Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 131 Municipal Council: Madhya Pradesh Municipalities Act 1961-Sections 127 129 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Municipal council : Madhya Pradesh Municipalities Act, 1961-Sections 127, 129, 131- Terminal Tax (Assessment and Collection) on the Goods exported from Madhya Pradesh Municipal Limits Rules, 1996-Terminal tax levied by the Municipal council.on price of cement-Government passed order reducing the terminal tax-Justification of-Held: The power to levy the terminal tax under Section 127 is exercised by municipality by delegation-Since levy was a legislative function of the municipality, the State 'Government did not have a statutory power to interfere with the levy. Municipal Council issued a Notification dated 2.5.1991 levying - terminal tax @ 0.50% on price of the Cement. State Government accorded sanction for imposition of terminal tax in terms of clause (xvi) of sub Section (i) of Section 127 of Madhya Pradesh Municipalities Act, 1961. Thereafter, State Government issued Circular/Government Order dated 15.12.1995 indicating that there must be uniformity in the rates of terminal tax all over the State of M.P. and prescribed the rate of 0.20% on the price of cement. Appellant has been engaged in manufacture of cement and paying tax @ 0.20%. Demand was raised @ 0.50% and the appellant was directed to pay the differential amount Aggrieved appellant preferred. Writ Petition and Single Judge held that Municipal Council was bound by Government Order and there is no justification on the part of Municipal Council in making the impugned demands on the basis of rates fixed by it. Division Bench reversed the finding of Single Judge holding that levy was a legislative function of the Municipality and the State Government did not have a statutory power to interfere with the levy. Hence the present appeal. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2005 INSC 181 |
Petitioner | Associated Cement Companies Ltd. |
Respondent | State Of Madhya Pradesh And Anr. |
SCR | [2005] 3 S.C.R. 258 |
Judgement Date | 2005-04-05 |
Case Number | 2415 |
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