Rakesh Tiwari, J. - (1.) -Heard the learned counsel for the parties and perused the records.
(2.) THE petitioner is a partnership firm, which carries on the business of hiring of Kolhu and Karahas (Pans). THE head office of the said firm is situate at Nai Mandi Baraut, district Meerut (now district Baghpat) with one of its branch at Nakur, district Saharanpur, which is situate within the municipal limits of Nakur, district Saharanpur. Notices were issued to the petitioners by Zila Panchayat, Saharanpur. imposing Rs. 1,000 as circumstances and property tax for the assessment year 1987-88. Aggrieved by the notice, the petitioners filed objections and proceedings were ultimately dropped. Notices were again issued to the petitioners by the Zila Panchayat, Saharanpur imposing a sum of Rs. 1,000 as circumstances and property tax for the assessment year 1992-93. It is alleged that the petitioners again filed objections to the fresh notices, but the assessing authority imposed tax amounting to Rs. 400 upon petitioners firm without considering the objections of the petitioners and the relevant provisions of law. Aggrieved by the imposition of tax, the petitioners preferred an appeal against the said assessment before the Commissioner, Meerut Region, Meerut, who dismissed the appeal by the impugned order dated 15.7.1994, Annexure-8 to the writ petition. It is submitted by the learned counsel for the petitioners that the place of business of the petitioners at Nakur in district Saharanpur, which is not a rural area within the definition of Section 121 (a) of the U.P. Kshetra Panchayats and Zila Panchayats Adhiniyam, 1961. The relevant extract of the provisions of Section 121 of the Act is being quoted below : "121. Conditions and restrictions for tax on circumstances and property.-The power of a Zila Panchayat to impose a tax on circumstances and property shall be subject to the following conditions and restrictions, namely : (a) the tax may be imposed on any person residing or carrying on business in the rural area provided that such person has so resided or carried on business for a total period of at least six months in the year under assessment." It is submitted that Nakur, district Saharanpur is declared as municipal area under the U.P. Municipalities Act, 1916 and the petitioners carry on their business at Nakur within municipal limits of Nakur, district Saharanpur, which is established from the assessment certificate for the period April, 1984 to March, 1994 filed as Annexure-1A to the writ petition. It is further submitted that the Additional Commissioner, Meerut Region, Meerut, vide impugned order dated 15.7.1994, had rejected the appeal without giving any opportunity of hearing to the petitioners. A perusal of the impugned order shows that in first para the appellate authority has given reasons for preferring an appeal. In second and third paras he has noted down the contentions of the petitioners and Zila Panchyat, Saharanpur, respectively and in the last para without recording any reasons, he has given conclusion that the imposition of tax was valid and the Zila Panchyat, Saharanpur has full authority to realize the same.
(3.) NO reasons have been recorded for rejecting the objections of the petitioners and there is no specific findings recorded by the appellate authority as to whether petitioners were carrying on their business at Nakur, district Saharanpur or in rural area of Zila Panchayat, Saharanpur, Nakur, district Saharanpur, is situate within the municipal limits and is not a rural area of Zila Panchayat, Saharanpur, hence the authority had no jurisdiction under law to impose tax on petitioners firm. The aforesaid facts have not been denied by the respondents. Only a bald statement has been made that the tax was imposed after considering the reply in accordance with the provisions of Section 121 (a) of the U.P. Kshetra Panchayat and Zila Panchayat Adhiniyam, 1961. There is no finding about the place of business. According to Annexure-1A to the writ petition the petitioners are carrying on their business within the municipal limits and not in the rural area.;