MANOHAR Vs. GRAM PANCHAYAT, RATANPUR

JUDGEMENT

(1.) THIS is a petition under Aiticle 226 of the Constitution challenging the imposition of registration fee on the 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. & Berar Panchayats 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 'sale 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.) IN the return filed by the Gram Panchayat it is stated that for the relevant year (1960 -61) the Theka (contract) of the cattle market was auctioned publicly. Keshav Prasad, Respondent No. 2, being the highest bidder, paid Rs. 17,710/ - as auction price when it was knocked down in his favour. The Gram Panchayat maintains the market; it keeps it clean and hygienic, it also renders services by giving market facilities; and it also provides facilities for water and conservancy. It is admitted that the basis for the fee of registration is the price of the animal sold within the market. These facts the learned Counsel for the Petitioner has not challenged before us and we must accept them.