SARJUPRASAD Vs. MUNICIPAL COUNCIL

JUDGEMENT

(1.) THIS is a petition under Art. 226/227 of the Constitution of India, seeking quashment of the resolution (Annx. P3) dated 2.8.95 imposing terminal tax on country liquor u/s. 127 of the Municipalities Act.

(2.) THE petitioner is a liquor contractor and carries on business of sale of country liquor in Badnawar, Distt. Dhar. He is required to send liquor from Badnawar to various parts of the tehsil. Respondent No.1 the Municipal Council, Badnawar in exercise of its powers u/s. 127 and 129 of the M.P. Municipalities Act, 1961 (for short, 'the Act') passed a resolution dated 4.7.95 (Annx. R -1) imposing terminal tax on various goods including country liquor exported from 'vithin the municipal limits of Badnawar. By a subsquent resolution dated 2.8.95 (Annx. R -2) the former resolution was made effective from 5.8.95. Under the resolution (Annx. R -1) the terminal tax on liquor was levied @ Rs. 2.00 per litre. Respondent No. 2 the Government of Madhya Pradesh in exercise of their powers u/s. 129 (1) of the Act issued a notification (Annx. P4) dated 15.11.95 specifying upper ceiling limits for imposition of terminal tax on various goods by the Municipalities throughout the State of Madhya Pradesh. The limit prescribed for all types of liquor was 1.00 per cent ad -valorem. Consequent to this'direction of the State Government the respondent No.1 municipality by its resolution dated 5.2.96 (Annx. R -4) amended its earlier resolution (Annx. P -3) so as to bring in conformity with the government order.

(3.) THE respondent No.1 has filed return in oppugnation and it is contended that the proviso to sec. 129 authorises the municipal council to impose a tax even during a financial year before or after adoption of the annual budget. Similarly, the imposition oflimitations and conditions by the State Government, it is further contended, is not a condition precedent to exercise powers of imposition of tax by the municipality u/Ss. 127 and 129 of the Act.