MOHAN LAL Vs. STATE OF M P

JUDGEMENT

(1.) IN this petition the petitioners have challenged the Notification dated 2.1.1997 (Annexure -P/4), issued by the Municipality, Sanawad, District Khargone, on the ground that the item 'Gur' is neither manufactured nor produced in the town of Sanawad, as such, the Municipality cannot impose any Terminal Tax. The petitioner has also challenged that edible oil has been exempted from the Terminal Tax by Annexure -P -3, which is the Circular of the State Government dated 15.12.1995. Therefore, the submission of the learned counsel for the petitioners was that the Terminal Tax can only be imposed on those articles which are produced within the Municipal limits of Sanawad and exported during the course of Sale and, therefore, prayed for quashment of the impugned notification (Annexure P -4).

(2.) IN reply, submission of the Municipality was that the petitioners are traders dealing in Gur, oil and grocery articles. It was further submitted that the oil is produced by four mills situated in the town and one of the mills belongs to the petitioner No. 1 himself. It was further submitted by the Municipality that the Gur is also being produced and manufactured in the area therefore, the Municipality is having every right to recover tax by resolution. Learned counsel for the respondent Nos. 2 & 3 further submitted that this case is fully covered by the decision reported in Smt. Meera Khandelwal v. State of M.P. and others [1997 (l) JLJ 402] and another decision in Chief Municipal Officer, Kymore v. Eternit Everest Ltd. and another reported in 2000 (2) MPLJ 291.

(3.) IT has been further held by the Division Bench in the case Chief Municipal Officer, Keymore (supra) that the Municipal Council in exercise of its legislative function under section 127 read with section 129 of the M.P. Municipalities Act can levy the export tax by notification and such a function cannot be superseded by issuing any circular by the authority under rules. The legislative power can only be undermined by the Legislative Act and not by the subordinate authority.