A.K.Yog, J. - (1.) These six petitions give rise to the controversy pertaining to duties and obligation of 'Local-Bodies' (as part of local self Government) to ensure 'water-supply', within their area, for which said authorities are created under legislative enactment vis-a-vis rights, duties and obligations of the citizens who enjoy the basic amenity like water which is, like air, the core of life. Duty to supply water, in modem times, largely and invariably barring exceptions, rests with local self-Government. No local self-Government can, in the present day complex growth of society, perform its duties unless it has funds and provision to generate funds for its continued existence.
(2.) Resolution No. 2312A, dated May 1, 1901-Government of India (F and C) dealt with the concept of taxation and its limits. It justifies Imposition of tax and mentions that limit may be exceeded in special cases, such as sinking funds for discharging duties, or to meet expenditure of project on a large scale. Resolution, however, notes that surplus available for investment should be taken into account for administrative measures for reduction of taxes.
(3.) Another Resolution No. 3463/XI-27I-E dated September 19. 1916, gives an Insight to the object and purpose of vesting local self Government with right to Impose taxes, octroi, surcharge, etc. By passage of time, experience showed that system of indirect taxes could be resorted. As the people got involved in the process, they became enlightened and realised additional measures have to be taken, i.e.. to resort to taxes subject to balance between two factors, namely, (i) payment for 'definite service' rendered and (ii) to determine actual expenses of that burden to be borne by a local authority. Payment of tax for 'definite services' covered taxes such as 'water tax', 'scavenging tax', tax on Vehicle', 'animals', 'property', etc.;