KANAKCHAND PREMCHAND SANOHVI AND ANOTHER Vs. STATE OF MAHARASHTRA THROUGH THE SECRETARY URBAN DEVELOPMENT, PUBLIC HEALTH AND HOUSING DEPARTMENT, BOMBAY AND ANOTHER

JUDGEMENT

(1.) This judgment will govern Special Civil Applications Nos. 799, 779, 852, 378, 844, 848, 853, 882 and 991 of 1968 as all these petitions involve a common question about the validity of section 105 of the Maharashtra Municipalities Act, 1965 (hereinafter referred to as the Act) and the Maharashtra Municipalities (Octroi) Rules, 1968 (hereinafter referred to as the Octroi Rules) made by the State Government on 22-7-1968. Originally the law relating to municipalities in the Vidarbha Region was contained in the Central Provinces and Berar, Municipalities Act, 1922. Sec. 66 of the said Act gave power to the municipalities to impose the taxes enumerated therein, and one such tax was "an octroi on animals or goods brought within the limits of the municipality for sale, consumption or use within those limits". It is not in dispute that within the municipal limits of the Municipalities of Mangrulpir, Yeotmal, Malkapur, Ward, Chandur Railway, Washim, Arvi and Akot, octroi was imposed by those respectively municipalities. The C.P. and Berar Municipalities Act as in force in the Vidarbha Region of this State was repealed by the Maharashtra Municipalities Act, 1965. Different provisions of this Act were brought into force on different dates. Sections 2, 4, 9 to 39, 74, 296(1), (2), (3), (4), 299, 321, 342(1), (2), (3), (4), (5), (14), 345, 351 and Schedule I were brought into force on 14-9-1965; section 318 was brought into force on 27-10-1965; and the remaining provisions, other than sub-sections (5), (6) and (7) of section 75, were brought into force with effect from 15-6-1965. Sec. 4 of the Act classified municipal areas into three classes, 'A', 'B' and 'C' on the basis of the population thereof. A municipal area with a population of more than 50,000 was to be a 'A' class municipal area; with a population of more than 20,000 but not more than 50,000 was to be a 'B' class municipal area; and with a population of 20,000 or less, was to be a 'C' class municipal area. The number of members who constituted the Municipal Council was also determined on the population basis, and under section 9(2) the Director of Municipal administration had to fix for each municipal area the number of elected Councillors in accordance with the following table: <FRM>JUDGEMENT_41_LAWS(BOM)3_19741.htm</FRM>

(2.) Since these petitions relate to the validity of the provision with regard to municipal taxation, it is necessary to refer to the provisions of Chapter IX of the Act which deals with municipal taxation. The Act has classified the taxes into two categories, namely, compulsory and voluntary taxes. The imposition of compulsory taxes is provided for in section 105 which reads as follows:

(3.) Sec. 109 prescribes the procedure preliminary to imposing a tax specified in section 108, and it reads: