SUMER CHAND JAIN Vs. ZILA PARISHAD AND OTHERS

JUDGEMENT

(1.) PETITIONER Sumer Chand Jain operates his stage carriages on the Meerut -Fattapur and Meerut -Laliyama routes. By means of demand notices dt. 24 -12 -1972 and 13 -12 -1972, Karya Adhikari. Zila Parishad Meerut, demanded a sum of Rs. 1112/ - as Circumstances and Property Tax, dues from the Petitioner. By means of this petition Under Article 226 of the Constitution the Petitioner prays for a direction that the Zila Parishad Meerut be restrained from realising any circumstance and property tax, as according to him, the same has not been imposed in accordance with law.

(2.) RELEVANT facts as appearing from various affidavits filed in the case and in respect of which there is no dispute between the parties are that the Distt. Board Meerut vide its resolution dt. 1 -8 -1924 decided to impose tax on circumstances and property, Under Section 108(b) of the Distt. Boards Act. Subsequently, on 22/23 -12 -192 it passed a special resolution approving the draft proposal for the imposition of Circumstance and Property tax, as required by Section 115(1) of the Act. It also prepared the draft rules as required by Section 115(2) of the Act and published the same along with the proposal for the imposition of the tax as required by Section 115(3) of the Act. In due course after finally settling the proposals the Board forwarded the proposal for the imposition of the tax as also the draft rules to the State Govt. The State Govt. then published the draft rules in the State Gazette and invited objections thereon. After finalising the Rules, the State Govt. forwarded the same to the Distt. Board which on 21 -12 -1925 passed a special resolution as required by Section 119 of the Act specifying that the circumstance and property tax as sanctioned by the State Govt. was to be enforced with effect from 1 -4 -1926. A copy of the Rules which were approved by the State Govt. and after receiving which the Board passed the special resolution dt. 21 -12 -1925, has been filed as Annexure 1 to the writ petition. These Rules did net make any reference to the person or the class of persons who were to be made liable for the payment of Circumstance aid Property Tax. After receipt of the resolution passed by the Board Under Section 119 of the Act, the Local Govt. notified the imposition of the tax with effect from 1 -4 -1926 vide notification dt. 13 -1 -1926. However, it was subsequently realised that the resolution of the Distt. Board dt. 21 -12 -1925, imposing Circumstance and Property Tax with effect from (sic) -4 -1926 was in contravention of Section 119 of the Act which provided that the pate of imposition of tax should not be (sic) than six weeks from the date of the resolution. The State Govt. therefore vide notification dt. 27 -1 -1927, cancelled its notification dt. 13 -1 -1926. Thereafter the Distt. Board passed a fresh resolution dt. 28 -3 -1927 and resolved that the Circumstance and Property Tax be imposed with effect from 15 -5 -1927 and the State Govt. issued a notification dt. 22 -4 -1927 Under Section 120(2) of the Distt. Boards Act specifying that the tax shall be imposed with effect from 15 -5 -1927. On 27 -1 -1930 the State Govt., in supersession of the earlier Rules enforced a new set of Rules for the assessment and collection of Circumstance and Property tax in the district of Meerut. In these Rules also, there was no reference to the persons or the class of persons who had been made liable for the Circumstances and Property Tax. Subsequently, the rules as enforced on 27 -1 -1930 were again subjected to some amendments and finally on 8 -(sic) -1946 the existing rules were so amended that a new rule was added stating for the first time that every person residing or carrying on business in the rural area bf Meerut district shall be assessed to Circumstance and Property Tax.

(3.) THE procedure for imposition of tax in the nature of Circumstance and Property Tax has been laid down in Sections 115 to 120 of the Distt. Boards Act. Under Section 115(1), whenever the Distt. Board desires to impose tax, it has to pass a special resolution framing a proposal and specifying the tax which it proposes to impose as also the persons or class of persons who are to be made liable for the tax. Sub -section (2) the requires the Board to prepare draft Rules which it desires the Local Govt. to make in respect of matters contained in Section 123 of the Act, i.e., for providing a machinery for assessment and collection of the tax. The proposal for imposition of tax, made Under Section 115(1) along with draft Rules has to be published by the Board. Section 116 then affords an opportunity to the persons concerned to object to the proposal for imposition of the tax. After considering the objections, if any, the Board is to finalise the proposal and to forward the same to the State Govt. along with the objections received by it. The Local Govt. then considers the objections and thereafter it either refuses or sanctions the proposal, or returns the same to the Board for further consideration, or sanctions it with such modification that does not involve an increase of the amount of tax sought to be imposed. After the State Govt. has sanctioned the proposal for imposition of the tax, it proceeds to consider the draft Rules, for the assessment and collection of the tax submitted by the Board and to frame the same. After framing those rules the State Govt. sends the same to the Board. Thereafter, Section 119 of the Act requires the Board to pass a special resolution directing the imposition of the tax with effect from the date to be specified therein not less than six weeks from the date of the resolution. The special resolution Under Section 119 is then forwarded to the State Govt. which publishes a notification Under Section 120(2) of the Act and the tax stands imposed with effect from the appointed date.