Judgment

RAMASWAMI, J.:- The appellant is a partnership firm consisting of two brothers Lala Baburam and Shri Prakash Chandra, carrying on the business of manufacturing Khandsari sugar in the district of Muzaffarnagar. The partnership firm carries on its business through its two units (1) one located in the village Basora and run under the name and style of M/s. Baburam Ashok Kumar and (2) the other located in village Morna and run under the name and style of M/s. Baburam Prakash Chandra, both in the district of Muzaffarnagar. The case of the appellant was that the business of manufacturing Khandsari was seasonal and was carried on at both the places for less than 5 months in a year, i.e., from the month of November to the beginning of April. Under the U.P. District Boards Act No. X of 1922, the District Board of Muzaffarnagar was empowered to levy tax under Sections 108 and 114 in the rural area. Section 114 was to the following effect:

"The power of a board to impose a tax on circumstances and property shall be subject to the following conditions and restrictions namely-

(a) The tax may be imposed on any person residing or carrying on business in the rural area provided that such person has so resided or carried on business for a total period of at least six months in the year under assessment.

(b) The total amount of tax imposed on any person shall not exceed such maximum (if any) as may be prescribed by rule.

.... .... .... .... .... .... .... ...."

Under S. 123 of that Act the matters relating to the assessment and collection of taxes were to be governed by rules framed under Section 172 of that Act. On March 1, 1928, the Government of U.P. issued Notification No. 315/IX-413 notifying the rules for the assessment and collection of a tax on circumstances and property in the rural area of the Muzaffarnagar district. The rules provided, among other matters, that all the activities of an assessee within the district, whether carried on under the same or different name, shall be considered in calculating the total amount to be assessed; and the tax shall be assessed by an Assessing Officer appointed by the District Board, and the list of assessment of the preceding year ending December 31, shall be completed on or before January 20, and shall be submitted to the Board which will return it by February 15 to the Assessing Officer for being revised and thereafter the Assessing Officer shall give notice of a date not less than one month when he will proceed to consider the objection. The assessee may file objections before the date fixed and thereafter the Assessing Officer shall allow the assessee an opportunity to be heard. Rule 16 read with Rule 2 fixed the maximum limit of the total amount of tax assessed on any person not to exceed Rs. 2,000/- in any year, having regard to all the activities of an assessee within the district whether carried on under the same or a different name. In the year 1950 the Constitution of India was promulgated and under cl. 2 of Article 276 the total amount payable in respect of any one person to the district Board, local board or other local authority in the State by way of taxes on professions, trades, callings and employments shall not exceed two hundred and fifty rupees per annum. On August 22, 1958, the U. P. Antarim Zila Parishad Act of 1958 (U. P. Act No. XXII of 1958) passed by the U. P. Legislature received the assent of the Governor and was published in the U. P. Gazette dated August 23, 1958. Clause (3) of Section 1 of the U.P. Antarim Zila Parishad Act, 1958 runs as follows:

"It shall be deemed to have come into force on the 29th day of April, 1958, and shall expire on the 31st day of December, 1959."

But the Amending Act (U. P. Act No. 1 of 1960) received the assent of the Govenor on January 5, 1960 whereby the figure 1960 was substituted in place of 1959 in clause (3) of Section 1 of U. P. Act XXII of 1958. The case of the appellant is that the original Act No. XXII of 1958 had expired on D