The main legal point established in the judgment is that when a special provision exists, it excludes the general provision, and the Collector had no authority to quash the demand notice issued under Sections 131 and 132 of the Madhya Pradesh Municipalities Act, 1961.

1. Heard on the question of admission.

2. This intra Court appeal has been preferred against the order dated 1-7-2010 passed by the learned Single Judge by which the writ petition preferred by the Respondent No. 1 has been allowed.

3. Facts giving rise to filing of the writ appeal briefly stated are that the Appellant was served with a bill dated 23-1-1998 issued under Section 164 of the Madhya Pradesh Municipalities Act, 1961 (hereinafter referred to as 'the Act') by which the Appellant was asked to make payment of export tax. Thereafter, the Appellant was served with another notice dated 6-6-1998 asking the Appellant to pay export tax for the period from 1-10-1993 to 31-3-1998 which was quantified at Rs. 2.04,083/-. The Appellant being aggrieved by the aforesaid notice dated 6-6-1998, preferred an application under Section 131 read with Section 132 of the Act (Annexure P-15) before the Collector. The Collector vide order dated 3-11-1999 Annexure P-16, set aside the notice issued by the Respondent No. 1. The aforesaid order was challenged by Respondent No. 1 in the writ petition. Learned Single Judge vide order dated 1-7-2010 allowed the writ petition preferred by Respondent No. 1, inter alia, holding that the Collector, under the provisions of Section 131 of the Act, has no authority to set aside the bill/notice issued under Section 164 of the Act. Being aggrieved by the aforesaid order, the Appellant preferred the instant appeal.

4. We have heard learned Counsel for both the sides.

5. Learned Counsel for the Appellant submitted that Respondent No. 1-Municipal Council has no authority in law to levy the export tax. The imposition of tax is absolutely without jurisdiction. It was further submitted that under Section 323 of the Act, the Collector has power to set aside an order passed by Municipality.

6. On the other hand, Shri Trivedi, learned Senior Counsel for Respondent No. 1 has submitted that the Collector has no jurisdiction to set aside the bill for payment of tax which was issued under Section 164 of the Act. It was further pointed out that in fact, the Appellant could have challenged the validity of the notice issued under Section 164 of the Act as provided under Section 172 of the Act before the Civil Judge, by filing an appeal. Therefore, learned Single Judge has rightly set aside the order passed by the Collector.

7. We have considered the submissions made by learned Counsel for the parties. The Madhya Pradesh Municipalities Act, 1961 is an Act to consolidate and amend the law relating to Municipalities and to make better provision for the organisation and administration of Municipalities in Madhya Pradesh. Before proceeding to decide the controversy involved in the appeal is apt to take note of relevant provisions of Madhya Pradesh Municipalities Act, 1961. Sections 131 and 132 of the Act read as under:

131. Power of State Government in regard to relief in taxes.- If on a complaint made to it or otherwise, it appears to the State Government that any tax levied by a Council is unfair in its incidence or that such levy or any part thereof is obnoxious to the interest of the inhabitants of the Municipality, it may, by an order, require the Council to remove the objections to any such tax within such time as may be specified therein and on the failure of Council to comply with the order within the time so specified, to the satisfaction of the Stale Government the State Government may, by Notification and subject to such conditions or restrictions as may be specified therein, abolish, suspend or reduce the amount of rate of any tax.

132. Power of State Government to grant exemption from taxes.- The State Government may, on its own motion or otherwise after giving the Council an opportunity of expressing its views in the matter, by order, exempt from payment of any tax in whole or in part any person or class of persons or any property or description of properties for the purpose of granting protection to any industry or f