S KIRPAL SINGH DUGGAL Vs. MUNICIPAL BOARD GHAZIABAD

JUDGEMENT

(1.) Between August 1, l953 and March 28, 1955, the appellant transported 521 truck-loads of "stone-grit" and other materials from Delhi to Murarloagar in execution of a contract to supply goods for use by the Government of India. The trucks of the appellant had to pass through the toll barrier of the Municipality of Ghaziabad, and toll at the rate of Rs. 8 per truck was collected from the appellant. The appellant obtained a certificate from the Garrison Engineer, M. E. S. Meerut, on June 10, 1955, that the goods transported by the appellant "were meant for Government work and had become the property of the Government". The appellant then applied on June 14, 1955, to the Municipality of Ghaziabad for refund of the amount of toll paid Dursuant to the exemption granted by Government Order under S. 157 (3) of the U. P. Municipalities Act, 1916, and the Municipality having declined to refund the amount, the appellant served the statutory notice and commenced an action against the Municipality in the Court of the Munsif at Ghaziabad on February 11, 1956, for a decree for Rs. 4,300. The Trial Court decreed the claim. In appeal, the IInd Civil Judge, Meerut, upheld the claim of the appellant only for the amounts paid after December 13, 1954. The High Court of Allahabad affirmed the order of the Civil Judge. The appellant has appealed to this Court.

(2.) The relevant provisions of the Act, the rules and the orders issued by the Government may first be noticed. Under S. 128 of the U. P. Municipalities Act 1916, the Municipal Board is, subject to any general rules or special orders of the State Government in that behalf, competent to impose in the whole or part of a municipality the taxes specified in that section and one of the taxes specified is "a toll on vehicles and other conveyances, animals, and laden coolies entering the municipality". Under S. 157 (3) of the Act the State Government may by order, exempt from the payment of a tax, or any portion of a tax imposed under the Act any person or class of persons or any property or description of property. Pursuant thereto the Government of U. P. issued an order on April 15, 1939, which, insofar as it is material, provides:

(3.) The Civil Judge was of the opinion that toll is immediately payable in all cases, but where goods are for the use of the Government, it becomes refundable when the property becomes the property of the Government, and a certificate is issued by the officer concerned to that effect. He further held that the application for refund must be made within fifteen days of the date of the certificate and within six months of the date of payment, and an application for refund within six months from the date of actual payment is a condition precedent to the refund of the toll and even though a certificate by the prescribed authority is issued beyond six months of actual payment. The High Court agreed with that view.