TMI Blog1954 (9) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... erance movement was started by one Shrimati Rajmohni Debi which considerably affected the sale of liquor in the said areas. Accordingly, the petitioner made several representations to the Deputy Commissioner, respondent 2, and the State Government, respondent 1, to reduce the license fees or alternatively to accept the surrender of the licenses. 4. It is alleged by the petitioner that, according to his information, the Excise Commissioner, Madhya Pradesh, respondent 4. sanctioned the remission of the license fees, but his orders were cancelled by the State Government which directed the termination of the contracts and reauctioning of the shops. In the meantime proceedings for recovery of the balance of the license fees were started against the petitioner by the Tahsildar of Samri tahsil, respondent 3, who realised an amount of ₹ 11,489/- in all through coercive processes. Ultimately the State Government agreed to remit a sum of lis. 2,000/- on condition that the petitioner paid the balance by 31-3-1954. The validity of the coercive measures taken by the Tahsildar is impugned in the instant proceedings. 5. The grounds urged by the petitioner are summarised below: ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the word 'person' is wider in import than the word 'citizen' and includes bodies corporate, their Lordships have made their own observations as to when the activities of the State are hit by Art. 14. Commenting on this question Malik, C.J., has observed: Where a business is carried on by the Government as incidental to its ordinary functions as such, there can be no doubt that Art. 14 cannot be relied on in support of the argument that the State should be put on the same footing 'qua' that business as any private citizen. It cannot, be seriously urged that a citizen can claim that he must be given the same rights, as the State has to be given for carrying on its functions as such. (P. 271). Mootham and Wanchoo JJ., discussing this point, have stated their opinion in these terms: It appears to us that when the State engages in business or commerce such as is carried on by a. private individual or corporation it must subject itself to the same obligations as are imposed on, and place itself in the same position as a private individual or corporation except in the matter of taxation. In OUT opinion the State cannot, when, it engages in business or com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engage in any trade or business. When it does so, the Union may impose or authorise the imposition of any tax to such extent as Parliament may by law provide. Clause (3) contemplates that any trade or business may be incidental to the ordinary functions of government. When the State engages in any such trade or business, the income or profits thereof are immune from taxation. This clause does not mean that the State cannot engage in such trade or business unless sanctioned by an Act of Parliament. All that it means is that if Parliament by law declares any such trade or business to be incidental to the ordinary functions of government, it shall not be liable to be taxed by the Union. It appears to us evident that any trade or business or any class of trade or business, which the State undertakes as incidental to the ordinary functions of government, cannot be dissociated from those functions and would not, therefore, constitute the State a 'person' as understood in Art. 14. In a case of this kind the State does not lose its character as such for it is in furtherance of its functions of government that it engages in any such commercial enterprise. With respect, therefore, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by this Act, or any other enactment for the time being in force to be recoverable in the same manner as an arrear of land-revenue may be recovered under this Act in the same manner as an arrear of land-revenue . These provisions empower the State to realise the money due on a contract relating to the excise revenue, directly by the use of the coercive processes enumerated in S. 128, C.P. Land Revenue Act. On the other hand, S. 155 gives a chance to the other party to make payment under protest and institute a civil suit for the recovery of the amount so paid on the ground that nothing was due or that the amount due was less than the amount for which the proceedings were taken. However, besides this express remedy provided in the C.P. Land Revenue Act, there is no bar either in that Act or the C.P. and Berar Excise Act to the institution of a suit earlier to establish one's claim against the State in respect of any set-off or damages for breach of the contract, or for a declaration that the contract has, for any reason recognised by law, become void or unenforceable. The only disparity between the State and a private party in this regard is that whereas the former, in a case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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