PRAVULAL PATADIA Vs. STATE OF ORISSA

JUDGEMENT

(1.) This is a petition under Article 226 of the Constitution challenging the validity of the order of the Gram Panchayat of Gati Rout Patna directing the petitioner to pay license fee at Rs. 20/ per lakh of bricks manufactured in his kiln within the jurisdiction of the said Panchayat.

(2.) Chapter V-l of the Orissa Gram Panchayat Act, 1948, contains various provisions dealing with regulation and control over industries, and factories (including dangerous and offensive trades, occupations and processes) within the jurisdiction of Gram Panchayat) Section 49-G confers powers on a Gram Panchayat to levy fees in respect of any licenses granted under that Chapter, subject to certain maximum, to be determined by the State Government by notification in that behalf. In exercise of the powers conferred by this section the State of Orissa in the local Self-Government Department Notification No. 1283 L. S. O. dated the 1st December, 1950, fixed the maximum fees leviable per annum in respect of licenses granted to various trades and industries or occupations mentioned in the Table appearing in that Notification. Item M-l of the Table says that for the burning of bricks the maximum fee payable is Rs. 50/- per lakh. In exercise of the power conferred by this notification the Gram Panchayat levied a licen.se fee at Rs. 20/- per lakh of bricks manufactured by the petitioner in his kiln.

(3.) The main point urged against the validity of the said levy by Mr. Ranjit Mohanty was that, in essence, it was not a "fee" but a "tax" and as such in excess of the powers conferred on the Gram Panchayat by Section 49-G of the Gram Panchayat Act. On behalf of the State of Orissa a counter affidavit wa,s filed in which it was admitted that the amount collected from owners of brick kilns was not set apart for controlling that trade or for rendering service to persons who may take out license for the purpose, but was absorbed in the general revenue of the Panchayat, and utilised for "all-round improvement of sanitation, communications, education and other activities cf Government undertaken from time to time (paragraph 10) and also "for construction of grain golas agricultural improvements and. many other such subjects" (paragraph 11).