JUDGMENT

K.N. SAIKIA, J.:—This appeal by special leave is from the Judgment and order dated 3-12-1971 of the Allahabad High Court in Special Appeal No. 289 of 1963 dismissing the appeal and consequently the writ petition.

2. The appellant is a (Pacca Arahatiya) commission agent engaged in the sale and purchase of grains, rice, oil-seeds and jaggery in the town of Chirgaon, District Jhansi.

3. On March 4, 1933, the Government of U. P. published a Notification purported to have been issued under S. 38(1) of the United Provinces Town Areas Act 1914 (Act II of 1914), hereinafter referred to as the Town Areas Act, which read as under:

"No. 690/Xl-158-T. It is hereby notified that the Governor acting with his Ministers, in exercise of the powers conferred by S. 38(1) of the United Provinces Town Areas Act 1914 (II of 1914) is pleased to extend the provisions of S. 298(2)F(d) of the United Provinces Municipalities Act 1916 to the Town Area of Chirgaon in the Jhansi District in the modified form set forth below:

Modified section of the United Provinces Municipalities Act, 1916 (11 of 1916) S. 298(2) F(d) "The Panchayat may make bye-laws for the establishment, regulation and inspection of market and for the proper and cleanly conduct of business therein."

4. Later by S. 4 of the United Provinces Town Area (Amendment) Act, 1934 (U.P.Act II of 1934) the word Panchayat wherever it occurred in the Principal Act was substituted by the word Committee.

5. It may be noted that the Town Area Panchayat was superseded for a period of one year with effect from 20-10-1933 to 19-10-1934 and was revived thereafter.

6. The District Magistrate, Jhansi promulgated a set of bye-laws dated 18-11-1934 for the establishment, regulation and inspection of the market in the Town Area of Chirgaon and for the proper and cleanly conduct of business therein. Under Bye-law (1), sellers and purchasers of the commodities mentioned thereunder were required to pay weighing dues. It said:

"1 (a) Weighing dues shall be charged at the rate of 1/4/6 per cent (eight-/8/- annas per cent from the seller and twelve and a half annas per cent from the purchaser) on the following articles which comes to the Town Area for sale:

Grains, oilseeds, oil cakes, cotton, vegetables for wholesale, Dhania for wholesale and gur etc.

(b) Weighing dues on Ghi shall be charged at the rate of /2/6/ two and half annas per maund half from the seller and half from the purchaser.

N.B. In recovery of weighing dues fraction of a pie shall be omitted and more the figure adjusted to the nearest price.

(c) The purchaser shall be responsible for the full amount of weighing dues. He shall deduct the sellers share from the price.

(d) No weighing dues shall be charged on any article imported by rail nor on rice, salt, gur and sugar imported from Jhansi and Moth by rail or road.

(e) On refusal to pay the weighing dues it shall be recoverable as arrears of tax on circumstances and property."

7. Since the appellant was a dealer in some of these commodities, he was served witha notice dated 27-7-1962 demandingRs. 1892.26 as weighing dues for the period from 1-5-1962 to 30-6-1962.

8. The appellant challenged the aforesaid notice filing a writ petition on 18-8-1962 in the Allahabad High Court being Civil Misc. Writ Petition No. 2400 of 1962. A learned single Judge by his order dated 29-4-1963, dismissed the same taking the view that the demand made by the respondent was purely a measure of taxation. The appellant filed therefrom Special Appeal No. 289 of 1963, which was dismissed by the impugned judgment and order.

9. Before the High Court the appellant contended, inter alia, that the Bye-laws were invalid as the Town Area Committee, shortly the TAC, did not frame them; that the TAC had no power to impose such tax; that the U. P. Town Areas (Amendment) Act 1952 did not empower the TAC to levy and collect weighing dues; that the weighing dues were discriminatory because of the exemptions; that the weighing dues were not a tax but