KRISHI UTPANNA BAJAR SAMITEE Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THIS writ petition filed under Article 226 of the Constitution of India has brought in question the legality and validity of the Government Resolution No. L.F.C. 1094/PRAKRA. 2542/24 dated 1st June, 1995 as well as Government Resolution No. VPA -1095/K No. 17/22 dated 7th April, 1995. It is very specifically contended that the first resolution dated 7th April, 1995 is ultra vires of the provision of Section 127(1) of the Bombay Village Panchayats Act, 1958 (Village Panchayats Act, for short) and second Resolution dated 1st June, 1995 is ultra vires of the provisions of Section 155 of the Maharashtra Zilla Parishads and Panchayat Samitis Act (Zilla Parishads Act, for short).

(2.) THE Satara Zilla Parishad (Respondent No. 6) had passed a resolution recommending to the State Government to charge the general cess at the rate of 20 paise for every one rupee of the land revenue and increased cess at the rate of 180 paise. Thus taking the total of the cess amount to 200 paise for every rupee of land revenue. This rate was to be operative for the period from 1st August, 1988 to 31st July, 1998. Pursuant to the said recommendation of the Zilla Parishad the State Government accepted the proposed increase in the cess rates. However, the State of Maharashtra by Amendment Act Maharashtra - I of 1993 amended the provisions of Section 144 of the Zilla Parishads Act and the amended Section states that the State Government shall levy, on the conditions and in the manner therein after described, a cess within a district at the rate of two hundred paise or at such increased rate not exceeding seven hundred as may be determined by the State Government under Section 155, on every rupee of sum payable to the State Government as ordinary land revenue, except sums payable on account of any of the charges mentioned in the Fourth Schedule, and on every sum which would have been payable on any land as land revenue had there been no alienation of land revenue. Pursuant to the said amendment, the Government of Maharashtra vide communication dated 3rd May, 1993 advised all the Zilla Parishads to forward a proposal for increase in cess to be levied under the provision of Section 144 read with Sections 151, 152 and 155 of the Zilla Parishads Act. 11 was also made clear that the increased rate of cess shall be made applicable from 1st April, 1993. The same advice was also communicated through another letter dated 19th May, 1993 and pursuant to this communication the Respondent No. 6 Zilla Parishad passed a resolution on 4th February, 1994 and forwarded it to the State Government on 28th February, 1994 wherein it was recommended that the general cess to be charged at the rate of two hundred paise and the increased cess rate to be fixed at five hundred paise for every rupee of land revenue thereby taking a total revenue charged to seven hundred paise on every rupee. By the impugned resolution dated 1st June, 1995 the recommendations of the Zilla Parishad were accepted by the State Government and in para 3 of the said resolution the State Government specified the departmental activities for which the income out of the cess could be utilized. On 7th April, 1995 the Government issued the G.R. stating therein that cess under Section 127 of the Village Panchayats Act shall be levied at 100 paise in place of 20 paise on every rupee of land revenue with effect from 2nd October, 1992.

(3.) SECTION 6 of the Zilla Parishads Act provides for establishment of Zilla Parishad and Section 7 provides for Authority and Organization thereof. Panchayat Samitis are constituted under Section 57 and the powers and duties of the Zilla Parishad and Panchayat Samiti are set out in Sections 100 and 101 of the said Act. Under Section 1 of the Zilla Parishads Act the primary responsibility of the Panchayat Samitis are specified and the scheme of Sections 100 and 101 sets out the methodology of utilization of funds for different developmental activities under various heads. Chapter X of the Zilla Parishads Act provides for taxation and there are different sources for the augmentation of finance which is placed at the disposal of the Zilla Parishad concerned for the purpose of discharging its duties and the principal source of this augmentation of finance is by raising the collection of cess and increased cess under the Zilla Parishads Act. For the purpose of present Petition the provisions of Sections 144, 153, 154 and 155 are relevant. As noted earlier, Section 144 empowers the Zilla Parishad to levy cess at a minimum rate of 200 paise and at a maximum rate of 700 paise on every rupee of land revenue payable. Whereas, Section 153 provides that the cess leviable under Section 144 shall, subject to the provisions of Sub -sections (5) and (6) of Section 155, be paid by the State Government to the Zilla Parishad within the jurisdiction of which the lands are situated after deducting such proportion thereof as costs of collection, as the State Government may prescribe by rules. Section 154 provides that the State Government may on the application of Zilla Parishad to which the cess is payable, suspend or remit the collection of cess or any portion thereof in any area subject to the jurisdiction of such Zilla Parishad. Whereas Section 155 of the Zilla Parishads Act sets out the procedure to be followed to increase the rate of cess under Section 144. Sub -section (1) of Section 155 requires that the concerned Zilla Parishad should pass a resolution at a Special meeting called for the purpose to increase the cess rate and forward the same to the State Government for its consideration. Whereas Sub -section (3) of the said Section stipulates that the resolution under Section (1) shall state the reason for which such increase has been proposed and the special purpose for which the proceeds of the increase in the rate are to be utilized, and the period for which the increase in the rate shall continue. As per Sub -section (4) of Section 155, on receipt of such a resolution forwarded by the Zilla Parishad, the State Government may by Notification in the Official Gazette determine the increase in the rate of cess on land revenue in respect of the lands situated in the District or Block, as the case may be so however that the rate does not exceed 700 paise on every rupee and specify the date from which it shall take effect and the period during which it shall continue.