RAZA BULAND SUGAR CO LTD Vs. MUNICIPAL BOARD

JUDGEMENT

(1.) The Municipal Board of Rampur decided to impose water tax on the annual value of lands and buildings within the limit of the municipality as provided in Section 128 (1) (x) of the U. P. Municipalities Act (hereinafter referred to as the Act). After framing necessary proposals and rules, a notification dated 23rd March, 1957 was issued imposing water tax from 1st April, 1957. Tile tax was fixed at the rate of 10 per cent of the annual value of the lands and buildings. The petitioner, Raza Buland Sugar Company limited, received notices from the Municipal Board (hereinafter referred to as the Board) for payment of Rs. 37,789-92 up as water tax assessed in respect of lands and buildings of the petitioner for the years 1957-58 and 1958-59.

(2.) The petitioner has come to this Court under Article 226 of the Constitution Paying for the issue or a writ or order in, thg nature of certiorari quashing the notices of demand and a writ in the nature of mandamus directing the Board not to recover from the petitioner any water tax on the basis of those notices of demand on the ground that the tax is illegal and the Board had no jurisdiction to impose it.

(3.) The petitioner's attack on the validity of the water tax in question is principally three pronged. The first contention of the petitioner is that it was beyond the competence of the Board to levy this tax. Another contention is that by exempting the main residential palace of His Highness the Nawab of Rampur from water tax, the Board has discriminated against the petitioner. The imposition of the tax is, therefore, hit by the provisions of Article 14 of the Constitution. The third contention of the petitioner is that publication of the proposal and the rules regarding the imposition of the tax was not made in accordance With the provisions of the Act and thus the petitioner was deprived of the opportunity of raising objections either to the proposal for imposition of tax or to the draft rules framed by the Board.