The proviso to Clause 1 of Article 243-Q does not apply in this case, and the petitioners have an alternative and efficacious remedy to challenge the property tax bill by filing an appeal under the provisions of the Municipalities Act.

JUDGMENT - B.H. MARLAPALLE, J.:---Heard Mr. Arvind Bobde, learned Senior Counsel and Mr. R.B. Raguwanshi, learned Counsel for the petitioners, Mrs. A.S. Rasal and Mr. K.B. Choudhary, learned AGP for the State, Mr. Naresh Patil and Mr. Sanyal, learned Counsel for the Jalgaon Municipal Council and the Maharashtra Industrial Development Corporation, (M.I.D.C. for short) respectively.

2. Rule. Rule taken up for final hearing forthwith.

3. Both these petitions raise common questions of law and hence, they are being disposed of by a common judgment.

4. The petitioner establishments claim to the Industrial Units located in the M.I.D.C. area, Jalgaon, represented through their Association/Charitable Trust. They claim that :-

(a) in view of the provisions of Articles 243-Q and 243-ZF of the Constitution of India, there has to be a separate industrial township and the industrial area cannot be a part of the Municipal area;

(b) the Municipal Council has no authority in law to levy property tax on these industrial units and such taxes can be levied only by the M.I.D.C.;

(c) there cannot be double taxation in the eyes of law and only one agency i.e. M.I.D.C. is entitled to levy taxes;

(d) if regards be had to the provisions of section 341-F an 341M of the Maharashtra Municipalities, Nagar Panchayats and Industrial Townships Act (Municipalities Act for short) and section 17 of the Maharashtra Industrial Development Act (M.I.D. Act for short), the Municipality cannot levy any taxes on the petitioner- units; and

(e) the notification dated 11-9-1987 issued under the Municipalities Act extending the boundaries of the Jalgaon Municipal Council is illegal and ultra vires the provisions of the Constitution as well as section 64 of the M.I.D. Act.

5. It would be desirable to reproduce the prayers in both the writ petitions:-

WRIT PETITION NO. 5344/1999

"(b) By appropriate writ, order or direction, the respondents Nos. 3 to 5 may please be directed to provide basic amenities in Sector "M" of M.I.D.C. Jalgaon, as contemplated under section 17 of the Maharashtra Industrial Development Act, 1961 r/w 2-C of the lease agreement, and to collect necessary charges thereafter.

(c) By appropriate writ, order or direction, the respondents Nos. 1 and 2 may please be directed to establish Industrial Township for Jalgaon M.I.D.C. Area.

(d) By appropriate writ, order or direction, it may please be declared that the respondent No. 7 Jalgaon Municipal Council has no authority to levy and collect any taxes or service charges from the Unit Holders of the petitioner trust."

WRIT PETITION NO. 1099/2000

"(B) By appropriate writ, order or direction this Hon'ble Court please be declared that the action of respondent No. 7 in Extending the boundaries of Jalgaon Municipal Council over the M.I.D.C. area Jalgaon and other consequential actions are ultra vires, to the provisions of M.I.D. Act, 1961, bad in law unconstitutional and also may please be declared that the action of respondent No. 5 in respect of handing over the M.I.D.C. area in respect of maintenance be declared ultra vires to the section 64 of the M.I.D. Act.

(C) By appropriate writ, order or direction to the respondents herein that unless until the M.I.D.C. Jalgaon is declared as a Industrial Township in Official Gazette it be declared that Jalgaon M.I.D.C. area is governed by M.I.D. Act."

6. The Jalgaon Municipal Council as well as the M.I.D.C. have filed affidavit in reply and opposed the petitions. The M.I.D.C has contended that it is not levying any taxes on the petitioner-Units and it is only collecting fees/charges for the water supply and it is the Municipal Council alone which has the authority in law to levy property taxes as contemplated under section 105 of the Municipalities Act. The Jalgaon Municipal Council has submitted that as soon as that notification extending the boundaries of the Jalgaon Municipal Council was issued by the State Government on 11-9-1987, it has started levying property tax on the petitione

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