Judgment

RAY, C. J. :- These appeals are by certificate from the judgment dated 17 May, 1968 of the Full Bench of the High Court of Punjab and Haryana.

2. The appellants in writ petitions in the High Court challenged the legality of notices issued by the Executive Authority. Ballabgarh Panchayat Samiti claiming Rs. 200/- on account of profession tax for the year 1963-64. The notice was issued under Section 76 of the Panchayat Samitis and Zila Parishads Act, 1961 referred to as the 1961 Act.

3. The appellants contended that the claim under Sectiion 76 of 1961 Act was in violation of Article 276 of the Constitution because a similar professional tax on a graded scale subject to a maximum limit of Rupees 250/- per annum had been and was being collected by the State of Haryana.

4. The Full Bench of the High Court upheld the contention of the respondents that the recoveries can be made by each one of the authorities mentioned in Article 276 of the Constitution to a maximum sum of Rs. 250/- per annum.

5. The power of the State to levy tax is derived from Entry 60 of List II in the Seventh Schedule of the Constitution. The Entry speaks of taxes on professions, trades, callings and employments. The State legislature is, therefore, competent to legislate and levy taxes on professions, trades and employments. The State legislature may also by law confer a similar authority on a Municipality, District Board, Local Board or other local authority.

6. The appellants contended that the maximum limit of Rs. 250/- mentioned in Article 276 applies to the totality of the tax recovered by all the authorities mentioned in the Article taken together. It was said that each authority could not levy tax upto a limit of Rupees 250/-. It was said that the opening and the concluding portions of Article 276(2) should be construed conjunctively to represent the total amount payable in respect of any one person to the authorities enumerated in the Article by way of taxes on professions, trades, callings and employments exceeding Rs. 250/- per annum.

7. The Punjab Professions, Trades, Callings and Employment Taxation Act, 1956 referred to as the 1956 Act by Section 3 imposed liability on persons who carried on trade or who followed profession or calling or who was in employment to pay tax in respect of such profession, trade, calling or employment at rates specified in the Schedule. Income below Rs. 6000/- was exempted from tax. Income between Rs. 6000/- and Rupees 8500/- was subjected to a tax of Rupees 120/- per annum. The maximum sum of Rs. 250/- per annum was levied on income exceeding Rupees 25000/-. The appellants were paying Rs. 250/- per annum to the State by way of professional tax. Under Section 5 of the Punjab Temporary Taxation Act, 1962 the Schedule to the 1956 Act was altered. Income between Rs. 1800/- to Rs. 3000/- was subjected to a tax of Rs. 28/- per annum. Income exceeding Rs. 11,500/- was subjected to a tax of Rs. 250/- per annum. By Punjab Act 6 of 1967 the 1956 Act was repealed. There is now no professional tax so far as the reorganised State of Punjab is concerned. The provisions of the 1956 Act however continued to be applicable to the State of Haryana and also to the Union Territory of Chandigarh under the relevant provisions of law.

8. The Panchayat Samiti, Ballabgarh issued a notice on 19 September, 1962 that it intended to levy professional tax at the maximum rate of Rs. 200/- per annum according to the Schedule specified under the 1961 Act. It may stated here that the Districts Boards in the State of Punjab had imposed a tax on professions, trades, callings and employments. The Districts Boards were abolished in consequence of the 1961 Act. There was however a saving provision in the 1961 Act. Section 64 of the 1961 Act provided that a Panchayat Samiti shall be deemed to have imposed tax at the rate at which immediately before the commencement of the Act it was lawfully levied by the District Board of the District in which Panchayat Sami