LexZILA PARISHAD MORADABAD versus NUNDAN SUGAR MILLS, AMROHA
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A B ZILA PARISHAD MORADABAD 11. NUNDAN SUGAR MILLS, AMROHA July 18, 1967 [J.C. SHAH, S. M. SIKRI AND V. RAMASWAMI, JJ.J U.P. District Boards Act (X of 1928)-ss. 115-118, 119-12()-Dia- trict Board enhancing ma;rimum limit of circumstances and propert11 tax by resolution-State Govemment notifyinu amendment of rules to incorporate new limits-Whether tax can be imposed without further resolution under s. 119 and notification under s. 120. In July 1925 it was nDtified under s. 120(2) of the U. P. District C Boards Act, 1922 that the District Board of Moradabad in exercise of powers conferred by s. 108(2) of the Act had imposed a tax with effect from September 1, 1925, on the residents of the District accord- ing to their circumstances and property at the rate of 4 pice per rupee on the total taxable income, subject to a maximum of Rs. 200. In May 1927 the District Board passed a resolution increasing the maximum from Rs. 200 to Rs. 500 and thereafter the State Govern- ment issued a notification in Janµary 1928, amending the rl!les for D the assessment and collection of tax so as to increase the maximum to Rs. 500. In August 1931, the Board passed another resolution in- creasing the maximum further to Rs. 2,000 and the State Gov~rnment issued a notification in March 1932 further amending the rul~s so as to incorporate .the new maximum. No further action was taken by the District Board to enforce these amendments of the rules. Upon a writ filed by the respondents under Act, 226 of the Cons- E titution, the High Court directed the District Board, Moradabad, not to levy upon the respondent a tax in excess of Rs. 200 per year on the ground that no special resolution of the Board had been passed n,or a notification issued by the State• under ss. 119 and 120 respectively of the Act imposing the tax with revised maximum limits. In appeal to the Supreme Court it was contended on behalf of the appellant that when the procedure laid down. in ss. 115 to F 118 had been followed whereby the amendments had been approved by resolutions and notified, it was not necessary that there shou.Jd be a further resolution and notification under s. 119 and s. 120 res- pectively. G Held: The tax with the revised maximum limits introduced in 1923 and ?932 could not be imposed without a resolution under s. 119 and a notification under s. 120. [5B] The object of SS, 119 and 120 is to fix the date from which the tax can be imposed. If no date is fixed, no tax can be imposed. Once the Board passes a special resolution under s. 119. it has to go to the Government under s. !20, and then the Government notifies the imposition of tax from the appointed date. It is then that the noti. ft cation becomes conclusiive proof Of the fact that the tax has been imposed in accordance with the provisions of this Act. Suh~rlausc B (3) of s. 120 clearly proceeds on the basis that the imposition of tax takes place on a notification is!iued under s. 120 and not on the issue of a notification under s. 118. [4G--5A] Raza Buland Sugar Co. Ltd. v. Municipal Board, Rampur, [19651 1 S.C.R. 970; referred to. L1P(N)ISCI 2 /JUPREME •COURT REPORTs [1968] l s.c.11. CIVIL APPELLATE JuRJSDICTION: Civil Appeal No. 596 of A 1966. Appeal by specia.l leave from the judgment and order dated January 27, 1964 of the Allahabad High Court in Special Appeal No. 270 of 1958. S. T. Desai and C. P. Lal, for the appellant. C. B. Agarwa/a and J. P. Agarwal, for the respondent. The Judgment of the Court was delivered by B Sikri, .J.-This appeal by special leave is directed against the judgment of the High Court of A.llahabad accepting a petition under Art. 226 of the Constitution and directing the District Board, Moradabad, not to levy upon Mis Nundan Sugar Mills, 0 Amroha, respondent before us, circumstances and property tax for any one year exceeding the sum of Rs. 200. The High Court held that no special resolution of the Board had been passed, nor had a notification been made imposing the tax, under s. 119 ands. 120, respectively, of the United Provinces District Boards Act, 1922 (U. P. Act of 1922)-hereinafter referred to as the Act. The relevant facts out of which this appeal arises are these : On July 28, 1925, it was notified under sub-s. (2) of s. 120 of the Act that the District Board of Moradabad, in exercise of the powers conferred by s. 108, sub-s. (2), of the Act has imposed the following tax, with effect from S
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