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TMI Blog1965 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... is a landholder in the district of i Kamrup. As such landholder, he holds a hat or market on his land since the year 1936 and this market is known as Kharma hat. In 1953-54, the local board of Barpeta, within whose jurisdiction the Kharma market is held, issued notice to the appellant to take out a licence and pay Rs. 600/- for the year 1953-54 as licence-fee for holding the market. Later this sum was increased to Rs. 700/- for the year 1955-56. The appellant continued .protesting against this levy but no heed was paid to his protests and the amount was sought to be recovered by issue of distress warrants and attachment of his property. Consequently, the appellant filed a writ petition in the High Court challenging the constitutionality of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved, the High Court granted a certificate under Art. 132 of the Constitution; and that is how the matter has come up before us. The first question which falls for consideration therefore is whether the impost in the present case is a tax on land within the meaning of entry 49 of List II of the Seventh Schedule to the Constitution. It is well-settled that the entries in the three legislative lists have to be interpreted in their widest amplitude and therefore if a tax can reasonably be held to be a tax on land it will come within entry 49. Further it is equally well-settled that tax on land may be based on the annual value of the land and would still be a tax on land and would not be beyond the competence of the State legislature on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule, which shall be charged for the financial year. It will be seen from the provisions of these three sub- sections that power of the board to impose the tax arises on its passing a resolution that no land within its jurisdiction shall be used as a market. Such resolution clearly affects land within the jurisdiction of the board and on the passing of such a resolution the board gets the further power to issue licences for holding of markets on lands within its jurisdiction by a resolution and also the power to impose an annual tax thereon. Now it is urged on behalf of the appellant that when sub-s (2) speaks of imposing of "an annual tax thereon" it means the imposition of an annual tax on the market, and that there is no provision in Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .The form of the tax i.e. its being an annual tax as contrasted to a tax for each day on which the market is held also shows that in essence the tax is on land and not on the market held thereon.Further the tax is not imposed on any transactions in the market by persons who come there for business which again shows that it is an impost on land and not on the market i.e. on the business terein. Then sub-s (5) provides that the tax shall be paid by the owner of any land used as a market which again shows that it is on the land that the tax is levied, though the charge arises when it is used as a market. Sub-section (6) then lays down that on receiving the amount so fixed the board shall issue a licence to the person paying the same. Here agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dues is not liable to tax under s. 52 and is different from tax. The scheme of s. 62 therefore shows that whenever any land is used for the purpose of holding a market, the owner,occupier or farmer of that land has to pay a certain tax for its use as such. But there is no tax on any transaction that may take place within the market. Further the amount of tax depends upon the area of the land on which market is held and the importance of the market subject to a maximum fixed by the State Government. We have therefore no hesitation in coming to the conclusion on a consideration of the scheme of s. 52 of the Act that the tax provided therein is a tax on land, though its incidence depends upon the use of the land as a market. Further as we have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the year 1953-54. which was continued Inter on, with some modifications. At that time there were five markets on which the tax was imposed including the Kharma market. The lowest tax was at Rs. 400/- on two markets, then at Rs. 500/- on the third market and at Rs. 600/- on the Kharma market and finally at Rs. 1000/- on the fifth market. Rule 300(2), flamed in accordance with s. 63(3) runs thus:--- "Rs. 1000/- (Rupees one thousand) only per annum has been fixed as the maximum amount of tax which may be levied by the local boards in Assam on markets licensed under section 62 of the Act. Any local board may with the previous approval of Government impose a tax within this maximum according to the size and importance of a market." Now ..... X X X X Extracts X X X X X X X X Extracts X X X X
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