TIMBER TRADERS ASSOCIATION, PATHANKOT Vs. DISTRICT BOARD, GURDASPUR

JUDGEMENT

(1.) THIS is a second appeal arising out of a suit for a declaration that the sleeper tax imposed by the District Board, Gurdaspur, at the rate of six Naye Paise per sleeper imported into the area subject to the authority of the District Board, Gurdaspur by any road which came into force from 23rd July 1959, by virtue of notification No. 11992/LD/ -58/13577A dated 23rd April 1959 was unauthorised, illegal, unconstitutional etc. and for a permanent injunction restraining the defendant Board from recovering the said tax. The trial Court decreed the suit to the extent of declaring that the imposition of tax on sleepers which were only transported through the area of the District Board and not consumed, used or sold therein was illegal and ultra vires and a permanent injunction was granted restraining the defendant Board from recovering that tax from the timber traders who were member of the plaintiff Association. The lower appellate Court came to a different conclusion and held that the tax had been validly imposed and that the plaintiff Association was not entitled to the declaration prayed for or to the injunction being granted.

(2.) ALTHOUGH a number of points were agitated in the Courts below, it is no longer disputed on behalf of the plaintiff -appellant that the notification dated 23rd April 1959 is valid so far as those sleepers are concerned which are imported within the jurisdiction of the District Board which was abolished on 8th February 1962 but which has now been replaced by the Zila Parishad. For the purposes of this case, however reference will be made to the District Board only. The controversy centres round the meaning and connotation of the words "imported into the area". According to the appellant, this expression can cover only those sleepers which are brought into the area subject to the authority of the District Board for purposes of consumption, use or sale therein, whereas it is maintained on behalf of the respondent that as soon as any sleeper is brought within such area it becomes liable to the levy of tax even if it is brought there merely in the course of transportation to places outside the area of the District Board. In other words, the position taken up on behalf of the respondent is that even those sleepers which passed through the area of the District Board in the course of transportation would be covered by the notification.

(3.) IT was contended before the lower appellate Court that if the words "imported into the area" are taken to mean that even those sleepers which are brought into the limits of the Board in the course of transit and carriage to other places have been subjected to tax by the impugned notification, there would be a contravention of the provisions contained in Part XIII of the Constitution. Article 301 provides that subject to the other provisions of this Part, trade, commerce and intercourse throughout the territory of India shall be free. Article 304 provides that notwithstanding anything in Article 301 or Article 303, the Legislature of a State may by law: