Arijit Pasayat, J. - (1.) Appellant calls in question legality of the judgment rendered by a Division Bench of the Madhya Pradesh High Court at Jabalpur upsetting judgment of a learned single Judge who held that the Municipal Council, Kymore, presently known as Kymore Nagar Panchayat (hereinafter referred to as the Municipal Council) is bound by the Government Order dated 15-12-1995 issued by the State Government under the Madhya Pradesh Municipalities Act, 1961 (in short the Act). Learned single Judge was of the view that the power vests with the State Government who issued the said Government Order and there is no justification on the part of the Municipal Council in making the impugned demands on the basis of rates fixed by it. It was consequentially declared that the present appellant was not liable to pay the differential sum and was only required to pay tax at the rate of 0.20% as fixed by the State Government.
(2.) The factual position which is almost undisputed is essentially as follows: The appellant, a company registered under the Companies Act, 1956 (in short the Companies Act) has its head office at Bombay and is engaged in manufacture of various kinds of cement. It has one cement manufacturing plant at Kymore known as Kymore Cement Works. On 2-5-1991 the Municipal Council in exercise of powers conferred under Section 127(1)(xvi) of the Act had resolved to impose export tax on cement and other commodities which are exported from the limits of the Municipal Council. A Notification was duly published in the Official Gazette on 12-7-1991 levying terminal tax on cement at the rate of 0.50 per cent on the price of the cement. Challenge was made to the said Notification before the High Court and ultimately before this Court but without any success.
(3.) Undisputedly, the Notification dated 2nd May, 1991 was issued in exercise of power conferred under sub-sections (5) and (7) of Section 129 of the Act. The State Government accorded sanction to the proposal of the Municipal Council for imposition of terminal tax within whole of the municipality in terms of clause (xvi) of sub-section (1) of Section 127 of the Act. Thereafter, the State Government issued a General Circular i.e. Government Order dated 15-12-1995 indicating that there must be uniformity in the rates of export tax all over the State of Madhya Pradesh. So far as cement is concerned, the rate prescribed was 0.20 per cent on the price of the cement. The appellant received a notice on 6-8-1996 followed by a letter dated 23-8-1996 requiring payment of export tax at the rate of 0.50 per cent on the price of the cement as was prescribed in the Notification dated 2-5-1991. Since the appellant was paying tax at the rate of 0.20 per cent it was directed to pay the differential amount.;