JUDGMENT

RAY, C.J.I.  :—This appeal by certificate turns on the meaning of the expression "house" as used in Section 89 of the Bombay Village Panchayats Act, 1933 (hereinafter referred to as the Act).

2. The respondent is a village Panchayat constituted under the provisions of the Act. In exercise of powers conferred on it for imposition of taxes on houses under Section 89 of the Act, the respondent by a resolution dated 24 February, 1952 imposed tax on houses within its jurisdiction. The resolution of 24 February, 1952 decided to levy a tax on house at the rate of Annas -/4/- for every Rs. 100. The resolution further decided that the basis for valuation for a room of old house would be Rs. 100/-, for a room of new house Rs. 125/- and for Verandah (Padvi) Rs. 25/-.

3. By another resolution dated 10 August, 1964 the respondent revised the tax on house at the rate of 40 np for Rs. 100/-. The resolution further said that for factories as a concession the tax would be 25 np for Rs. 100/- on capital value.

4. The appellant has factory buildings. The respondent by a notice dated 10 January, 1969 made a demand of taxes on the factory building of the appellant for the years 1967-68 and 1968-69. The respondent charged at the rate of 25 np for Rs. 100/-. The respondent did not charge the appellant at the rate of 40 np for Rs. 100/- which was the increased rate pursuant to the resolution dated 10 August, 1964. The respondent thereafter made a demand in the year 1969-70. The aggregate tax involved in this appeal comes to Rs. 1,34,763/- for the years 1967-68, 1968-69 and 1969-70.

5. The appellant contended that in 1952 when the resolution was passed by the respondent levying taxes on houses the respondent was not empowered to tax on factory buildings. The principal reason advanced by the appellant is that only in 1954 the word "building" was substituted for the word "house" and, therefore, the respondent would have no power to impose taxes on the factory buildings by the resolution in 1952.

6. The other contention on behalf of the appellant is that if the resolution dated 24 February, 1952 be held to be valid levying a tax on factory premises the resolution was replaced by the resolution of 10 August, 1964. Here the contention of the appellant is that the resolution of 1964 is not valid because it was not passed in accordance with the Act and the Rules. The appellant, therefore, contends that if the resolution in 1964 is void the resolution in 1952 would not be operative to support the tax.

7. The provisions contained in Section 89 of the Act are as follows :-

"Levy of taxes and fees by Panchayat :

(1) Every Panchayat shall levy in such manner and at such rates as may be prescribed such of the taxes or fees specified in sub-s. (2) as may be necessary for the proper discharge by the Panchayat of its duties under this Act.

(2) Taxes or fees which are livable by a Panchayat under sub-section (1) are :-

(i) a tax upon the owners or occupiers of houses and lands within the limits of the village;

(ii) a pilgrim tax;

(iii) a tax on fairs and festivals;

(iv) a tax on sales of goods;

(v) Octroi;

(vi) a tax on marriages, adoptions and feasts;

(vii) any other tax which may have been approved by the district local board and sanctioned by Government."

8. Section 89 of the Act was amended by Amendment Act No. 18 of 1939 as follows :-

"(a) For sub-section (1) the following shall be substituted, namely:-

(1) Every Panchayat shall levy a tax upon the owners or occupiers of houses and lands which are not subject to payment of agricultural assessment within the limits of the village in such manner and at such rates as may prescribed. The rules made for the levy of such tax may provide that the payment of such tax may be made either in cash or by the rendering of work and labour."

Sub-section (2) was amended as follows :

"It shall be competent to a Panchayat to levy all or any of the taxes or fees at such rates and in such manner as may be prescribed, namely, clause (i) shall be