SARPANCH Vs. PRESIDENT

JUDGEMENT

(1.) The petitioner-Gram Panchayat has approached this court for giving appropriate direction to the Taluka Panchayat to refund 40% of the gross collection of the cess made by it for the year 1995-96, and it is also prayed for giving appropriate direction to the respondents to assign 50% of the gross collection of Taluka panchayat cess and surcharge on octroi as per section 206 of Gujarat Panchayats Act, 1993 (hereinafter referred to as the "Act").

(2.) . The short facts of the case are that the petitioner is a Gram Panchayat duly constituted under the provisions of the Act. It is collecting the octroi and other local taxes and it is the contention of the petitioner-Panchayat that collection of certain taxes which are meant for the purpose of Taluka Panchayat is made by the Gram Panchayat and is given to the Taluka Panchayat. It is an admitted fact that the petitioner-Gram Panchayat was paid 10% of the collection for the year 1995-96. However, 90% of the amount of the gross collection was retained by the Taluka Panchayat, Meghraj. The petitioner had made representation to the authority for refund of 40% of the gross collection for the year 1995-96. However, nothing was done and therefore this petition.

(3.) . Mr.Adeshra appearing for the petitioner submitted that on true and correct interpretation of section 206(2)(b) of the Act, the fund of the Taluka Panchayat, at the most, can constitute 50% and not more. He submitted that therefore the Taluka Panchayat has no authority to retain more than 50% of the gross collection and therefore the Gram Panchayat is entitled to get back 50% of the gross collection. Mr.Adeshra in furtherance of his submission has also contended that the intention of the legislature behind making the provisions is to see that the Gram Panchayat is sufficiently compensated and can utilise something for the betterment of the residents of the Gram Panchayat. Mr.Adeshra submitted that the Taluka Panchayat, under no circumstances, can retain the amount exceeding 50% from the gross collection.