MUKAND LIMITED Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) On the bank of Chambal river, near Rawatbhata (District Chittorgarh), Rajasthan Atomic Power Project has been established after acquisition of the land by the Government. Units Nos. 1 and 2 of the said Rajasthan Atomic Power Project were commissioned few years back. Thereafter, the work of Units Nos. 3 and 4 was taken up by the Rajasthan Atomic Power Project. A notification was issued on 23-10-69 in exercise of the powers conferred by Clause (d) of Section 3 of the Atomic Energy Act, 1962 (Act No. 33 of 1962) declaring the area within the limit of 11/2 miles' radius from the reactor-site, situated on the right side of the Rana Pratap Sagar Lake, comprising land bearing Khasra Nos. 13/1, 14/1, 15, 16/1, 17/1 and 37/11 of village Kharil under Patwar Circle Matasar, Panchayat Bhainsrodgarh (Tehsil Begun, District Chittorgarh) to be prohibited area. The petitioners have undertaken contracts for construction of the various projects of the Rajasthan Atomic Power Station and, to fulfil their contractual obligations, they were required to bring in different materials for carrying out the various construction projects. The Gram Panchayat, Badoliya had informed the petitioner-companies that the Gram Panchayat is entitled to charge octroi on the goods brought within the Panchayat Circle for consumption or use therein under Section 64 (1)(f) of the Rajasthan Panchayat Act, 1953 and Rule 102 of the Rajasthan Panchayat (General) Rules. Aggrieved by the communication made and the charge of octroi duty by the Gram Panchayat, Badoliya, the petitioners have approached this Court by way of writ petitions under Article 226 of the Constitution of India challenging the action and jurisdiction of the Gram Panchayat, Badoliya to charge octroi duty.

(2.) The only submission made by learned counsel for the petitioners is, that the area where the Rajasthan Atomic Power Project is being established does not fall within the Panchayat Circle of the Gram Panchayat, Badoliya, having been declared as prohibited area and, therefore, Gram Panchayat, Badoliya has no jurisdiction or authority to charge octroi duty. The contention of learned counsel for the petitioners has been countered by learned counsel appearing for the respondent and they have submitted that simply because the area being declared prohibited area, the area does not cease to be an area of the Panchayat and, therefore, the moment any goods are brought within the Panchayat Circle for consumption or use therein the incidence of tax accrues, and the persons bringing the material within the Panchayat Circle for consumption or use therein are liable for payment of octroi duty.

(3.) The submission of learned counsel for the petitioners is based on the provisions of Ss. 2 (5), 24 and 64 (1)(f) read with Schedule-III of the Rajasthan Panchayat Act, 1953 and S. 3 (d) of the Atomic Energy Act, 1962. Section 64(1)(f) of the Act of 1953 enables the Gram Panchayat to charge octroi duty if the goods are brought within the Panchayat Circle for consumption or use therein. The Panchayat Circle is defined in sub-section (5) of Section 2 of the Act, which means the local area over which the Panchayat exercises jurisdiction. Section 3 (d) of the Atomic Energy Act, 1962 authorises the Central Government to declare any area or premises where work including research, design or development is carried on in respect of the production, treatment, use, application or disposal of atomic energy or of any prescribed substance to be a prohibited area. Section 24 of the Act of 1953 imposes duty on the Panchayat, so far as the panchayat-fund at its disposal allows, to make reasonable provision, within the Panchayat Circle in regard to matters specified in third Schedule. Schedule-III appended to the Act of 1953 provides for variuous fields regarding supply of water, cleaning of public streets, sanitation, preservation and improvement of public health, regulation by licensing of the shops, maintenance and regulation of burning and burial grounds, lay-out and maintenance of play-grounds and public gardens, disposal of unclaimed corpses and unclaimed cattle, construction and maintenance of public latrines, providing medical relief, establishment and maintenance of market, spread of education, establishment and maintenance of theatres for promotion of art and culture, establishment and maintenance of libraries and reading rooms, etc. wherein the panchayat is expected to provide for the money.