Cantonment Board, Mhow vs M. P. State Road Transport Corporatiun

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1997 Supreme(MP) 198

1997 (2) JLJ 70
(SUPREME COURT)
G.N. Ray and G.B. Pattanaik, JJ.
Cantonment Board, Mhow and another v. M.P. State Road Transport Corporatiun Civil Appeal No. 3657 of 1987;‘ arising out of order of M.P. High Court passed in Misc. Petn. No. 916 of 1986; Decided on 10.4.1997.

Advocates:
P.N. Lekhi with M.K. Garg for appellant; B.D. Agarwal with Niraj Sharma . for respondents.

Headnote:(1) Legal Maxims -- leges posteriores priores conterarias abrogant -- is subject to the maxim generalia specialibus non derogant -- the theory that the later laws abrogate earlier contrmy laws is subject to the exception that the general law does not derogate from a special one. [Para 7]
       (2) Motor Vehicles Taxation Act, 1947 (M.P.) -- Ss. 3 (2) and 6 -- bar of imposition of tax by local authorities contained under S. 6 -- is only against the tax leviable under S. 3 (2) -- local authorities have not been prohibited to levy entry tax on motor vehicles. When the legislatures imposed a ban on levy of tax by any local authority under section 6 of the Taxation Act what is prohibited is levy of tax which is leviable under section 3 (2) of the Taxation Act. When the same legislature enacted the Municipalities Act in 1961 and authorised the Municipalities to impose tax on vehicles entering the limits of the Municipality under section 127 (1) (iii), they must be presumed to be aware of the provisions of the Taxation Act and leviability of the tax thereunder in respect of Motor Vehicles under or kept for use. Order of High Court reversed. [Para 9]
       (3) Municipalities Act, 1961 (M.P.) -- S. 127 (1) (iii) -- M.P. Motor Vehicles Taxation Act. 1947 -- S. 3 (2) -- there is no repugnancy between the two -- under S. 127 (1) (iii) of l961 Act. tax is imposed on entry of motor vehicle -- under S. 3 (2) of 1947 Act. tax is imposed on motor vehicles used or kept for use -- there are different fields to operate. [Para 9]
       (4) Interpretation of Statutes -- later laws abrogate earlier contrary laws -- is subject to exception that a general provision does not derogate from special one. (1990) 4 SCC 406 relied on. [Para 9]
       (5) Interpretation of Statutes -- alleged conflict in two provisions -harmonious constmction by which bath remain valid should be adopted by Court. [Para 9]
       (6) General Clauses Act, 1897 -- S. 6 -. theory of implied repeal inconsistent provisions in two enactments -- earlier law will be deemed to have been repealed -- no express words to this effect are necessary in later enactment. (1987) 1 SCC 631 and (1964) 4 SCR 461 relied on. [Paras 9 & 10]
       (7) General Clauses Act. 1897 -- S. 6 -- manifest repugnancy between provision of Act and later ordinance -- provision of Act will be deemed to have been repealed to the extent of repugnancy. (1967) I SCE 798 relied on.
       [Para 12]
       (8) Motor Vehicles Taxation Act, 1947 (M.P.) -- Ss. 3 (2) and 6 -- M.P. Municipalities Act. 1961 -- S. 127 (1) (iii) -- taxation under both the provisions -- are separate -- no question of repugnancy arises u both can be levied validly. 1959 Supp. (2) SCR 63 relied on. [Paras 13 & 14]
       (9) Cantonments Act, 1924 -- S. 60 :- entry tax on motor vehicles -- can be validly imposed on motor vehicles. [Para 15]
       (10) Motor Vehicles Taxation Act, 1947 (M.P.) -- Ss. 7 proviso, 6 and 3 (2) -- no grant to local authority paid prior to commencement of the Act -- local authority or Cantonment Board does not become entitled to impose and recover the tax under S. 3 (2) and 6. [Para 16]
       ¼1½ fof/kd lw= && i‘pkr~orhZ fof/k ls iwoZrj izfrdwy fof/k fujk—r gksrh gS && bl lw= ds v/;/khu gS fd lk/kkj.k fof/k ls fo‘ks"k fof/k vYih—r ugha gksrhA ¿ iSjk 7À
       ¼2½ eksVj ;ku djk/kku vf/kfu;e] 1947 ¼e-iz-½ && /kkjk 3 ¼2½ rFkk 6 && /kkjk 6 ds v/khu varfoZ"V LFkkuh; vf/kdj.kksa }kjk dj ds vf/kjksi.k dk otZu && /kkjk 3 ¼2½ ds v/khu mn~xzká dj ds gh fo#) gS & eksVj ;kuksa ij izos‘k ij mn~xzghr djus dk LFkkuh; vf/kdj.kks dsk izfr"ks/k ugha gSA
       tc fo/kku eaMyksa }kjk djk/kkku vf/kfu;e dh /kkjk 6 ds v/khu fdlh LFkkuh; vf/kdj.k }kjk dj ds mn~xzg.k ij ikcanh vf/kjksfir dh xbZ rc tks izfr"ks/k yxk;k x;k og ml dj ds mn~xzg.k ij gS tks djk/kku vf/kfu;e dh /kkjk 3¼2½ ds v/khu mn~xzká gSA tc mlh fo/kku eamYk }kjk 1961 esa uxjikfydk vf/kfu;e vf/kfu;fer dh xbZ rFkk /kkjk 127 ¼1½ ¼rhu½ ds v/khu uxjikfydk dh lhek esa izos‘k djus okys ;kuksa ls dj mn~x`ghr djus ds fy, uxjikfydkvksa dks izkf/k—r fdl x;k rc ;g mi/kkj.kk dh tkuk gksxh fd mUgsa djk/kku vf/kfu;e ds mica/kksa dh rFkk mi;ksx fd, tk jgs vFkok mi;ksx ds fy, j[ks tk jgs eksVj ;kuksa ds laca/k esa rn/khu dj dh mn~xzkárk dh tkudkjh gksxhA mPp U;k;ky; dk vkns‘k myVk x;kA ¿ iSjk 9À
       ¼3½ uxjikfydk vf/kfu;e] 1961 ¼e-iz-½ && /kkjk 127 ¼1½ ¼rhu½ && e-iz- eksVj ;ku djk/kku vf/kfu;e] 1947 && /kkjk 3¼2½ && nksuksa ds chp dksbZ fojks/k ugha && 1961 ds vf/kfu;e dh /kkjk 127¼1½ ¼rhu½ ds v/khu dj eksVj ;ku ds izos‘k ij vf/kjksfir && 1947 ds vf/kfu;e dh /kkjk 3¼2½ ds v/khu ij mi;ksx fd, tk jgs vFkok mi;ksx ds fy, j[ks tk jgs ;kuksa ij vf/kjksfir && izHkko esa {ks= fHké gSA ¿ iSjk 9À
       ¼4½ fof/k dk fuoZpu && i‘pkr~orhZ fof/k ls iwoZrj izfrdwy fof/k fujk—r gksrh gS && bl viokn ds v/;/khu gS fd lk/kkj.k mica/k ls fo‘ks"k fof/k vYih—r ugha gksrhA ¼1990½ 4 ,l lh lh 406 voyafcrA ¿ iSjk 7À
       ¼5½ fof/k dk fuoZpu && nksuksa mica/kksa esa vfHkdfFkr fojks/k && U;k;ky; }kjk ,slk lkekatL;iw.kZ vFkkZUo;u viuk;k tkuk pkfg, ftlls nksuksa fof/kekU; cus jgssaA ¿ iSjk 9À
       ¼6½ lk/kkj.k [kaM vf/kfu;e] 1897 && /kkjk 6 && foof{kr fujlu dk fl)kar && nks vf/kfu;eksa esa vlaxr mica/k && iwoZrj fof/k fujflr ekuh tk,xh && i‘pkr~orhZ vf/kfu;fefr esa bl izHkko ds Li"V ‘‘kCn vko‘;d ughaA ¼1987½1 ,l lh lh 631 rFkk ¼1964½ 4 ,l lh lh 461 voyfcrA ¿ iSjk 9 ,oa 10À
       ¼7½ lk/kkj.k [kaM vf/kfu;e] 1897 && /kkjk 6 && vf/kfu;e ds mica/k rFkk i‘pkr~orhZ v/;kns‘k ds chp izdV fojks/k && vf/kfu;e dk mica/k fojks/k dh lhek rd fujflr ekuk tk,xkA ¼1967½ 1 ,l lh vkj 798 voayfcrA ¿ iSjk 12À
       ¼8½ eksVj ;ku djk/kku vf/kfu;e] 1947 ¼e-iz-½ && /kkjk 3 ¼2½ rFkk 6 && e-iz- uxjikfydk vf/kfu;e] 1961 && /kkjk 127 ¼1½ ¼rhu½ && nksuks mica/kksa ds v/khu djk/kku && i`Fkd~ gS && fojks/k dk iz‘u gh ugha mBrk && nksuksa dk fof/kekU;r% mnxzg.k fd;k tk ldrk gSA 1959 lIyh- ¼2½ ,l lh vkj 63 voyafcrA ¿ iSjk 13 rFkk 14À
       ¼9½ Nkouh vf/kfu;e] 1924 && /kkjk 60 && eksVj ;kuksa ij izos‘k dj && eksVj ;kuksa ij fof/kekU;r% vf/kjksfir fd;k tk ldrk gSA ¿ iSjk 15À
       ¼10½ eksVj ;ku djk/kku vf/kfu;e] 1947 ¼e-iz-½ && /kkjk 7 ijarqd ijarqd 6 rFkk 3 ¼2½ && vf/kfu;e ds vkjaHk ls iwoZ LFkkuh; izkf/kdj.k dks minku lanÙk ugha && LFkkuh; izkf/kdkjh vFkok Nkouh cksMZ /kkjk 3¼2½ rFkk 6 ds v/khu dj vf/kjksfir djus rFkk olwyus dk gndkj ugha cu tkrkA ¿ iSjk 13 rFkk 14À

JUDGMENT

Pattanaik, J. -- 1. These six appeals raise a common question and are directed against the judgment of the Madhya Pradesh High Court, the said common question of law being whether the Cantonment Board is entitled to levy entry tax on Motor Vehicles ? The High Court of Madhya Pradesh by the impugned judgments has come to the conclusion that in view of the bar of imposition of tax by any local authority contained in section 6 (I) of the Madhya Pradesh Motor Vehicles Taxation Act, 1947 (hereinafter referred to as the Taxation Act) the Municipality could not have imposed the entry tax on Motor Vehicles conferred under section 127 of the Madhya Pradesh Municipalities Act, 196 I (hereinafter referred to as the Municipalities Act) and consequently the Cantonment Board in exercise of its power under section 60 (I) of the Cantonment Act cannot impose the entry tax on motor vehicles, the said power to be-extensive with the power of a Municipality under section 127 of the Municipalities Act.

2. The broad facts leading to the impugned judgments of Madhya Pradesh High Court may be briefly stated as under:-

3. To consolidate and amend the law relating to the administration of Cantonments the Cantonments Act 1924 (Act 2 of 1924) was enacted in place of the earlier Cantonment Act (Act 15 of 1910 and the Cantonment Code of 1912) to bring the law relating to the Administration of Cantonments in conformity with the ordinary Municipal law. Cantonments is defined in section 3 of the said Act to mean any place or places in which any part of the Forces is quartered to be declared and notified in the Official Gazette by the Central Government. Under section 10 of the said Act for every Cantonment there shall be a Cantonment Board and the said Board is a body corporate having perpetual succession and a common seal with power to acquire and hold property both moveable and immovable as provided under section 11 of the said Act. Chapter V of the said Act deals with taxation which could be imposed by the Cantonment Board. Section 60 of the Act is a General Power of taxation which may be extracted herein below :-

60. General Power of taxation :-- (1) The Board may, with the previous sanction of the Central Government, impose in any cantonment any tax which under any enactment for the time being in force, may be imposed in any municipality in the State wherein such cantonment is situated.

(61) Any tax imposed under this section shall take effect from the date of its notification in the Official Gazette or where any later date specified in this behalf in the notification, from such later date.

4. The Madhya Pradesh Motor Vehicles Taxation Act, 1947 (M.P. Act No. VI of 1947) provide for the levy of a tax on Motor Vehicles in Madhya Pradesh. Section 3 (I) of the said Act entitled the Taxation Authority to levy tax on motor vehicles used or kept for use at the rate specified in the First Schedule read with sub-section (2) of section 3 of the said Act. While the Taxation Act was in force the Madhya Pradesh legislatures enacted the law relating to Municipalities and to make better provision for the organisation and administration of Municipalities in Madhya Pradesh called the Madhya Pradesh Municipalities Act, 196 I (M.P. Act No. 37 of 1961). The aforesaid Municipalities Act repealed the earlier law relating to Municipalities in different parts of Madhya Pradesh, namely, the Central Provinces and Berar Municipalities Act, 1922, the Madhya Bharat Municipalities Act, 1954, the Vindhya Pradesh Municipalities Act, 1946, and the Bhopal State Municpalities Act, 1955. Section 127 (1) (iii) of the said Municipalities Act whith has a direct bearing in deciding the controversy that has arisen in these appeals may be extracted hereinafter in extenso for better appreciation of the point in issue.

127. Taxes which may be imposed -- (1) A council may, from time to time, and subject to the provisions of this Chapter, and any general or special order which the State Government

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1997 Supreme(MP) 198

1997 (2) JLJ 70(SUPREME COURT)G.N. Ray and G.B. Pattanaik, JJ.Cantonment Board, Mhow and another v. M.P. State Road Transport Corporatiun Civil Appeal No. 3657 of 1987;‘ arising out of order of M.P. High Court passed in Misc. Petn. No. 916 of 1986; Decided on 10.4.1997.

Cases Referred (4)

1997 (2) JLJ 70
(SUPREME COURT)
G.N. Ray and G.B. Pattanaik, JJ.
Cantonment Board, Mhow and another v. M.P. State Road Transport Corporatiun Civil Appeal No. 3657 of 1987;‘ arising out of order of M.P. High Court passed in Misc. Petn. No. 916 of 1986; Decided on 10.4.1997.