SURAT JILLA KHEDUT SAMAJ Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioners seek to challenge the notification dated 30th July, 1983 issued by the State Government under Sec. 169(3) of the Gujarat Panchayats Act, 1961, increasing rate of cess levied under sub-sec. (1) of Sec. 169 in relation to the Surat District under the jurisdiction of the Surat District Panchayat to 150 paise from 50 paise on every rupee of land revenue payable for a period of 2 years on and with effect from 1st August, 1983. On 26th March, 1984 Hon'ble Mr. Justice N. H. Bhatt, while admitting the petition, had granted ad-interim relief as prayed for by the petitioners as a result of which the increase in the rate under the impugned notification could not be released by the District Panchayat.

(2.) The petitioners are holding agricultural lands in the district of Surat. By a resolution passed on January 19, 1980, the respondent No. 2 District Panchayat had resolved to recommend levy of cess at the rate of 50 paise on every rupee of every sum payable to the State Government as ordinary land revenue and the State Government had increased the levy to 50 paise for a period of 5 years with effect from 1st August, 1980 in relation to the said District Panchayat. The upper limit of rate of cess was raised to 200 paise on every rupee on which such cess was leviable under Sec. 169(1) by Gujarat Act 11 of 1983 amending the proviso to Sec. 169(3)(a) of the said Act. The said upper limit was raised to 300 paise by Gujarat Act 13 of 1989 which came into force from 31-3-1989. On 14-6-1983, the District Panchayat, Surat passed a resolution being Resolution No. 4(1) under which it resolved to move the State Government to increase the rate of cess to 150 paise with effect from 1- 8-1983. The minutes and the resolution are at Annexure "III" collectively to the petition. On 3-7-1983, the Government issued notification in the official gazette increasing the rate of the cess as proposed by the District Panchayat in exercise of its powers under Sec. 169(3)(b) of the said Act.

(3.) It was contended on behalf of the petitioners that the impugned notification was issued on the basis of the resolution of the District Panchayat passed on grounds not germane to the purpose of the levy. It was contended that the minutes of the resolution of the District Panchayat indicated that the increase in the rate of cess was intended to meet with the expenses of providing hutments which was not a function enumerated in Schedule III to the Act as contemplated by Sec. 169(3) of the said Act. It was further contended that the District Panchayat could not have gone beyond the scope of Sec. 169(3) which prescribes the norms for the increase of the rate of cess. It was argued that the increase in rate of cess was sought by the District Panchayat not because of its needs but because of the amendment in the proviso to Sec. 169(3) raising the upper limit prescribed for such cess and that it was based on an extraneous ground of providing hutments to the villagers. It was also contended that the impugned notification was issued without proper application of mind, inasmuch as the District Development (sic.) had applied for the increase in the cess by its resolution dated 21st July, 1983 and in about a week's time the State Government hastily issued the impugned orders on 30th July, 1983 from which it should be inferred that the State Government did not apply its mind. It was finally contended that the affected parties were not given any hearing before increasing the rate of cess under Sec. 169(3) of the said Act.