contend that their cinema theatres are situated within the local limits of various Municipalities and Corporations constituted under the Madhya Pradesh Municipalities Act, 1961 (hereinafter referred to as 'Municipalities Act') and the Madhya Pradesh Municipalities Corporations Act, 1956 (hereinafter referred to as 'Corporations Act') respectively. On these cinema theatres these municipalities have imposed cinema taxes. Still they are made liable to pay theatres tax as imposed by the concerned Janapada Panchayats within whose territoriwal limits these theatres are situated. These Panchayats are functioning under the provisions of the Madhya Pradesh Panchayats Act,1962 ('Panchayats Act' for short). The appellants in Civil Appeals No. 597/75 and 598/75 have their cinema theatres situated at Rajnandgaon town of Durg District. Appellants in Special Leave Petition No.7553/80 have their cinema theatres situated in Raipur town of Raipur District. Appellants in Civil Appeal No.665/81 and 667/81 have got their cinema theatres situated in Indore town. Appellant inCivil Appeal No. 666/81 has its cinema theatre located in Ujjain town, while appellants in Civil Appeal No.668/81 have their cinema theatres in Bhopal town. It is not in dispute that apart from being situated in the concerned towns of Madhya Pradesh governed by the relevant provisions of the Municipalities Act or the Corporations Act, as the case may be, these theatres are also situated within the territorial limits of Janapada Panchayats functioning under the Panchayats Act. Appellants contend that once cinema taxes are imposed on cinema theatres by concerned local authorities they cannot be taxed by Janapada Panchayats by way of theatre tax. This contention was highlighted before the High Court in writ petitions filed by these writ petitioners. This common contention was rejected by the Division Bench of the High Court which took the view that Janapada Panchayats were competent to levy theatre tax on the concerned theatres owned by the appellants. That has brought the appellants in appeal before this Court after getting leave to appeal under Article 136 of the Constitution of India.

(3.) We have heard the learned counsel for the respective parties. In our view the grievance made by the appellants is not well founded. The Municipalities Act provides for municipal taxation as laid down in Chapter VII of the Act. As per Section 127 (xx) a theatre or show tax can be imposed by the concerned Municipal Council. Similar such taxing power is available to Municipal Corporations of Bhopal and Indore. The appellants do not contest this position. On the contrary they submitted that because they are paying theatre or show tax to the concerned municipal authorities the Janapada Panchayat cannot impose theatre tax on the very same theatres under the Panchayats Act. This contention has to be examined in the light of the provisions of the Panchayats Act. The preamble of the Panchayats Act shows that it is an act to consolidate and amend the law relating to constitution and organisation of Panchayats as units of Local Government in rural areas in Madhya Pradesh. Sub-section(2) of Section 1 lays down that it extends to the whole of Madhya Pradesh. Section 2 is a dictionary section. Sub-section (iii) of Section 2 thereof defines 'Block' to mean such area in a district as the State Government may, by notification, declare to be a block under Section 103. Gram Panchayat is defined by Clause (x) to mean 'Gram Panchayat' established under Section 10. Clause (ix) defines 'Gram Sabha' as one established under Section 3. Clause (xii) defines 'Gram Sabha Area' to mean the area comprised within the village or villages for which a gram sabha is established. Clause (xiv) defines 'Municipal Law' to mean a law for the time being in force for the organisation and administration of municipalities, town areas, notified areas or municipal corporations in the State. Clause (xxii) defines 'Panchayat' which includes a Gram Panchayat, a Janapada Panchayat and a Zilla Panchayat. Clause (xxxii) defines 'Tax' which includes a tax, toll, cess, rate fee or other impost leviable under this Act, but does not include a fine. Chapter II of the Act deals with Gram Sabhas. As per Section 3(1) the State Government may, by notification, establish a Gram Sabha for a village or a group of adjoining villages having population of 1000 or more. As per Section 10(1) for every Gram Sabha there shall be a Gram Panchayat constituted in accordance with the provisions of this Act. Chapter IX deals with Janapada Panchayat. As per Section 103(1) the State Government may, by notification divide a district into blocks. Section 104 is relevant for our present purpose along with its proviso. It is, therefore, extracted in extenso:-