GH HASSAN Vs. STATE

JUDGEMENT

(1.) THIS is a petition under section 103 of the Constitution of Jammu and Kashmir read with Article 32 (2 -A) of the Constitution of India as applied to the State of Jammu and Kashmir for issue of a writ restraining the respondents from recovering from the petitioner the tax assessed by respondent No.2 vide his order dated June 15, 1966, under the Jammu and Kashmir Urban Immovable Property Tax Act, 1962, and up -held in appeal by the Deputy Sales Tax Commissioner, Appeals, in respect of a building in Goni Khan, Srinagar, on the ground that the said Act is ultra vires of the powers of the State Legislature in view of the recommendations of the Second Finance Commission constituted in the year 1953 -54.

(2.) MR . S. T. Hussain appearing for the petitioner has contended that the State Legislatures are not competent to levy tax on lands and buildings under entry No. 49 of List II of Schedule VII of the Constitution of India except for the exclusive purpose and benefit of the local bodies and as the State Legislature has not so reserved the tax, it has acted beyond its powers. Dwelling upon the legislative history of entry 49, Mr. T. Hussain has urged that the power conferred by the aforesaid entry on the States to tax lands and buildings within their jurisdiction is subject to the constitutional limitation that the tax is to be utilized by or for the local authority.

(3.) FOR a proper appreciation of the point raised by Mr. T, Hussain it will be necessary to refer to Articles 280 and 281 of the Constitution of India, which run as under: -