1955 Supreme(Raj) 312

Rajasthan High Court
Wanchoo C.J. & Dave, J.
Arjun Singh - Appellant
Versus
Teekchand - Respondents
Civil Writ No. 5 of 1955
Decided On : October 20, 1955

Headnote:(a) Municipalities —Bikaner Municipal Act 1923, sec. 15—Eztension to be before expiry of term.) para 4.(b) Municipalities—Rajasthan Municipal Boards, Extension of terms Act 1952,—Scope-Purposes of Act.(c) Municipalities—Rajasthan Town Municipalities Act, sec. 47—Provisions only directory not mandatory—Non-compliance would not make rules or bye laws invalid. (Para 9)(d) Constitution of India, Part XIII—Plea that taxes heavy—Courts not entitled to adjudicate.(e) Municipalities—Rajasthan Town Municipalities Act. sec. 2(b)—Scope and applicability-Section validates only taxes which State legislature entitled to impose—Export Tax in Karanpur under Bikaner Municipal Act invalid after Bikaner Municipal Act came to end in 1951.(f) Municipalities—Export Tax—Validity(g) Municipalities—Rajasthan Town Municipalities Act, sec. 2(b)—"So far as may be"

       The Act of 1952 would apply to such Boards whose terms had expired before this Act was passed, or whose terms were likely to expire before the electoral rolls were finally ready. Unless therefore the applicant can show that the electoral rolls were finally ready before the terms of the Board expired, extension by the Government under sec. 2 would be for purposes of the Act. (Para 5)

       The would, object of going retrospective extension to the terms of Municipal Boards is to validate every that done during that period. If this effect was not to follow the extension under sec.2 of 1952 Act would have no meaning. (Para 6)

       There is no provision in Part XIII of the constitution enable the court to adjudicate on whether the taxes imposed are heavy and therefore unreasonable. It is therefore not open to the courts to sit in judgment over the Taxing Authorities, and consider whether particular taxes imposed under a law passed under Art. 304 are heavy and therefore unreasonable resulting in undue restraint on trade and commerce. (Para 12)

       After the coming into force of the Constitution, the Legislature of Rajasthan could not impose a tax which was not covered by Lists II and III of the Constitution. If there was any tax, which was not covered by lists II and III of the Constitution, it could only be imposed by the Union Government under item 97 of List I. Therefore, when sec.2(b) of the Act lays down that all taxes imposed shall be deemed, so far as may be, to have been imposed under this Act, it can only refer to such taxes which can be imposed by the State Legislature under its powers in List II and List III. It is true that in sec. 59 of the Act there is provision for imposing any other tax to the nature and object of which the approval of the Government shall have been obtained prior to the selection contemplated in clause (a) of sec. 60. But this residuary clause cannot, authorise the imposition of a tax which it was not within the power of the State legislature to impose at all under Lists II and III. An export tax like the one imposed in 1933 cannot admittedly be imposed under Lists II and III, and can only be imposed under item 97 of List I. Therefore when under sec, 2(b) the Rajasthan Legislature was continuing taxes which were in existence in the municipalities before the Act was passed, it could only continue those taxes which it had the power to impose. If it had no power to impose a tax, like the export tax in dispute, it could hot, by using the words "shall so far as maybe......be deemed......to have been imposed .... under this Act" mean to continue a tax under the Act, which it could not impose at all. Therefore, this tax, which was imposed by the notification of the 29th of July, 1933, cannot be deemed to have been continued by sec. 2(b) of the Act which repealed the Bikaner Municipal Act. Even if this export tax could continue under Art. 277 so long as the Bikaner Act was in force by virtue of Art. 362, it must be deemed to have coma to an end when the Act was passed in 1951. On the passing of the Act in 1951, such a tax, not being within the power of Rajasthan Legislature to impose, could not be and was not continued under sec. 2(b) of the Act. (Para 15)