MOOLJI BHAI Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) This is a petition under Article 226 of the Constitution of India challenging the imposition of terminal tax by respondent Nagar Panchayat, Timarni on export of timber, fuel wood, coal and bamboos as per Section 129 of the M.P. Municipalities Act, 1961 (hereinafter to be referred to as the Act).

(2.) By resolution dated 13-8-1995 (Annexure P-2) respondent No. 2 Nagar Panchayat, Timarni has revised the terminal tax levied under Section 127(6)(n) of the Act on the goods exported from its Municipal limits. The revised rate is 0.50 per cent. on the price of bamboos, fuel wood, coal and timber. The terminal tax was originally imposed by the respondent No. 2 by the notification dated 19-5-1992 of the State Government. The State Government has now framed the Terminal Tax (Assessment and Collection) on the Goods Exported from the M.P. Municipal Limits Rules, 1996 (hereinafter to be referred to as the Rules) by the notification dated 21-2-1997 published in M.P. Gazette on 7-3-1997. It is admitted during the course of arguments that these rules are binding on the respondent Nagar Panchayat and the levy of the terminal tax has to be in conformity with these rules. There is a schedule appended to these rules which provides the name of the commodity and the rate at which the terminal tax is to be levied. As per item No. 10 of this Schedule terminal tax at the rate of 0.50% on the basis of price can be levied on "all sorts of timber used for building construction". Therefore, the rate of the terminal tax which is being levied on this item by the respondent No. 2 is unaffected. But bamboo and fuel wood or coal made from wood are not covered by this item. Fuel wood and bamboo cannot be said to be "timber" used for building construction. These three items would come under the residuary item No. 15 on which terminal tax at the rate of 0.10% only can be levied.

(3.) The learned counsel for the petitioners has raised only two other points at the time of hearing (a) the petitioners do not have any shop or establishment within the municipal limits of the nagar panchayat, Timarni and therefore they are not liable to pay this tax and (b) the respondent No. 2 cannot recover the tax on the barrier or naka. These points are to be answered in this order.