Judgement

SIKRI, J. : These two appeals involve the same point and can be conveniently disposed of by one common judgment. The relevant facts may be given from one appeal only.

2. The respondents, Manilal Manekji Pvt. Ltd., filed a petition under Arts. 226 and 227 of the Constitution in the High Court of Judicature at Bombay, Nagpur Bench, praying that certain demands made by the Municipality of Akot be quashed and that the Municipality be ordered to refund the advance deposit which the respondent had made. These demands and advance deposits were in respect of a tax known popularly as the gin tax and press tax levied by the Municipality of Akot. In brief, the case of the respondent was that in view of Art. 276 of the Constitution, the notifications under which the tax was imposed could not be enforced except to the extent provided under Art. 276 (2) of the Constitution. The case of the Municipal Committee, in brief, was that the notifications were in force immediately before the commencement of the Constitution and, therefore, were not hit by Art. 276 (2).

3. It is now necessary to set out the history of the notifications and the various municipal laws which were made applicable to the Municipal Committee, Akot, form time to time. It appears that the Municipal Committee, Akot, was constituted under the Berar Municipal Law, 1886, and under S. 41 of the Berar Municipal Law, 1886, the Committee was empowered to impose certain taxes. It may be mentioned that the Berar Municipal Law, 1886, was promulgated by Notification No. 3938-1, dated November 5, 1886, by the Viceroy and Governor-General in Council. Berar, at the relevant time, was not part of the British India. The Municipal Committee, Akot, issued Notification No. 98, dated March 14, 1899, regarding levy of Profession Tax. The relevant part of the notification reads as follows :-

"With reference to S. 44, Cl. (9) of the Berar Municipal Law, 1886, it is hereby notified that the Municipal Committee of Akot has, with the sanction of the Resident, directed the imposition with effect form the 1st April 1899, of a tax under S. 41 (1) A (b) of the law, on professions and trades practiced in that Municipality subject to the following rule:-

(1) The tax shall, subject to the following provision, be assessable on every person who practices any profession or art or any trade in the Akot Municipality the whole or any part of whose income derived from any sources other than agriculture is not less than Rs. 100 per annum, at the rate of one and a quarter per cent on the taxable portion of his estimated income derived from any such source provided that,

(i) No person or firm shall be assessed at a sum exceeding Rs. 500 per annum or less than eight .........................." annas

4. Another notification was issued on July 13, 1908, in the following terms :-

"No. 1063. -With reference to S. 44, sub-ss. (7) and (8) of the Berar Municipal Law, 1886, it is hereby notified that the Municipal Committee of Akot, in Akola district, has with the sanction of the Chief Commissioner, directed the imposition with effect from 1st August 1908 of a tax on the Ginning and Pressing of Cotton under Section 41 (1) (A) (b) of the said law to be levied from all persons carrying on within the limit of the Akot Municipality, the trade of ginning cotton and pressing the same into bales by means of steam or mechanical process, at the following rates :-

(1) For each boja of ten maunds ginned 8 pies.

(2) For each bale of fourteen maunds pressed 10 pies.

The tax is payable in one instalment on the first of August each year."

5. On January 22, 1924, the following notification was issued by the Governor-General in Council:-

"No. 58-1.- In exercise of the powers conferred by the Indian (Foreign Jurisdiction) Order in Council, 1902 and of all other powers enabling him in that behalf, the Governor-General in Council is pleased to direct that the following further amendments shall be made in the First Schedule to the Notification of