ORIENT PAPER MILS Vs. MUNICIPAL COUNCIL, DONGARGARH

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution of India challenging the imposition of terminal tax by the respondent Municipal Council, Dongargarh on export of bamboos as per section 129 of the M.P. Municipalities Act, 1961 (hereinafter to be referred to as 'the Act').

(2.) BY resolution dated 16.12.1997 (Annexure P -1) the Municipal Council, Dongargarh has imposed terminal tax with effect from 1.4.1998 as provided under section 127(6)(n) of the Act on the goods exported from the Municipal - limits of Dongargarh Municipality. The terminal tax on bamboos is to be levied at the rate of Rs. 300/ - per truck or Rs. 200/ - per metador/tractor. On the date of the aforesaid resolution the Terminal Tax (Assessment and Collection) On the Goods Exported from the M.P. Municipal Limits Rules, 1996 had come into force. The notification was issued on 21.2.1997 and it was published in M.P. Gazette on 7.3.1997. A perusal of the resolution shows that the Municipal Council, Dongargarh was not aware of these rules when this resolution was passed. It was admitted during the course of the arguments that these rules are binding on the Municipal Council 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. There is no specific mention of bamboos in items No. 1 to 14. Therefore, item No. 15 is applicable for bamboos. According to this item the terminal tax at the rate of 0.10% on the price of the bamboos can be levied.

(3.) THE imposition of terminal tax on bamboos on the basis of truck load is not permissible under the rules. The impugned resolution dated 16.12.1997 so far as it imposes the terminal tax on bamboos at the rate of Rs. 300/ - per truck or Rs. 200/ - per metador/tractor is quashed. The respondent Municipal Council may pass a fresh resolution in conformity with the rules framed by the State Government. The petitioner in the meanwhile will pay terminal tax at the rate of 0.10% on the price of bamboos exported by it from 1.4.1998 from the Municipal limits of Dongargarh by filing the return on the prescribed form and by depositing the same in the Municipal treasury as per rules.