- (1.) I have had the advantage of perusing the judgment of my learned brother (Bharucha. J. ). I am in entire agreement with the conclusions arrived at therein. However, I think it would be appropriate to add a few lines.
(2.) The facts have been set out in his judgment. I will confine myself only to the question of law.
(3.) The power to tax by the State can be exercised only by the State Legislature. The extent of the power is fixed by the Constitution. The said legislature can impose all taxes as are covered by the subjects enumerated in List II (State List) under the Seventh Schedule. Insofar as the municipalities or local self-governments' are concerned, they are authorised by the State to levy some of these taxes for their own purposes. As laid down in Municipal Board of hardwar v. Raghuhir Singh, "the local authorities levy the tax as agent of the State Legislature. The extent of the powers must be found in the statute which creates the municipality and endows the municipality with such powers. ";