CHHAJJU RAM BABU RAM Vs. STATE OF PUNJAB

JUDGEMENT

(1.) In this writ petition the petitioners, who are brick kiln owners, have challenged the vires of Sections 65, 66 and 67 of the Punjab Panchayat Samitis and Zila Parishads Act, 1961 (hereinafter referred to as the Act) and the notification dated 11th November, 1971 (Annexure P-1 to the writ petition), imposing tax at Rs. 200/- per annum for each Bhatta running within the jurisdiction of the Panchayat Samiti, Pathankot.

(2.) The ground taken in the writ petition challenging the said Notification is, that there are neither any guiding principle nor has any maximum limit, to which the Panchayat Samiti can go, been prescribed and, therefore, it suffers from excessive delegation of legislative functions. M/s. Devi Das Gopal Krishnan etc. V. State of Punjab and others, 1967 AIR(SC) 1895 was cited in support of this proposition, wherein the principles of excessive delegation have been discussed. However, the matter is not res integra. A Division Bench of this Court has considered the relevant provisions of the Act in a case M/s. Santosh Kumar Chander Shekhar V. The State of Punjab and others,1977 PunLR 353 and relying upon the Supreme Court authorities The Municipal Corporation of Delhi V. Birla Cotton, Spinning and Weaving Mills, Delhi and another, 1968 AIR(SC) 1232 andGulab Chand Bapalal Modi V. Municipal Corporation of the City of Ahmedabad and another, 1971 AIR(SC) 2100 it has been held that the mere fact that an Act delegating taxing power refrains from providing a maximum rate does not by itself render the delegation invalid. In this very judgment, the learned Judges have noticed the scheme of the Act and its various provisions in para 7 thereof. It is not necessary for the State Legislature to quantify the maximum or the minimum limit of tax to be imposed by a Panchayat Samiti in the Act itself. Nor can it be said with any justification that the Legislature by introducing the State Government in the picture in Section 66 of the Act has conferred any authority or arbitrary powers on it. The measure regarding the imposition of a tax has to emanate from the Panchayat Samiti itself. The exercise of this power by the Panchayat Samiti is subject to the general direction and the control of the Government which implies that only such taxes would be allowed to be levied as are reasonable and proper and not unduly burdensome. Thus the said authority in M/s. Santosh Kumar Chander Shekhar's case fully covers the case. For these reasons we hold that the Act does not suffer from the vice of excessive delegation merely because the rate of tax has not been quantified therein.

(3.) For the reasons recorded above, this writ petition fails and is dismissed with costs.