R.A.Sharma, J. - (1.) Petitioner has a sugar mill at Gola Gokaran Nath in which it manufactures sugar and for that purpose it brings sugarcane in railway wagons from various can purchasing centres outside Gola Gokaran Nath into the factory premises. Municipal Board, Gola Gokaran Nath, has imposed toll tax on laden vehicles including loaded railway wagons, which enter the limits of the Municipality. Being aggrieved, the petitioner has filed this writ petition, challenging the imposition of toll tax by the Municipal Board.
(2.) The learned Counsel for the petitioner has made two submissions in support of this writ petition, namely, (i) the impugned Rules, which provide for realisation of the toll tax from the owners of the goods brought within the municipal limits in railway wagons, is ultra vires being in contravention of the provisions of Section 153(a) of the U.P. Municipalities Act, 1916 (hereinafter referred to as the Act); and (ii) Section 3 of the Railways (Local Authorities Taxation) Act, 1941 prohibits the levy of toll tax by a Municipal Board on the goods brought in railway wagons within the territorial limits of the municipality. Learned Counsel for the Municipal Board and the learned Standing Counsel have disputed the said contentions.
(3.) Section 128 of the Act empowers the Municipal Board to impose taxes. One of such taxes is toll tax provided for by Section 128 (1) (vii), which is reproduced below : "128. Taxes which may be imposed.-(1) Subject to any general rules or special orders of the State Government in this behalf, the taxes which a board may impose in the whole or part of a municipality are- . . . . .. . . . .. . . (vii) a toll on vehicles and other conveyance, animals and coolies laden with goods other than household of passengers, which enter the limits of the municipality and unload such laden goods or any part thereof within such limits." For imposing the tax under Section 128 the Municipal Board is required under Section 131 to frame a preliminary proposal and to make the draft of the Rules, which it desires the State Government to make under Section 296 in respect of the matters referred to in Section 153. The preliminary proposal and the draft Rules are thereafter published inviting objections. Under Section 133 the Prescribed Authority, after considering the objections can sanction or refuse to sanction the proposal. If the proposal is sanctioned by the Prescribed Authority or the State Government, as the case may be, the State Government, after taking into consideration the draft Rules submitted by the Municipal Board, frames Rules under Section 296 in respect of the tax. The Rules so framed are sent to the Board by the Government and thereupon the Municipal Board directs the imposition of tax under Section 134. The resolution imposing the tax is published in the Official Gazetted under Section 135. Section 135 (3) has declared that "A notification of the imposition of a tax under sub-section (2) shall be conclusive proof that the tax has been imposed in accordance with the provisions of this Act.";