UPPER GANGES SUGAR MILLS LTD., SACHERA, DISTRICT BIJNOR Vs. NOTIFIED AREA COMMITTEE, SACHERA, DISTT. BIJNOR AND OTHERS

JUDGEMENT

(1.) Upper Ganges Mills Ltd. the petitioner, runs a vacuum pan factory for manufacturing sugar and for the purpose of manufacturing sugar it purchases sugarcane from different purchasing centres. It transport sugarcane through vehicles from various purchasing centres to the factory situate within the territorial limits of Notified Area Committee Sachera. district Bijnor.

(2.) The Notified Area Committee on 15th Aug., 1973 passed a resolution for realising transit fee from different vehicles in accordance with the Tran-sit Pass Fee Rules published in the Government notification dated 27th Dec., 1971 and the same be realised from 23rd Jan., 1973 onwards. The Government notification is under Sec. 296 read with Sec. 300 of the U. P. Municipalities Act. The petitioner's case is that the transit pass fee is in substance a tax which could be levied only in accordance with the procedure prescribed by Sections 131 to 135 of the U. P. Municipalities Act as applicable to the Town Area Committee No such procedure was adopted. No counter-affidavit has been filed. Hence the allegations made in the petition have to by accepted.

(3.) In U.P. Transport Vs. State of U.P., (1975 ALJ 522) a Bench of this court held that Sec. 296 of the U.P. Municipalities Act docs not provide for imposition of any tax. It only provides making of the rules consistent with the Act. Tax can be levied only in accordance with Sec. 128 read with Sections 131 to 135 of the U. P. Municipalities Act. In the afore said case the transit fee rules framed in l971came up for consideration. They were quashed as being an illegal levy. This decision is applicable to the present case on all fours.