Decided on September 21,1983

Vyara Nagar Panchayat Appellant
Vyara Taluka Panchayat Respondents


- (1.) The power of the Taluka Panchayat to levy tax is to be found only in Section 183 of the Act and it specifically enjoins that a tax can be imposed "after observing the preliminary procedure required to be followed under Section 189 of the Act" and Section 189 in its turn specifically requires that as a preliminary step the Taluka Panchayat has to select a tax or a fee which is to be imposed and also approve the rules in respect of those taxes and fees. Unfortunately, the Taluka Panchayat not assisted by the legal hand seems to have handled this whole affair almost in a perfunctory manner. The resolution dated 29-9-76 no doubt refers to house tax, entertainment taxes, octroi and vehicle taxes as the taxes selected by the Panchayat in terms of Section 183 of the Act. Under Rule 3 of the Rules made by the Government as per Section 189 of the Act, the Taluka Panchayat rules must contain a provision about the limits of the area within which the tax was to be imposed. As far as the main Resolution is concerned, it simply states that the tax at the rate of 15 paise per rupee of the tax collected by the Panchayats on those 4 items was to be collected by the Vyara Taluka Panchayat. In other words, the resolution is silent about the liability for such a tax of the people in the areas of the Nagar Panchayat or the Taluka Panchayat where no such taxes were levied there. This means that this class of citizens were not sought to be hit. Still in the rules framed by the Taluka Development Officer, an attempt is made to provide for a different mode of realisation of taxes in areas where those taxes were not levied. Even though the resolution mentions the house tax, entertainment tax, octroi and vehicle tax to be within the sweep of the Panchayat's contemplated action, the notice at Annexure B says that the Rule shall apply to the owners of shops, hotels, mills, factories or cinema houses, but it does not refer to the owners of residential and other buildings nor does it refer to octroi nor does it refer to vehicle tax. Rule made absolute. ;

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