The tax on circumstances and property is a composite tax validly structured under the Town Areas Act, with provisions allowing retrospective application following the establishment of a new notified area.

1. This appeal is filed against the judgment of a learned Single Judge allowing the writ petition of the respondent. The Bench of two Judges, by whom the appeal was at first heard, referred it to a larger Bench on account of a conflict between two Full Bench decisions. Hence the appeal is listed before us.

2. The Notified Area Committee of Mohammadabad, the first appellant, assessed the respondent with a tax of Rupees 281.25 on his circumstances and property. Rs. 250/- was the amount of tax on circumstances, and Rs. 31.25 on property. Annexure B to the writ petition suggests that he was carrying on some business and had a house. The tax was assessed on March 18, 1968. This assessment was quashed by the learned Single Judge.

3. Far back in 1872, Mohammadabad became a town area. Town areas are now governed by the Town Areas Act , 1914. S.14 of this Act provided for the imposition of certain taxes including a tax on a man's circumstances till a part of the year 1948. In that year S.14 was reshaped. The substituted section materially read:
"(1) Subject to any general rules or special orders of the Local Government in this behalf, the taxes which a committee may impose are the following:
(a) A tax upon rent payable under the provisions of the United Provinces Tenancy Act, 1939,.............
(b) A tax upon rent received by proprietors or under - proprietors on account of land as defined in S. 3 of the United Provinces Tenancy Act, 1939, ...............
(c) A tax upon the assessed rental value of sir and khudkasht land...............
(d) A tax on trades, callings or professions..................
(e) A tax upon a building payable by the owner..............."

4. It may be noted that the substituted enactment omitted the tax on a man's circumstances. So the State Legislature passed an amending Act (Act No. 23 of 1950) in July, 1950. S.3 of this Act added Cl. (f) to S.14 in these terms:
"A tax on persons assessed according to their circumstances and property .........
Provided that such a person is not already assessed under Cls. (a) to (e) above."

5. S.5 of the amending Act added Cl. (ee) to S.39(2) for enabling the State Government to make a rule fixing the rate of the ''circumstances and property tax.'' In the exercise of this power the State Government issued a notification on July 20, 1950 fixing the rate of the tax. Clause 3(4) of the notification fixed a ceiling of Rs. 250/- on the rate of tax on circumstances; Cl. 4 fixed a ceiling of Rs. 2,000/- on the rate of tax on circumstances and property. The Mohammadabad Town Area imposed and levied this tax in accordance with this notification.

6. On November 23, 1962 the State Government issued a notification under S.3(1) (d) of the Town Areas Act cancelling the notification which declared Mohammadabad as a Town Area in 1872. The cancellation was made effective from December 1, 1962.

7. On November 23, 1962 the State Government also issued another notification. By this notification under S.337 (1) of the Municipalities Act the State Government constituted the Notified Area of Mohammadabad with effect from December 1, 1962.

8. On March 18, 1968, the Notified Area assessed the 'circumstance and property tax' on the respondent. The quantum of the tax has already been mentioned earlier.

9. Seventeen days before the assessment, that is, on March 1, 1968, the State Government applied S.333 - A of the Municipalities Act to all Notified Areas.

10. Sri Ansari has raised a preliminary objection. It is said that no appeal lies from the judgment of a single Judge in a writ petition filed under Art. 226 of the Constitution.

11. In the former High Court of Allahabad, upto July 25, 1948, an appeal from the judgment of a single Judge passed in the exercise of original civil jurisdiction lay to a Division Bench under Cl. 10 of the Letters Patent. On July 26, 1948 the said High Court and the Chief Court of Oudh were amalgamated and a new High Court was constituted. The new High Court was named the Allahabad High Co