VYAPAR MANDAL BISALPUR Vs. MUNICIPAL BOARD

JUDGEMENT

(1.) THESE two writ petitions challenge the validity of the levy and demand of 'Education Cess' by the Municipal Board, Bisalpur.

(2.) IN the year 1 19, U. P. Primary Education Act, 1919 (hereinafter referred to as the Primary Education Act) was enacted. IN the said Act, it was provided that where a notification under Section 3 of the said Act is enforced, the Board, namely, the Municipal Board may impose a tax called the 'Education Cess', the proceeds of which shall devoted solely to primary education. The State Government by a notification dated 24-5-1949 in exercise of the powers conferred by Section 128 (1) (XIV) of the U. P. Municipalities Act, 1916 read with Section 15 of the Primary Education Act imposed education cess with effect from June 1, 1949 on all the commodities brought for sale or purposes of trade within the municipal limits of Bisalpur, district Pilibhit. INitially the rate of tax was 3 annas percent on the value of all the goods imported into the Bisalpur Municipality. This rate was revised by a notification dated 22nd May 1951 and the rate was increased from 3 annas percent to 5 annas percent. By notification dated 18-11-1958 the rate was further enhanced to 50 NP percent.

(3.) THE first submission of the learned counsel for the petitioners is that the Basic Education Act impliedly repealed the Primary Education Act and as such the levy of education cess after the promulgation of Basic Education Act is wholly illegal and no demand can be made in respect of the same. THE second submission of the learned counsel is that even if the Basic Education Act did not impliedly repeal the Primary Education Act, then too under section 15 of the Primary Education Act, it is clearly provided that the proceeds from 'education cess' shall be solely devoted to primary education and since education cess is not being devoted solely to primary education, the demand of the education cess by the Municipal Board is wholly arbitrary and illegal.