- (1.) THIS is a petition under Art. 226 of the Constitution of India.
(2.) THE petitioner is the Associated Stone Industries (Kotah) Ltd. , a public limited company carrying on business of stone quarrying at Ramganj Mandi. THE quarries of the petitioner company lie within the territorial jurisdiction of the Gram Panchayat, Suket. THE Gram Panchayat levied a profession tax under sec. 64 (l) (d) of the Raj. Panchayat Act (No. XXI of 1953) at; the rate of annas 12 per truck load of stone quarried and transported. THE Panchayat gave notice to the petitioner for payment of of Rs. 1500/- and odd for transporting about 2000 truck loads of stone from its quarries to the Railway Station Ramganjmandi during the period from April, 1956, to March, 1957. THE petitioner's case is that levy of the said profession tax is ultra vires the powers of the Panchayat, and was his by Art. 176 of the Constitution of India. It is further contended that the said tax which was being demanded by the Panchayat, was in excess of what could be demanded under R. 26 of the Rules made under the Panchayat Act. THE Government order by which sanction was accorded to the Gram Panchayat of Suket for levying the profession tax has also been referred to by the learned counsel for showing that the demand was not in accordance with the Rules sanctioned by the Government for collection of the said tax. A reply has been filed by the Sarpanch of the Gram Panchayat, Suket, and it has been admitted that a sum of Rs. 1500/- and odd was demanded in respect of 2000 truck loads stone quarried by the Petitioner within the boundaries of the panchayat of Suket and transported to the railway station. It is further stated that the demand of the Panchayat was in accordance with the sanction of the Government for imposition of the tax, as the rate at which the tax was demanded was -/12/- annas per truck load of stone transported from the Panchayat area to some places outside it. Learned counsel for the Gram Panchayat had to concede that the demand of Rs. 1500/-was hit by Art. 276 of the Constitution of India, which provides a maximum limit of Rs. 250/-for profession tax that can be levied by a local authority. Learned counsel, however, urged that the demand of the Gram Panchayat may be limited to the figure of Rs. 250/- and the Panchayat may be permitted to collect the tax upto that amount. He has taken his stand on the sanction accorded by the Government and the provision of R. 26 of the Panchayat (General) Rules, 1954. The Government sanction No. 16680/f. 3 (B) (2)L. S. G. 56 dated 22nd October, 1957, is in Hindi, and its relevant portion may be translated into English as follows: - "i am directed to inform you that the Government in exercise of the powers conferred on it under sec. 64 of the Rajasthan Panchayat Act, 1953, is pleased to accord sanction for levy of the following taxes by the Panchayat according to the rates mentioned before them: - 1. Trade conducting mining business. (a) Precious Minerals like mica, beryi, soapstone. Tamra etc. . . . Rs. 50 . . . Every year. (b) Stone slabs for roof and floor, jali, if they are mined in the Panchayat Circle and exported . . . Rs. 20. . . . Every year. (c) Chalk limestone, building stone etc. if they are mined in the Panchayat circle and exported . . . Rs. 15 . . . Every year (d) Sand, clay, grit, stone, if they . . . Ans. 12 per Truck load. are collected from the Panchayat circle . . . Ans. 1 per cart load. Then follow certain explanations with which we are not concerned, in the present case. R. 26 (1) of the Panchayat (General) Rules is as follows: - The following shall be the maximum limits of the tax under sec. 64 of (1) (d) - Professions trade, callings. Max. rate in rupees. Duration. 1. Trade conducting mining business Rs. 50 Every year (i) Precious minerals like mica, beryl, emerald, talc or soapstone, gypsum, lignite etc. Rs. 50 Every year (ii) Stone slabs for roof and floor if they are mined in the Panchayat circle and exported. Rs. 20 Every year (iii) Chalk, limestone, building stone, etc. if they are mined from the Panchayat circle and exported per cart loadone anna per truck twelveannas. Note : - If the above items except (1) are mined, collected and utilised by a cultivator for the construction and repair of his well and house. This would not be treated in the category of professions, trade and callings. 2. Broker 4 Every year 3. Weighman 3 do 4. Contractor 3 do 5. Ironsmith, carpenter 3 do 6. Goldsmith 6 do 7. Confectioner 3 do 8.Crusher of oil seeds 3 do 9. Other merchants or traders 6 do It is common ground of both parties that the petitioner has quarries in the Panchayat area, and after quarrying stones from those quarries, it transports them to the railway station outside the Panchayat area. The business of the petitioner, therefore, would come within the scope of item (b) or (c), as the case may be of the Government sanction referred to above, and the petitioner's business can in no way fall under item (d), because it is nobody's case that the petitioner collects stones lying on the surface. The Gram Panchayat could, therefore, demand a sum of Rs. 20/- or Rs. 15/- as the case may be from the petitioner, and the Panchayat could not charge the petitioner at the rate of 12 annas per truck load. The action of the Gram Panchayat in demanding Rs. 1500/-from the petitioner at the rate of 12 annas per truck load was not authorised by law, and the petitioner had got a good case of coming to this court for restraining the Gram Panchayat from demanding that sum of money. The writ petition, therefore, succeeds and is allowed, and a direction is issued to the Gram Panchayat, Suket to refrain from demanding profession tax from the petitioner at the rate of 12 annas per truck load of stones quarried by it within the Panchayat area and exported therefrom. The maximum amount which the Panchayat can claim from the petitioner cannot be more than Rs. 20/- or Rs. 15/- per year which the petitioner does not grudge to pay. The respondent will pay costs to the petitioner. . ;