JANAPADA SABHA CHHINDWARA STATE OF MADHYA PRADESH Vs. CENTRAL PROVINCES SYNDICATE LTD:AMALGAMATED COALFIELDS LTD

JUDGEMENT

(1.) These appeals are filed by the Janapada Sabha, Chhindwara-hereinafter called 'the Sabha'- against the judgment of the High Court of Madhya Pradesh declaring that the Madhya Pradesh Koyala Upkar (Manyatakaran) Adhiniyam [Madhya Pradesh Coal Cess (Validation) Act ] 18 of l964 does not "give legal effect to the imposition of cess at the rate of 4 pies, 7 pies and 9 pies per ton under the notifications" issued by the Independent Mining Local Board on December 22, 1943, July 29, 1946 and July 19, 1947 respectively, "nor to anything done in pursuance of those notifications".

(2.) The Independent Mining Local Board, Chhindwara, a Board constituted under the Central Provinces Local Self-Government Act 4 of 1920, resolved on March 12, 1935 to levy a cess under Sec. 51 of the Act at the rate of 3 pies per ton on coal extracted within the area. Sanction of the local Government was obtained to that levy. On December 22, 1943, the rate was enhanced to 4 Pies per ton:it was enhanced on July 29, 1946 to 7 pies per ton and on July 19, 1947 the cess was enhanced to 9 pies per ton. The Central Provinces Local Self-Government Act 4 of 1920 was repealed with effect from June 11, 1948 by the C. P. and Berar Local Government Act 38 of 1948. By Sec. 192 of Act 38 of 1948 it was enacted, inter alia, that all rules, bye-laws and orders made, notifications and notices issued, taxes imposed or assessed, cesses, fees tolls or rates levied under Act 4 of 1920 and in force immediately before the commencement of Act 38 of 1948 shall continue to be in force and shall be deemed to have been respectively made, issued, granted, imposed or assessed, levied and taken under Act 38 of 1948, and all rates, taxes and cesses due to the Independent Local Board shall be deemed to be due to the Sabha to whose areas they pertain.

(3.) The levy of coal cess by the Sabha was challenged by the Amalgamated Coalfields Ltd. and others on diverse grounds in petitions filed in this Court under Art. 32 of the Constitution. This Court rejected the petitions holding that Act 4 of 1920 had received the assent of the Governor-General and its validity was not liable to be challenged and that "on a proper interpretation of Section 51 of the Act the levy of coal cess was not excluded from the purview of the local authority". It was also held that the levy of the cess was valid even after the coming into force of the Government of India Act, 1935, and the Constitution of India, in view of Sec. 143 of the Government of India Act, 1935 and Art. 277 of the Constitution. But the Court declined to allow the petitioners to urge that the increase in the rate of tax by resolutions in the years 1943, l946 and 1947 wee invalid: Amalgamated Coal Fields Ltd. v. Janapada Sabha, Chindwara, (1962) 1 SCR 1.