- (1.) In this petition under Art. 32 of the Constitution a notice of demand issue ed by the Dehri-Dalmianagar Notified Area Committee demanding Rs. 100/- on account of Profession Tax levied under the Bihar and Orissa Municipal Act 1922 (B. and O. Act VII of 1922) - hereinafter referred to as the Act- for the period 1963-64 to l965-66 from the petitioner Shri Ram Bachan Lal, Land Officer, who is in the employment of Rohtas Industries Ltd., Dalmianagar, is sought to be quashed or, the ground that the provisions of the Act under which it has been issued infringe the fundamental rights of the petitioner under Arts. 14, 19 and 31 of the Constitution.
(2.) The Dehri-Dalmianagar Notified Area Committee was constituted by notification dated May 23, 1942, issued in exercise of the powers conferred by sub-s. (1) of S.388 of the Act. Section 388 reads as In follows: "388. Constitution of notified area- (1) The State Government may by notification declare that it is necessary to make administrative provision for all or any of the purposes of this Act in any area specified in the notification, other than a municipality or a cantonment. (2) An area in respect of which such a notification has issued is hereinafter called a notified area". Section 389 enables the State Government to impose taxation in, apply enactments to and constitute committees in the Notified area. This section reads thus: "389. Power to impose taxation in, apply enactments to and constitute committees in, notified area.- The State Government may by notification- (a) apply or adapt to a notified area or to any part of a notified area any provision of this Act which may be applied to a municipality, or any rule or by-law in force or which can be made in any municipality under this or any other Act; (b) impose in a notified area or in any part of a notified area any tax which could be imposed by the Commissioners if the notified area were a municipality, and (c) appoint or make rules for appointment or election of a committee to carry out the purpose of this Act in the notified area". In exercise of the powers under S. 389 by notification dated May 23, 1941, the Governor of Bihar applied to the notified area the following provisions of the Act: "Chapter I Section 3. Chapter II sections 21-27, 29-48, 51-52 clauses (b), (c) and (d). Chapter III Sections 58-78 and 81. Chapter IV Sections 82 (1) (b), (c), (f), (i), (j) and sections 82 (2), 84, 86-88, 98-150, 163-164. The whole of chapters V, VI, VII, VIII and X Chapter XI sections 340, 341 and 342-343 The whole of chapters XII and XIII." The Act was amended by the Bihar Municipal (Amendment) Act, 1953 (Bihar Act XXXII of 1953). It inserted Cl. (ff) in sub-s. (1) of S. 82, which reads as follows: "82. Power to impose taxes.- (1) The Commissioners may, from time to time, at a meeting convened expressly for the purpose, of which due notice shall have been given, subject to the provisions of this Act and with the sanction of the State Government, impose within the limits of the municipality the following taxes and fees, or any of them:- * * * * * (ff) a tax on the trades, professions, callings and employments specified in the Fourth Schedule at such rates not exceeding the rates specified therein as may from time to time be determined by the Commissioners at a meeting; Provided that the rates determined by the Commissioners at a meeting shall be subject to the approval of the State Government and subject to such modification in the rates of taxes and exemption of classes of profession, trades and callings to be taxed as the State Government may direct."
(3.) Proviso (iv) was added to sub-s. (1) of S. 82 of the Act by Bihar Act III of 1959, and reads as follows: "Provided that the Commissioners- * * * * * (iv) shall, if so directed by the State Government by notification, impose within limits of a municipality the taxes mentioned in clauses (c), (b), (f) or (ff) at such rates, subject to the maxima specified in Sections 84 and 85 and the First and the Fourth Schedules, and from such dates, notwithstanding anything contained in this Act, as may be specified in the notification.";