LAXMINARAYAN ANANDILAL Vs. GRAM PANCHAYAT, KHIRKIYA

JUDGEMENT

(1.) BY this application under Article 226 of the Constitution of India, the Petitioners challenge the validity of the imposition of a tax by the Gram Panchayat of Khirkiya on persons using sites on land under its control, and seek a writ of certiorari to quash the resolutions passed by the Gram Panchayat on 23rd January 1956, 28th August 1956 and 13th February 1957 leading to the imposition of the tax, as also a writ in the nature of mandamus restraining the Gram Panchayat from recovering the tax imposed from the Petitioners.

(2.) THE Gram Panchayat is a body constituted under the Central Provinces and Berar Panchayats Act 1946 and the Petitioners occupy structures of their own in Khirkiya in which they carry on their business or profession. Under section 42(1) of the Act, a Gram Panchayat is empowered to impose with the approval of the Janapada Sabha inter alia "fees on persons exposing goods for sale in any market or place belonging to or under the control of the Gram Panchayat or for the use of any building or structure therein". The procedure for the imposition of a tax is prescribed in Chapter -XXVII of the Central Provinces and Berar Panchayat Rules, 1948. Briefly stated, the procedure is that the Gram Panchayat is first required to pass a resolution to impose a tax. Then a proclamation containing the purport of the resolution for the information of the persons affected by the taxation proposal and inviting their objections before a date to be proclaimed by beat of drum or by written notices affixed at some conspicuous place in the Gram Panchayat area or has to be issued by both. The Gram Panchayat is then enjoined to reconsider within a fortnight from the proclaimed date the resolution along with the objections, if any. If it decides to impose the tax, it has to forward the proposal together with the objections, if any, to the Janapada authority for approval. If the Janapada Sabha materially modifies the proposal, the purport of the modified proposal has again to be proclaimed for objections in the manner indicated above. The Janapada authority, if it approves the proposal, is required to specify a date from which the tax will come into force and the tax becomes effective from the date specified by the Janapada authority. After the imposition of the tax, the Gram Panchayat has to prepare every year in the first fortnight of the month of October a schedule of rates or list of Assessees with the actual amount of assessment, as the case may be. The schedule of rates fixed and the assessment made has then to be publicly announced in the Gram Panchayat area and the assessment list shown to any person affected by it who desires to see it. The Gram Panchayat is then required to hear any objection that may be put forward against the assessment within fifteen days from the date of the announcement of the assessment when the objections are disposed of the final assessment list has to be signed by the Sarpanch and two Panchas before the 15th November and a copy of the list has then to be republished locally. Any person dissatisfied with the assessment has a right of appeal to the Deputy Commissioner within thirty days from the date of the republication of the assessment list. The assessment list revised in the light of the decision in appeal has then to be publicly announced by beat of drum in the Gram Panchayat area and published by affixing a copy of the assessment list on the notice -board of the Gram Panchayat not later than the 15th February preceding the year for which the assessment is made.

(3.) THE argument put forward by Shri Sen, Learned Counsel for the Petitioners, was that in imposing the tax the Gram Panchayat did not comply with the procedure prescribed in Chapter XXVII of the Panchayat Rules, 1948 in that the resolution passed by the Gram Panchayat on 12th May 1955 and reaffirmed on 23rd January 1956 did not comply with the requirements of Rule 1 of Chapter XXVII as it did not fix the amount or rate of the proposed tax or indicate the class of persons proposed to be taxed and the system of assessment to be adopted; and that there was no proclamation of the purport of the resolution proposing the imposition of the tax inviting objections from persons affected thereby and no opportunity was given to such persons to submit their objections. It was also said that the requirements of rules 4, 5, 6(sic), 7 and 8 of Chapter XXVII were also not complied with inasmuch as there was no publication in the Gram Panchayat area of a schedule of rates or of a list of Assessees with the actual amount of assessment and no opportunity was given to persona affected by such list to submit their objections as against the assessment and thus the Petitioners were deprived of their right of appeal to the Deputy Commissioner, and there was also no publication of the final list as required by Rule 8.