The Cantonment Board cannot levy taxes on vehicles entering its limits without legislative authorization from respective municipal laws.

1.This appeal under Clause 10 of the Letters Patent is directed against the judgment dated 26th July, 2001 whereby the writ application filed by Respondent No.1 writ petitioner against Ramgarh Cantonment Board (Respondent No.2) and others including the State of Jharkhand and Deputy Commissioner, Hazaribagh (Appellant Nos. 1 and 2) was allowed and the impugned restrictions put by the appellant No.2, the Deputy Commissioner, Hazaribagh, were quashed.

2. The brief facts leading to the filing of this appeal are that Ramgarh Cantonment Board, a Board constituted under the Cantonments Act, 1924 , in purported exercise of the power allegedly vested in it under S.60 of the , invited tenders for collection of Vehicles Tax from the vehicles entering into Ramgarh Cantonment area. In response, many persons including writ - petitioner submitted their tenders and deposited earnest money of Rs.25,000/-. The writ petitioner being the highest bidder was accordingly, awarded the contract and asked to realise the Vehicles Tax @ Rs.10/- from each goods vehicle entering Ramgarh cantonment area for a period of six months starting from 12th March, 2001. Even while this contract was in vogue the Cantonment Board appears to have issued an office order immediately thereafter restraining the writ - petitioner from collecting the aforesaid tax from any vehicle because of some objections raised by the Deputy Commissioner, Hazaribagh. The contention of the Deputy Commissioner, Hazaribagh, was that the Cantonment Board was not authorised to levy any tax on the entry of vehicles in the Ramgarh Cantonment area.

3. The contention of the Ramgarh Cantonment Board and the writ - petitioner - contractor before the learned single Judge was that in terms of S.60 of the Cantonment Act, 1924, the Cantonment Board is empowered to impose the aforesaid tax within the Cantonment area and that the procedure prescribed in S.61 and 62 of the Act having been followed, the Board was within its jurisdiction to levy the tax.

4. In order to appreciate the true import of the rival contentions between the parties, we have to consider the legislative scheme to find out whether, in fact, the Cantonment Board in the present case has any authority, power, competence and jurisdiction to levy any tax on the entry of vehicles in the Cantonment area. The Board is relying upon S.60 of the Cantonments Act, 1924 as being the source of the aforesaid power, authority and jurisdiction. S.60 reads thus : -
"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.
(2) Any tax imposed under this section shall take effect from the date of its notification in the official Gazette, or where any later date is specified on this behalf in the notification from such later date."

5. As would be clearly seen, the power to levy any tax in any Cantonment Board area, mentioned in sub-Sec. (1) of S.60 (supra) is dependent upon and co - existent with any such corresponding power that may be vesting in any Municipality in that area and such power in any such Municipality being relatable to and dependent upon any legislative enactment concerning, governing or regulating, the powers of such Municipality. In other words, sub-sec.(1) of S.60 of Cantonments Act not being a totally independent provision by itself, in the sense that the power by itself has not given to the Board to levy tax since the provision is related to and dependent upon any corresponding an