HARI CHAND MAHAJAN Vs. ATTAR CHAND AND COMPANY

JUDGEMENT

(1.) A terminal tax on goods carried by railway or road into the Union Territory of. Delhi from any place ourtside thereof is leviable under section 17(81) of the Delhi Municipal Corporation Act. 1937( hereafter called the Act ) at the rates specified in the Tenth Schedule of the Act. Section 178(2) authorised the Central Government by notification in the official Gazatte to vary these rates provided that."where the rates are increased, the increased rates shall not bemore than treble the rates so specified." By section 179(1) the said lax may be collected by the Central Government in such manner and through such agency as maybe specified by notification in the Official Gazette. Section 179(2) authorises the deduction of cost of collectionf the tax out, of the total proceeds of the tarminal tax as the Central Government may determine. Power to make rules is given to the Central Government by section 183 which is as follows :- "The Central Government may make rules in relation to the levy, asessment and colleclion of terminal tax under this Act and may by such rules provide for the following among other matters namely :- (a) the examination of goods liable to payment of terminal tax ; (b) the inspection, weighing or otherwise examining the contents of any conveyance or package for the purpose of ascertaining whether it contains any goods inrespect of which terminal tax is payable; (c) the seizure and confiscation of goods liable to terminal tax in case of refusal to pay such tax ; (d) the mesures to prevent,evasion of terminal tax ; (e) any Other matter which is to be or may be prescribed for the levy, assessment or collction of the terminal tax."

(2.) Acting under section 179(1) the Central Government has ordered that the terminal tax levied under section 178 of the Act shall be collected by the Central Government to accordance with the rules made under section 183 of the Act through the agency of the Commissioner. Municipal Corporation of Delhi and such agency shall be designated as "Delhi Terminal Tax Agency."

(3.) It appears that the power to levy the terminal tax is conferred on the State legislature by Entry 52 of List II-Stale List of She Seventh Schedule of the Constitution. Entry 32 it as follows:-