JUDGMENT

PATHAK, CJI.:— By these writ petitions and transferred cases the petitioners challenge the validity of the levy of cess in respect of tea estates under the West Bengal Rural Employment and Production Act, 1976.

2. The West Bengal Rural Employment and Production Act, 1976 (shortly referred to as the "West Bengal Act") is intended to provide the additional resources for the promotion of employment in rural areas and for implementing rural production programmes. The additional resources are sought to be raised from two sources, a surcharge on land revenue under S. 3 of the Act and a rural employment cess under S. 4 of the Act. We are concerned here with the levy of the rural employment cess.

3. Originally S. 4 of the West Bengal Act provided as follows:

"4.(1) On and from the, commencement of this Act, all immovable properties on which road and public work cesses are assessed according to the provisions of the Cess Act. 1880, shall be liable to the payment of rural employment cess :

Provided that no raiyat who is exempted from paying revenue in respect of his holding under clause (a) of sub-section (1) of section, 23B of the West Bengal Land Reforms Act 1955, shall be liable to pay rural employment cess.

(2) The rural employment cess shall be levied annually -

(a) in respect of lands, at the rate of six paise on each rupee of development value thereof;

(b) in respect of coal mines, at the rate of fifty paise on each tonne of coal on the annual despatches therefrom;

(c) in respect of mines other than coal mines and quarries, at the rate of six paise on each rupee of annual net profits thereof."

4. The West Bengal Taxation Laws (Amendment) Act, 1981 amended the West Bengal Act and by S. 7(b) thereof amendments were made in S. 4(2) of the West Bengal Act with effect from 1 April, 1981. As a result, as from that date, S. 4(2) in so far as it is material read as follows :-

"4(2). The rural employment cess shall be levied annually -

(a) in respect of lands, other than a tea estate, at the rate of six paise on each rupee of development value thereof;

(aa) in respect of a tea estate at such rate, exceeding rupees six on each kilogram of tea on the despatches from such tea estate of tea grown therein, as the State Government may, by notification in the Official Gazette, fix in this behalf;

Provided that in calculating the despatches of tea for the purpose of levy of rural employment cess, such despatches for sale made at such tea auction centres as may be recognised by the State Government by notification in the Official Gazette shall be excluded :

Provided further that the State Government may fix different rates on despatches of different classes of tea.

Explanation - For the purpose of this section, "tea" means the plant Camellia Sinensis (L) O. Kuntze as well as all varieties of the product known commercially as tea made from the leaves of the plant Camellia Sinensis (L) 0. Kuntze, including green tea and green tea leaves, processed or unprocessed;"

5. Section 4 was also amended further by the insertion of sub-s. (4) which provided :-

"(4) The State Government. may, if it considers necessary so to do, by notification in the Official Gazette, exempt such categories of despatches or such percentage of despatches from the liability to pay the whole or any part of the rural employment cess, or reduce the rate of the rural employment cess payable thereon, under Clause (aa) of subsection (2), on such terms and conditions as may be specified in the notification:

Provided that the State Government may, at any time, add to, amend, vary or rescind any such notification."

Thereafter the West Bengal Taxation Laws (Amendment) Act, 1982 was enacted with effect from I October, 1982. S. 4(2) of the West Bengal Act was amended and under Clause (aa) thereof the first proviso was omitted.

6. Pursuant to the amendments in the West Bengal Act in 1981 and 1982, various notifications were issued by the State Government, which for our purpose broadly cover three differ