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2016 DIGILAW 695 (GAU)

C. ROTLUANGA v. STATE OF MIZORAM

2016-07-28

AJIT SINGH, MICHAEL ZOTHANKHUMA

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JUDGMENT : Ajit Singh, J. In this petition, the petitioner has challenged the constitutional validity of Rule 47(4) of the Mizoram (Land Revenue) Rules, 2013 (in short "Rules 2013"). He has also prayed fora direction against the respondents to refund him Rs. 15,29,454/- which has been remitted to the Revenue Department as Cess on value of land. 2. In the year 2010, the State Government gave the petitioner "Periodic Patta" of Government land situated at Maubul Ram, Keifang, Aizawl and this land became the main source of his livelihood. The State Government however for construction of Exploratory Drilling Well acquired the land under the provisions of Land Acquisition Act. Pursuant to the acquisition of land, the petitioner was awarded Rs. 1,58,27,324/- as compensation. But from the assessed amount of compensation, 15% of the land value amounting to Rs. 15,29,454/- has been remitted to the Revenue Department as cess on value of land. The remission is done under Rule 47(4) of the Rules, 2013. It is in this background, aggrieved petitioner has challenged the constitutional validity of Rule 47(4) of the Rules, 2013 and prayed for the aforesaid relief. 3. The main thrust of challenge by the petitioner is that since the enabling Mizoram (Land Revenue) Act, 2013 (in short "Act, 2013") does not provide for remittance of 15% of the land value as cess on value of land. Rule 47(4) framed under it for such remission is invalid. The State Government, on the other hand, has defended the validity of Rule. 4. It is well settled that the delegated legislation is open to the scrutiny of Courts and may be declared invalid particularly on two grounds: - (a) violation of the Constitution; and (b) violation of the enabling Act. We shall therefore examine whether any of these grounds are attracted in the present case to persuade us to declare Rule 47(4) as in valid piece of legislation. 5. Entry 49 in List-II (State List) of Schedule-7 of the Constitution clearly confers power on State Legislature to impose tax on land.The Legislative Assembly of the State of Mizoram has enacted Act, 2013. Its Section 47 provides that all lands, for whatsoever allotted, are liable to payment of land revenue and any other taxes or fees to the State Government according to the provisions of the Act and the Rules framed thereunder except when exempted by any of the means stated therein. Its Section 47 provides that all lands, for whatsoever allotted, are liable to payment of land revenue and any other taxes or fees to the State Government according to the provisions of the Act and the Rules framed thereunder except when exempted by any of the means stated therein. and Section 48 deals with the manner in which assessment of land taxes and fees shall be done. According to Section 48 assessment of land revenue and taxes and fees shall be done in the manner as provided in the Rules made under the Act. Section 132 empowers the State Government to make Rules for the purpose of carrying out the provisions of the Act by notification in the official gazette. This Section also requires the Rules so framed to be laid before the Legislative Assembly. 6. The State Government therefore in exercise of the powers conferred by Section 132 of the Act has made Rules, 2013. and the impugned Rule 47(4) provides that in case of acquisition of land covered by "Periodic Patta", compensation as per assessment be paid, but 15% of land value shall be remitted to the Revenue Department as cess on value of land. Rule 47(4) reads as follows: "Rule 47(4): In case of acquisition of land covered by House Pass or Stall Pass or Shop Pass or Periodic Patta or Land Lease under Land Acquisition Act, 1894 as amended from time to time, compensation may be paid as per assessment by the concerned Collector of the District provided that the validity of the tenure of the said land holding has not expired. In addition to crops and building damage compensation, land value may also be assessed and out of the assessed amount, 15 percent of land value shall be remitted to Revenue Department as cess on value of land." 7. "Periodic Patta" is defined in Rule 2(1) (p) of Rules, 2013. Its definition is as under:- "(p) "Periodic Patta" means a prescribed Land Settlement document setting agricultural land periodically whereby an individual has entered an agreement with the Government to pay land revenue, taxes, cesses at the rate legally assessed or imposed in respect of the land so leased out." 8. Its definition is as under:- "(p) "Periodic Patta" means a prescribed Land Settlement document setting agricultural land periodically whereby an individual has entered an agreement with the Government to pay land revenue, taxes, cesses at the rate legally assessed or imposed in respect of the land so leased out." 8. The above quoted definition of "Periodic Patta" clearly means that it is a land settlement document setting agricultural land periodically whereby an individual has entered an agreement with the Government to pay land revenue, taxes, cesses at the rate legally assessed or imposed in respect of the land so leased out. Thus, by "Periodic Patta" a Government land is leased out to an individual as per prescribed land settlement document whereby that individual entered an agreement with the Government to pay land revenue, taxes, cesses at the rate legally assessed or imposed in respect of the land so leased out. 9. "Cess" is a tax and under the scheme of Section 47 of the Act, 2013, it is clear that the land cess in question is in truth a "tax on land" within Entry 49 of List-II (State List) and Rule 47(4) of Rules, 2013 has been made by the State Government in exercise of the powers conferred by Section 132 for carrying out the provisions of Act which also includes liability to pay tax on land for whatsoever allotted except when specifically exempted. (See H.R.S. Murthy v. Collect of Chittoor, AIR 1965 SC 177 , wherein the Supreme Court has held that the demand for payment of "land cess" under the Madras District Boards Act, 1920 was in truth a "tax on lands" within Entry 49 of the State List). Not only this, as seen above, Section 132 mandatorily requires the Rules framed to be laid before the State Legislative Assembly. There is, thus, no abdication by the State legislative Assembly as the delegatee State Government is kept under the vigilance and control of the Legislature. For these reasons, we are of the considered view that Rule 47(1) neither violates any provision of the Constitution of India nor of the enabling Act. We therefore uphold its validity and the remittance of 15% amount assessed on land value as to the Revenue Department. 10. The writ petition is dismissed.