THE TOWN MUNICIPAL COMMITTEE, AMRAVATI versus RAMCHANDRA VASUDEO CHIMOTE AND ANOTHER

Citation: [1964] 6 S.C.R. 947 · Decided: 03-03-1964 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Dismissed

Cited by 4 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

6 S.C.R. 
SUPREME COURT REPORTS 
947 
without taking into consideration the value of non-agricul-
tural improvements made after that date, must be regarded 
as invalid. 
We are not called upon to express any opinion on the 
question whether the power reserved under s. 17 of the Land 
Acquisition Act as amended by s. 2 of Madras Act XI of 
. 1953 to take possession of lands under the emergency clause 
for the purpose of working lignite mines in the areas to 
which the Madras Lignite (Acquisition of Land) Act, 1953, 
extends is invalid. 
No argument has been advanced by 
either side before us on this question. 
Nor was the High 
Court called upon to consider the validity of that provision. 
The appeals therefore fail and are dismissed. 
The 
respondents in this group of appeals, except in appeal No. 11 
of 1963. have not appeared in this Court. 
Therefore in 
appeal No. I 1 of 1963 alone, the State of Madras will pay 
the costs of the respondent. There will be no order as to 
costs in other appeals. 
Appeals dismissed. 
THE TOWN MUNICIPAL COMMITTEE, AMRAVATI 
I'. 
RAMCHANDRA VASUDEO CHIMOTE AND 
ANOTHER 
(P. B. GAJENDRAGADICAR, C.J., K. N. WANCHOO, K. c. DAS 
GUPTA, J.C. SHAH AND N. RAJAGOPALA AYYANGAR, JJ.) 
Terminal Tax-Imposition of ttrminal tax by Municipality on silver ond 
•ilvtr i•w•ll•ry, gold and told i•w•ll•ry and pr.cioiu llon.. In 
1960-Th•" tax" not l<vi•d b•for. 
by Municipality-Wh•lhtr 
1aved by Art. 277 of the COMtitution-''Continut to bt levied and 
to b• applitd to th• 111m• purposd'-Mtaning of--C.P. and Btrar 
Municipalititt Act, 1922, •· 55-Gov•rnmtnt of InJia Act, 1935, 1. 
143(2)--ColUlitutlon of India, Art. 277. 
' 
196# 
St•l1 of Madra3 
"· 
D. Nam°'iwrfo 
Mudaliar 
Shah J. 
196# 
March 3 
IfM 
Town Mu..tn,.I 
COlflMltltt' 
v. 
. 
a-cfNllllN 
SUPREME COURT REPORTS 
A terminal tu oa 1ood1 imported by road or rail w11 imposed by 
the AmraTati Municipality by virtue of a notification dated August 10, 
1916. This notification exempted silver, bullion and coins from 
th• 
operation of this tax. When terminal taxes on 1oods imported by rail 
were assigned exclusively lo the Federal Centre under the Government 
of India Act. 1935. the municipality was authorised by s. 143 to con~ 
tinue lo levy the terminal taxeo which were actually levied before the 
enforcement of the Act. Likewise, the terminal taxes imposed by the 
pre-Constitution notification were allowed to be lnied and collected even 
after the Constitution came into force by virtue of Art. 277 of the 
Constitution. In 1960, the Municipality levied terminal taxes on three 
new items, v;z., sill'er and silver jewellery, gold and' gold jewellery and 
precious stonea. 
In a writ petition filed under Art. 226 of the Constitution, the vali-
dity of the newly imposed terminal tax was challengell by the respondent 
who was carrying on business, within the limits of the Municipality, in 
gold, silYer and precious stones on the ground of legislative incompetence. 
The writ petition was granted by the High CofJrt and the appellant came 
to this court after obtainina a certificate of fitness from the Hiah Court. 
Dismissing . the appeal: 
·Held: The newly imposed terminal taxes on silver and silver jewellery, 
gold and gold jewellery and precious stones had never been imposed 
by the Municipality and hence it could not be said that those were 
"being lawfully levied" by the Municipality and "•pplied to the same 
purposes" before the commencement of the Constitution a! required by 
Art. 277 of the Constitution. Ari. 277 was not intended to confer an 
unlimited legislative power to impose what in effect were new taxes, 
though of the same type or nature as existed before the Constitution. 
Rama Krishna Ramanath v. The Janpad Sabha, Gandia, f1962] 
Supp. 3 S.C.R. 70 and Chutti/al v. Bagmal and Ba/wantrai, l.L.R. [1956) 
M.B. 339. referred to. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 598 
of 1962. 
Appeal from the judgment and order dated March 18, 
1961 of the Maharashtra High Court (Nagpur Bench) at 
Nagpur in Special Civil Application No. 30 of 1960. 
WITH 
Civil Appeals Nos. 695 and 700 of 1962. 
Appeals from the judgment and orders dated October 
12, 1961 and March 18, 1961 of the Madhya Pradesh High 
Court in Misc. Petitions Nos. 122 of 1961 and 319 of t 960 
, 
respectively, 
' 
6 S.C.R. 
SUPREME COURT REPORTS 
949 
1961 
M. C. Setalvad and S. Shaukat Hussain, for the appellant 
_ 
(in C.A. No. 598/62). 
Terrn 
MunlcitMI 
J 
Committn 
W. S. Barl

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