BINOY BHUSAN Vs. STATE OF BIHAR

JUDGEMENT

(1.) 1. In this case the petitioners have obtained a rule calling upon the opposite parties to show cause why a writ in the nature of mandamus should not be issued restraining them from imposing or collecting a holding tax levied by a resolution of the Mihijam Notified Area Committee. Cause has been shown by the learned Government Advocate on behalf of the opposite parties.

(2.) THE petitioners are residents of three villages, Mihijam, Kanungui and Anui which have been formed into a Notified Area Committee known as the "Mihijam Notified Area Committee' set up by a notification issued by the Government of Bihar. THE draft notification was issued on 4-7-1950 inviting objections or suggestions from the persons likely to be affected. On 5-1-1951 the Government of Bihar acting in exercise of the powers under Sections 383 and 389 of the Bihar & Orissa Municipal Act applied to the Notified Area of Mihijam various provisions of the Act mentioned in the schedule to the notification. THEre was another notification dated 7-9-1951 wherein the Government sanctioned the imposition of holding tax by the Mihijam Notified Area Committee. This notification was issued under Section 82 of the Bihar and Orissa Municipal Act. THE case of the petitioners is that the imposition of the tax is illegal, firstly, on the ground that the provisions of Sections 388, 389 and 390 are beyond the legislative competence of the State Legislature, and, secondly, because the power of taxation is vested in Section 389(b) with Local Government and the Notified Area Committee has no authority to impose the tax. THE petitioners therefore pray that a writ in the nature of mandamus should be issued prohibiting the opposite parties from imposing or realising any tax within the Notified Area,