Judgment

Arijit Pasayat, J.—Appellant calls in question legality of the judgment rendered by a Division Bench of the Madhya Pradesh High Court at Jabalpur upsetting judgment of a learned Single Judge who held that the Municipal Council, Kymore, presently known as Kymore Nagar Panchayat (hereinafter referred to as the ‘Municipal Council’) is bound by the Government Order dated 15.12.1995 issued by the State Government under the Madhya Pradesh Municipalities Act, 1961 (in short the ‘Act’). Learned Single Judge was of the view that the power vests with the State Government who issued the said Government Order and there is no justification on the part of the Municipal Council in making the impugned demands on the basis of rates fixed by it. It was consequentially declared that the present appellant was not liable to pay the differential sum and was only required to pay tax at the rate of 0.20% as fixed by the State Government.

2. The factual position which is almost undisputed is essentially as follows:

The appellant, a company registered under the Companies Act, 1956 (in short the ‘Companies Act’) has its head office at Bombay and is engaged in manufacture of various kinds of cement. It