Niranjan Roy vs Dist. Panchayat Officer and Others

Mookerjee, J.—In this Rule the subject matter of challenge is the demand made by Dakshin Barasat Anchal Panchayat upon the petitioners to pay employment tax imposed by the panchayat. Some of the petitioners are employed as Lecturers, some of them are Tutor Lecturers and the remaining are employed as non-teaching staff of Dhruba Chand Haldar College situated at Dakshin Barasat within the limits of the aforesaid Panchayat. In my view, the petitioners are not entitled to contend that the aforesaid Panchayat is not authorised to impose and demand from the petitioners such tax. An Anchal Panchayat, u/s 57(1)(b) of the West Bengal Panchayat Act, 1957 had been empowered to impose yearly tax on professions, trades, callings and employments carried on or held within the local limits of the jurisdiction of the Panchayat on the basis of the total annual income accrued from such professions, trade, calling or employment subject to a maximum of Rs. 250/- per annum in respect of any one person. The corresponding section 47(1)(b) of the West Bengal Panchayat Act, 1973 contains similar provisions for imposition of tax on profession, trades, callings and employments carried on or held within the local limits of a Gram Panchayat. The petitioners themselves claim they are employees of the aforesaid college situated within the local limits of the aforesaid Gram Panchayat.

Article 276(1) of the Constitution of India has laid down, inter-alia that notwithstanding anything in Article 246 no law of the legislature of a State relating to taxes for the benefit of the State or by a Municipality, District Board, Local Board or Local Authority thereunder in respect of professions trades, callings or employments shall be invalid on the ground that it relates to a tax on income. In the instant case, the tax on such employment imposed upon the petitioners does not exceed, the sum of Rs. 250/- per annum specified in clause (i) of Article 276. The Panchayat in question is a local authority. The West Bengal Legislature by the aforesaid enactments has authorised the Gram Panchayat to impose the tax in question in respect of professions, trades, callings or employments carried on or held within the local limits of the Gram Panchayat.

The Supreme Court in the decision reported in MR. KAMTA PRASAD AGGARWAL ETC. Vs. EXECUTIVE OFFICER, BALLABGARH and Another, has held that imposition of professional tax by Panchayat Samities under the provisions considered by the Supreme Court was not illegal on the ground that it amounted to double taxation. I may also refer to several other decisions of the Supreme Court which have upheld the power of the local bodies like Panchayats. Municipalities to impose professional tax subject to the limit specified in Article 276(2) (See Prakash Chand Maheshwari and Another Vs. The Zila Parishad, Muzaffarnagar and Others, , Mahapalika of The City of Agra Vs. The Agra Brick Kiln Owners Asscn. and Another, ).

The demands made by the Gram Panchayat cannot be invalid merely on the ground that reference had been made to the repealed provision of section 57(1) of the West Bengal Panchayat Act, 1957 because section 46(1) of the West Bengal Panchayat Act, 1973 clearly vests Gram Panchayat to impose the taxes specified in clauses (a) and (b) of sub-section (1) of section 46 of the said Act. For the foregoing reasons, I summarily reject this application without any order as to costs.