DAMODAR VALLEY CORPORATION Vs. STATE OF BIHAR

JUDGEMENT

(1.) 1. The petitioner has filed this application under Articles 226 and 227 of the Constitution of India, for quashing three notices dated 10th February, 1965, (Annexures 'A' to 'A/2'), issued by the Superintendent of Commercial Taxes, Giridih, as also his orders dated the 24th and the 29th March, 1966 (Annexures 'E' and 'E/1').

(2.) By the impugned notices the Superintendent of Commercial Taxes called upon the petitioner to show cause as to why penal action under the Act should not be taken against the petitioner for its having failed to get itself registered under the Bihar Electricity Duty Act, 1948 (hereinafter referred to as the Act). These notices also required the petitioner to apply for registration under the Act. By the impugned orders (Annexures 'E' & 'E/1') the Superintendent of Commercial Taxes directed the petitioner to pay electricity duty under the Act by the 29th of March, 1966.

(3.) Mr. S.N. Dutta, appearing for the petitioner, submitted that the petitioner is incorporated by an Act of Parliament for the development of Damodar Valley which is an inter -State river Valley and thus enjoyed immunity from taxation by a pre -Constitution State law under Article 288(1) of the Constitution. According to his submission, the Bihar Electricity Duty Act, 1948, being a pre -Constitution Act, was clearly hit by Article 288(1) of the Constitution in so far as it purports to impose electricity duty on the petitioner. He further submitted that, although Section 3 of the Act was amended by the Bihar Electricity Duty (Amendment) Act, 1963 (hereinafter referred to as the Amending Act), which received assent of the President under Article 288(2) of the Constitution, that would not save the Act, as, according to him, Section 4 was the charging Section which created the liability and not Section 3 of the Act.