DIGVIJAYSINHJI SALT WORKS LTD Vs. STATE OF GUJARAT

JUDGEMENT

(1.) These two petitions raise a short question of law relating to the interpretation of sec. 7 of the Gujarat Education Cess Act 1962 The facts giving rise to these two petitions are similar and it will therefore be sufficient if we state the facts of the first petition nemely Special Civil Application No. 850 of 1964 and indicate only the points of difference so far as the second petition namely Special Civil Application No. 1467 of 1968 is concerned. The petitioner in Special Civil Application No. 850 of 1964 is a limited liability company engaged in the manufacture of salt at Jamnagar. By an Indenture of Lease dated 29th April 1960 executed by and between the Governor of Bombay and the petitioner the Government of Bombay leased to the petitioner for a period of twenty five years commencing from 2nd June 1956 a piece of land admeasuring 1454 acres 22 gunthas situate in Bedi Port Taluka Jamnagar District Jamnagar. The Indenture of Lease provided :-

(2.) On 9th October 1962 the Legislature of the State of Gujarat enacted an Act called the Gujarat Education Cess Act 1962 (hereinafter referred to as the Education Cess Act) to provide for the creation of a fund for the promotion of education in the State of Gujarat and for the levy of education cess for the purpose. Sec. 3 of this Act provided:-

(3.) For the purpose of providing for the cost of promoting education in the State of Gujarat there shall be levied and collected in accordance with the provisions of this Act an education cess which shall consist of