MUNICIPAL COMMITTEE Vs. KHALSA SHOE CO

JUDGEMENT

(1.) The question of law requiring determination in these four appeals (L.P.As. 333 to 336 of 1973) against the order of the learned Single Judge is whether the imposition of 'water-tax' by the Municipal Committee, Ambala City, calculated on the basis of the rental value of the houses and granting exemption to certain buildings, is valid and in accordance with law. The learned Single Judge has held that it is not valid and the Municipal Committee, Ambala City, has come up in appeal in all these cases.

(2.) As detailed by the learned Single Judge, under sub-section (1) of Section 44 of the Punjab Municipal Act, 1891, the power was specifically given to the Municipal Committee to impose water-tax in order to meet the expenses incurred by it for maintaining works for the supply of water by the Municipal Committee. This tax could be imposed "upon buildings or lands which are so situated that their occupiers can benefit by the works". A similar provision empowering the Municipal Committee to impose such a tax on the same lines, was there in the Punjab Municipal Act, 1911 , in clause (h) of section 61-B. However, by virtue of the Punjab Municipal Amendment Act, 1923, section 61 of the Act of 1911 was re-enacted and clause (h) of section 61-B was deleted. Sub-section (1) of section 61 of the Punjab Municipal Act, 1911 (hereinafter referred to as the Act), as it exists now, empowers the Municipal Committee to impose a tax payable by the owners of the buildings and lands not exceeding certain annual rental value. This was 12-1/2 per cent originally but was raised to 15 per cent by a subsequent amendment by the State of Haryana. In addition to this tax, there are other specified taxes which can be imposed under sub-section (1) of section 61. Sub-section (2) of this section then gave a general power as follows :-

(3.) In the present case, the water-tax is purported to have been imposed under sub-section (2) of section 61 of the Act. As provided in the Act, notice was issued calling objections in the following terms :-