AHMEDABAD MANUFACTURING AND CALICO PRINTING COMPANY LIMITED Vs. MUNICIPAL CORPORATION OF GREATER BOMBAY

JUDGEMENT

(1.) This appeal assails the dismissal of a petition questioning the constitutional validity of section 170(1)(ii) of the Bombay Municipal Corporation Act, Rule 4 of the Sewerage and Waste Removal Rules, 1974-75 and onwards plus the notices and bills claiming sewerage charges on the afore-mentioned basis.

(2.) Under the Bombay Municipal Corporation Act, the respondents 1 to 4 hereinafter collectively referred to as the "BMC" has the power to impose taxes as enumerated in section 139 of the Act. Section 140 specifies the sewerage tax and the sewerage benefit tax as some of the taxes leviable under the heading "property taxes." The sewerage tax is for--- "collection removal and disposal of human waste and other wastes." The sewerage benefit tax is for--- "making and improving facilities for the collection, removal and disposal of human waste and other wastes and for maintaining and operating such works." Section 170 of the Act empowers the Standing Committee to make such rules as be necessary for performing the task of removal of human waste etc. etc. The impugned sub-section provides for the levy of---

(3.) The sewerage tax, sewerage charge and sewerage benefit tax had a pecursor in the halal-khore tax. That tax was levied at a certain per cent of the rateable value of property. Adequate as this may have been when Bombay was constricted in size and population, with the growth in Bombay, the said tax became out-dated. If the Corporation was to continue to render the basis obligation to provide an adequate system for collection, conveyance and disposal of garbage, it became necessary to provide for a proper drainage system. Studies undertaken towards this end indicated heavy capital and revenue outlays. The World Bank was approached and subject to various terms laid down by it, the said Bank agreed to make finances available. To comply with the terms and conditions laid down by the said Bank, it became necessary to amend the BMC Act. Towards this end, came to be introduced before the legislature L.A. Bill No. XLV of 1973. In relation to sections 140 and 170 of the Act, the changes proposed were explained in the Statement of Objects and Reasons in these words :---