MUNICIPAL COUNCIL, PUSAD versus GOKALDAS DOSSA & CO. LTD.

MUNICIPAL COUNCIL, PUSAD versus GOKALDAS DOSSA & CO. LTD.

Since the Boja and Bale Tax was actually imposed under section 66(1)(b) of the Central Provinces Municipalities Act, 1922, in 1932 (before the operation of the Profession Tax Limitation Act, 1941), it is exempt from the Rs. 250 ceiling under Article 276 of the Constitution as per Section 3 and Item 4 of the 1941 Act, and such imposition is valid.

Parties
Appellant: Municipal Council, Pusad; Respondent No. 1: Gokuldas Dossa & Co. Ltd.; Respondent No. 2: M. N. Shroff; Intervener: S. B. Saharya and V. B. Saharya
Jurisdiction
India
Judgment Date
13 November 1979
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Judgment and Order of the Bombay High Court (nagpur Bench)
Outcome
Appeal allowed; judgment of High Court set aside; writ petition dismissed; parties to bear their own costs.
Legal Topics
Professional Tax, Limits on Municipal Taxation, Exemptions Under Profession Tax Limitation Act, Interpretation of Proviso to Constitutional and Statutory Provisions
Constitutional Law Tax Law Municipal Law Professional Tax Limits on Municipal Taxation Exemptions Under Profession Tax Limitation Act Interpretation of Proviso to Constitutional and Statutory Provisions

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Parties

Municipal Council, Pusad

Appellant

Gokuldas Dossa & Co. Ltd.

Respondent No. 1

M. N. Shroff

Respondent No. 2

S. B. Saharya and V. B. Saharya

Intervener

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Judgment and Order of the Bombay High Court (nagpur Bench)

Legal Issues

  1. 1 Whether the Boja and Bale Tax imposed by the Municipal Council, Pusad, is ultra vires and unconstitutional for exceeding the ceiling in Article 276 of the Constitution
  2. 2 Whether the impugned tax is exempt from the statutory and constitutional ceilings under the relevant statutory provisions

Ratio Decidendi

Since the Boja and Bale Tax was actually imposed under section 66(1)(b) of the Central Provinces Municipalities Act, 1922, in 1932 (before the operation of the Profession Tax Limitation Act, 1941), it is exempt from the Rs. 250 ceiling under Article 276 of the Constitution as per Section 3 and Item 4 of the 1941 Act, and such imposition is valid.

Court Disposition

Appeal allowed; judgment of High Court set aside; writ petition dismissed; parties to bear their own costs.

Orders

  • Judgment of the Bombay High Court quashed and set aside.
  • Writ petition of respondent dismissed.