MANOHAR VASUDEO Vs. GRAM PANCHAYAT

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution challenging the imposition of registration fee on animals and heads -of cattle sold in the Market of the Gram panchayat, Ratanpur, District Bilaspur. It is contended that what is charged from the purchasers in the said cattle market is really a 'tax'--not 'fee'--and is ultra vires the C. P. and Berar Panchayafe Act No. 1 of 1947. Section 42 (1) (c) of the act empowers a Gram Panchayat to charge 'fee' on sale of animals but does not authorise it to charge 'sales tax. '. The section runs thus :

(2.) GRAM Panchayat Ratanpur is constituted under the said Act. It has established a market for the sale of cattle. Every sale within the market is registered and a registration fee is charged. The fee varies according to the price of the cattle sold. In fact the registration fee is indirectly charged through a contractor who takes an annual contract of the market from the Gram Panchayat.

(3.) THE petitioner's grievance is that in the name of 'registration fee' what is really charged is 'sales tax' because it is calculated upon the price fetched by the sale. And, although the services required for registration of one cattle is the same as those required for registration of any other animal of the same class, still the fee varies. It is urged that the imposition is for raising money for general revenue. The petitioner had to pay such fee on different occasions and apprehends that such fee would be collected in future also.