- (1.) THIS appeal is directed against the judgment passed in letters Patent Appeal No. 556 of 2001 dated 4th October, 2001 delivered by the High Court of Jharkhand at Ranchi.
(2.) THE central question which arises for adjudication in this appeal is regarding the power, competence and authority of the cantonment Board to levy entry tax on vehicles entering into the cantonment area. Appellant No. 1, Ramgarh Cantonment Board, a board constituted under the Cantonments Act, 1924 (hereinafter referred to as the Act), in exercise of the power vested in it under section 60 of the Act invited tender for collection of vehicle tax entering into Ramgarh Cantonment Area. Respondent no. 3 in this appeal, Mukesh Prasad being the highest bidder was awarded the contract and was asked to realize vehicle tax at the rate of Rs. 10/- from each goods vehicle entering into the ramgarh Cantonment Area for a period of six months starting from 12/3/2001. Respondent no. 3 deposited the earnest money. On 8/3/200, a formal agreement was executed between respondent no. 3 and the Cantonment Board. The Cantonment board immediately after executing the said agreement issued a letter dated 11/3/2001 restraining respondent no. 3 from collecting vehicle entry tax on the directions of the Deputy commissioner, Hazaribagh, Bihar. The Secretary, Road Construction Department, Ranchi vide letter dated 30. 5. 2001 informed that prior permission of the ministry of Road Transport and the National Highway, government of India was necessary for the purpose of putting barriers to collect tax on the national highway. The Cantonment board is entitled to collect only those taxes which can be realized by the municipality. In other words, the Cantonment Board cannot levy the tax which cannot be levied by the Municipality.
(3.) ON 26. 7. 2001, the learned Single Judge allowed the writ petition filed by respondent No. 3 by holding that the Deputy commissioner, Hazaribagh could not restrain the Cantonment board from levying of entry tax on goods vehicles passing through the Cantonment Board Area. The learned Single Judge quashed the order by which restriction on collecting entry tax was placed by the Deputy Commissioner, Hazaribagh. The State of Jharkhand, aggrieved by the order of the learned Single Judge, preferred an appeal under clause 10 of the letters Patent. The Division Bench in the impugned judgment comprehensively examined the power, authority and competence of the Cantonment Board in levying entry tax on vehicles entering into the Cantonment Area. The Cantonments Act, 1924 is vested with section 60 which is the source of power, authority and jurisdiction for imposition of levy of tax. Section 60 reads as under:- 60. General power of taxation- (1) The Board may, with the previous sanction of the Central Government, impose in any cantonment any tax which, under any enactment for the time being in force, may be imposed in any municipality in the State wherein such cantonment is situated. (2) Any tax imposed under this section shall take effect from the date of its notification in the Official Gazette or where any later date is specified in this behalf in the notification, from such later date. " ;