LexRADHAKISAN RATHI versus ADDITIONAL COLLECTOR, DURG AND ORS.
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A RADHAKISAN RATH! v. ADDITIONAL COLLECTOR, DURG AND ORS. APRIL 19, 1995 B (P.B. SAWANT AND S.B. MAJMUDAR, JJ.J Madhya Pradesh Panchayats Act, 1962 : Ss. 103, 104, 130, 157- Janapada P"1l!chayaf,-/'ower to impose theatre tax-Cinema theatres situated within Munidipalities or Municipal Corporations as also within territorial juris- C diction of Janapada Panchayats-Held, Janapada Panchayats are entitled to impose theatre tax on such theatres and there will be no double taxation involved in such a case. The appellants, owners of cinema theatres, filed writ petitions before the High Court challenging the imposition of theatre tax by the concerned D Janapada Panchayats on the ground that they were already paying theatre tax under the Madhya Pradesh Municipalities Act, 1961 or the Madhya Pradesh Municipal Corporation Act, 1956. Their case was that once cinema taxes were imposed on cinema theatres by concerned local authori.ties, they could not be taxed by Janapada Panchayats by way of E theatre tax. The High Court dismissed the writ petition. Aggri.eved, tho theatre owners filed the appeals by special leave It was contended for the appellants that the Madhya Pradesh Panchayats Act, 1962 was concerned with only rural areas and theatres situated in urban areas like Municipal Council or the Corporation limits F could not be covered by the tax net available under the Panchayats Act "- Dismissing the appeals, this Court HELD : 1. A cinema theatre situated within the territorial limits of local municipality or a corporation can be taxed by the concerned G municipality In exercise of Its powers under the relevant Municipal Act. But If the same theatre is also situated within a block duly constituted under the Panchayats Act it would fall within the territori.al limits of the concerned Janapada Panchayat constituted for that block as laid down by Section 103 read with Section 104 or the Madhya Pradesh Panchayats Act H 1962 and the concerned Janapada Panchayat would obviously be entitled 510 \ • RADHAKJSAN RATill v. ADDL. COLLECTOR DURG . 511 to invoke Its taxation powers under Section 157 for the area within its A jurisdiction and if a theatre is situated within that area then obviously Section 157 would get attracted for imposing the twin types of taxes mentioned by Section 157 which are permissible to be imposed by the Janapada Panchayat. (516-G, H, 517-A, BJ There is no express ouster of taxing power of the Janapada B Panchayat for any area falling within Its block where any local authority is discharging its functions under its own Act. It is well settled that the same subject matter can be covered by taxation nets imposed by different competent taxing authorities and there will be no double taxation involved in such a case. (519-B, 517-8) C Sri Krishna Das v. Town Area Committee, Chiragaon, (1990) 3 SCC 645, relied on. 2.1. Though the preamble of the Panchayats Act refers to rural areas for which the Act is enacted, the term 'rural area' is nowhere defined In the D Act. It Is not a term of art. It Is for the State Government In exercise of Its power under Section 103 of the Actto divide a district into blocks. Once that is done as per Section 104(1) there shall be Janapada Pancbayat for every block, having jurisdiction over the block. The theatres belonging to all the appellants are situated within the blocks falling within the territorialjuris- E diction of the concerned Janapada Pancbayats. It Is precisely for that reason that the Janapada Pancbayats have Imposed theatre tax on these theatres situated within their jurisdiction as per Section 157 (b) of the Act. It is also necessary to keep In view that none of the appellants have chal- lenged the formation of blocks as made by the State Government by Issuing notifications under Section 103 of the Act. (518-E. FJ F 2.2. All the taxes levied by Janapada Pancbayat form part or Janapada Panchayat Fund which has to be utilised for discharging the statutory functions or Janapada Panchayat as laid down by Section 130 which shows that Janapada Panchayat can carry out Its socio-economic functions In any part of the block within Its jurisdiction and that way even G Includes local areas of municipalities falling within the block. A municipality can consist .of area which are within the revenue limits of district, which In tum mlly get divided Into blocks for the purpose of Pancbayats Act by notification Issued by
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