LexPRAKASH CHAND MAHESHWARI & ANR. versus ZILA PARISHAD, MUZAFFARNAGAR & ORS.
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761
PRAKASH CHAND MAHESHWARI & ANR.
A
v.
ZILA PARISHAD, MUZAFFARNAGAR & ORS.
May 7, 19n:
[S. M. SIKRI, C. J., G. K. MITTER, C. A. VAIDIALINGAM, A. N. RAY
B
AND P. JAGANMOHAN REDDY, JJ.J
Professions Tax Limitation (Amendment and Validation) Act 1949-
Retrospective validation of levy under U. P. District Boards Act, 1922 con-
tnJYening limit of R•. 50 laid down in Profession Tax Limitation Act XX
of 1941-Validity-Procedure under r. 3 of Rules made under U.P. Dis-
tril:I Boards Act, 1922 whether unworkable under U.P. Kshetra Samithis
0
<llld 'Lila Parishads Adhiniyam 33 of 1961-Time limit for assessment pro-
-Wre under rr. 4 and S of Rules under 1922 Act whether mandatory-
Rulu whether not properly framed-Kar Adhikari appointed without cen·
llllling Public Service Commission as required by s. 43 of U.P. Kshetra
Samithi and Zila Parishads Adhiniyam Act 1961-Mere sending of papers
to Commission after making of appointment not sufficient compliance with
s. 43-Appointment is temporary and good only for two years-Assessment
made after two years invalid.
D
Tax on circumstances and property we levied in 1928 on persons resid-
ing in or carrying on business in the rural areas of District Muzaffarnagar
under the provisions of !he U.P. District Boards Ac~ 1922. In 1942, the
Central Legislature passed the Professions Tax Limitation Act which laid
down that no tax on circumstances and property levied by a local authority
should exceed Rs. 50 except in cases where it was already being levied.
The Act -was passed in accordance with the provisions of s. 142-A of the
Government of India Act, l935.
Jn 1948 s. 108 of the U.P. District
Boards Act was amended to provide that a board may continue a tax al-
ready imposed on persons assessed according to their circumstances and
pioperty, and that the tax so imposed shall not be abolished or altered
without the previous sanctjon of the State Government. In order to get
over the d<Cision of the High Court of Allahabad in District Board of
Farrukhabad v. Prag Dutt, (I.L.R. 1949 All. 26) the Central Legislature
passed the Professions Tax Limitation (Amendment and Validation) Act 61
of 1949. This Act retrospectively exempted the circumstances and property
tu levieci by local bodies in U.P. from the upper limit of Rs. 50 laid down
by the 1941 Act On August 22, 1958 the U.P. Antarim Zila Parishad Act
22 of 1958 was passed by the U.P. Legislature. The said Act was extended
to December 31, 1962 by successive legislation. The U.P. Kshetra Samithis
and Zila Parishads Adhiniyam 33 of 1961 repealed the United Provinces
District Board Act 1922 in relation to a district as from the date on which
tho establishment of Kshetra Samithis under the new Act was completed
and as from the date on which the U.P. Antarim Zila Parisbild Act was
to stand repealed in relation to that district.
Kshetra Samithis and Zila
Parishad were constituted in the District of Muzaffarnagar -under the Act.
The circumstances and property tax levied under the repealed Acts was
continued under the new Acl The taxing officer called Kar Adhikari was
to be appointed according to the procedure laid down in s. 43 of the new
Act. The appellants who carried on 'khandsari' and 'gur' bnsiness in the
rural area of Muz.atfarnagar District were, for the year 1967-68, assessed
to ~y a sum of Rs. 2,000 as circumstances and property tax. They filed
a writ petition under Art. 32 of the Constitution challenging the levy on
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SUPRBMB CO)JRT REPORTS
[1971] SUPP. s.c.R.
1he following grounds; (i) Central Act LXI of 1949 w&s beyond the legis-
lative competence of the Federal Legislature because the power o{ tile
Federal Legislature having been once exercised to reduce the imposts over
Rs. SO per annum to tbat sum it was exhausted and could not be exerci9ed
a second time; (ii) Even assuming the said Act was within the competence-
of the legislature, as a result of tbe amendment of s.
108 of the U.P.
Districts Boards Act in 1948 tbe board could only continue to levy tb•
tax which was lawfully being imposed in 1948 on persons assessed accord-
ina to their circumstances and properties in accordance with s. 114 and
inasmuch as the tax bad been reduced to Rs. 50 by the Central Act of
1941 tbe validation under tbe Professions Tax Limitation (Amendment and
Validation) Act, 1949 would not serve to raise the limit of the tax to be-
yond Rs. 50 per annum, (iii) under r. ·3 framExcerpt shown. Read the full judgment & AI analysis in Lexace.