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2014 DIGILAW 140 (UTT)

Revati Print O Pack v. State of Uttarakhand

2014-03-28

ALOK SINGH

body2014
Judgment Alok Singh, J. In all the writ petitions the only question involved is :- As to whether Zila Panchayat is competent to levy and recover the circumstances and property tax from different industrial units situated in industrial area development, controlled and managed by the State Industrial Development Corporation near B.H.E.L., Haridwar. 2. Brief facts of the present case, inter alia, are that State Industrial Development Corporation [hereinafter called as SIDCUL] acquired huge land in different parts of the State and has developed industrial areas. Petitioners as well as other business houses were allotted different plots in different SIDCUL areas for establishing and running the industries. Within the industrial area so developed by the SIDCUL, roads, drains, streetlights are under the control and management of the SIDCUL. 3. Article 265 of the Constitution of India reads as under :- “Taxes not to be imposed save by authority of law. – No tax shall be levied or collected except by authority of law.” As per the dictum of Article 265 of the Constitution of India, no tax shall be levied or collected except by the authority of law. In the light of the mandate of Article 265 of the Constitution of India, now question arises as to whether Zila Panchayat is competent/authorised under any law to levy or collect circumstances and property tax from the different units situated within the industrial area developed set up and under the control of SIDCUL ? S6. Mr. Sandeep Kothari, learned counsel, appearing for the Zila Panchayat Haridwar, while placing reliance on Section 119 of the U.P. Kshettra Panchayats and Zila Panchayats Adhiniyam, 1961, has argued that Zila Panchayat may levy and collect tax as mentioned in Section 119 of the Act. Further argued that Haridwar SIDCUL area was established within the territory of village Roshanabad and no notification was ever issued taking SIDCUL area outside the jurisdiction of Zila Panchayat Haridwar. Therefore, Zila Panchayat, Haridwar is competent/authorised to levy and collect tax. 7. To appreciate the submission made by Mr. Sandeep Kothari, learned counsel for the Zila Panchayat, Haridwar, let me examine all relevant provisions of U.P. Kshettra Panchayats and Zila Panchayats Adhiniyam, 1961. 8. Mr. Kothari, learned Counsel, does not dispute that Zila Panchayat has jurisdiction over the rural areas within the territory of district. 9. 7. To appreciate the submission made by Mr. Sandeep Kothari, learned counsel for the Zila Panchayat, Haridwar, let me examine all relevant provisions of U.P. Kshettra Panchayats and Zila Panchayats Adhiniyam, 1961. 8. Mr. Kothari, learned Counsel, does not dispute that Zila Panchayat has jurisdiction over the rural areas within the territory of district. 9. Rural area is defined under Section 2(10) of Adhiniyam which reads as under :- ““Rural Area” means the area of a district excluding every municipality, notified area, town are, cantonment and area of [Municipal Corporation] situated in the district;” 10. Plain reading of sub-section (10) of Section 2 demonstrates that area outside the territory of municipality, notified area, town area, cantonment area situated in the district shall be a rural area. 11. Section 37 of the Act reads as under :- “Savings in respect of jurisdiction of Zila Panchayat and Kshettra Panchayats. – Nothing in this Act shall – (1) confer on any Kshettra Panchayat or Zila Panchayat any right in respect of any work or institution carried out and maintained by any agency not under the control of such Kshettra Panchayat or Zila Panchayat; or (2) entitle a Kshettra Panchayat or Zila Panchayat to exercise within the limits of any [Municipal Corporation], municipality, notified area, cantonment or town area any authority which is vested in the [Municipal Corporation] [Municipality], notified area committee, cantonment board, district magistrate, any other magistrate or town area committee, as the case may be, provided that the Kshettra Panchayat or Zila Paanchayat may nevertheless – (a) [ x x x ] (b) construct, maintain and control within the aforesaid limits any school, library, hospital, dispensary, poor house, asylum, orphanage, inspection house or other building or institution which is not maintained exclusively for the benefit of persons residing within the aforesaid limits, and (c) do anything within the aforesaid limits the doing which is necessary for the efficient discharge of its functions under this Act.” 12. As per sub-section (1) of Section 37, Zila Panchayat shall have no jurisdiction or right over the area in respect of any work or institution carried out and maintained by any agency not under the control of Kshettra Panchayat or Zila Panchayat. 13. As per sub-section (1) of Section 37, Zila Panchayat shall have no jurisdiction or right over the area in respect of any work or institution carried out and maintained by any agency not under the control of Kshettra Panchayat or Zila Panchayat. 13. Undisputedly, SIDCUL is not under the control of Zila Panchayat, Haridwar and all the roads, drains, sewers and street lights are being installed, developed and managed by the SIDCUL within the territory of SIDCUL township Roshanabad Haridwar. No amenity or facility is being provided by the Zila Panchayat within the SIDCUL township Roshanabad, Haridwar. 14. Coordinate Bench of this Court in the case of Kumaon Garhwal Chamber of Commerce and Industry Chamber House Vs. State of Uttarakhand reported in 2011 (1) U.D. 106 also had occasion to deal with the issue and has opined that Zila Panchayat shall have no jurisdiction over the area which falls within the territory of any municipality, town area and notified area or Industrial Area notified, developed and managed by the agencies other than Zila Panchayat. I am in full agreement with the view expressed by the learned Singh Judge in the case of Kumaon Garhwal Chamber of Commerce and Industry Chamber House (Supra). 15. In view of the discussion made hereinbefore, I find that Zila Panchayat has absolutely no authority under the law to impose, levy or collect tax from any industry or person within the area of municipality, town area, notified area or SIDCUL area. Therefore, impugned notices asking the petitioners to pay tax do not sustain in the eyes of law. 16. Consequently, all writ petitions are allowed. Impugned notices are hereby quashed. 17. No order as to costs.