TMI Blog2017 (2) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The deprivation of the said benefits has to be thus a conscious decision in accordance with condition as contained in Article 243Q. In the case before us, it has not been pleaded that any notification referable to proviso to Article 243(Q)(1) has yet been issued. Thus it was rightly held by the High Court that exemption under Article 12A of the 1976 Act was not available in the facts of the above case. - Civil Appeal No. 1362 of 2017 ( arising out of SLP (C)No. 25529 of 2014 ) - - - Dated:- 3-2-2017 - Ranjan Gogoi And Ashok Bhushan, JJ. JUDGMENT Ashok Bhushan, J. Leave granted. 2. This appeal has been filed against the judgment and order dated 17th July, 2014 of High Court of Judicature at Allahabad by which judgment Civil Misc.Writ (Tax) No.447 of 2014 filed by the appellants has been dismissed. 3. The brief facts of the case are: Appellant No.1 is an Industries Association registered under the Societies Registration Act, 1860 whose members are running small industries. Zila Panchayat, Hapur initiated proceedings for realisation of tax for members of the appellant Association which was objected to and a representation was submitted to the District Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel appearing for the State of U.P. 6. Learned counsel for the appellant contends that area in question having been declared as industrial area by issuing a notification dated 5th September, 2001 in exercise of power under Section 2(d) of U.P. Indusrial Area Development Act, 1976 (hereinafter referred to as '1976 Act'). The appellants are entitled for the benefit of exemption as contemplated by Section 12A of the 1976 Act and by virtue of Section 12A no Panchayat is to be constituted for the said area. Hence, the Zila Panchayat is not entitled to realise any tax under the Uttar Pradesh Kshetra Panchayat and Zila Panchayat Adhiniyam, 1961. 7. The Authority constituted under the 1976 Act fully satisfied the condition under Section 12A of the 1976 Act, hence, there is no requirement of issue of any separate notification as contemplated by Article 243Q of the Constitution of India. It is submitted that once industries have been set up under the notified industrial development area and taxes under Section 11 of the 1976 Act are levied, the industries are exempted from liability of any tax under 1976 Act and the appellants are put on double jeopardy. 8. Learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... included in a Panchayat area, shall, with effect from the date of notification made under the said proviso, stand excluded from such Panchayat area and no Panchayat shall be constituted for such industrial developmentarea or part thereof under the United Provinces Panchayat Raj Act, 1947 or the Uttar Pradesh Kshettra Panchayats and Zila Panchayats Adhiniyam, 1961, as the case may be, and may Panchayat constituted for such industrial development area or part thereof before the date of such notification shall cease to exist. 12. Zila Panchayat, Hapur against whom reliefs have been claimed by the appellants, is Zila Panchayat constituted under the Uttar Pradesh Kshetra Panchayats and Zila Panchayats Adhiniyam, 1961 as amended from time to time. 13. Part IX A was inserted by the Constitution (Seventyfourth Amendment) Act, 1992. Article 243Q is contained in Part IX A of the Constitution dealing with Municipalities which provides as follows: 243Q. Constitution of Municipalities.( 1)There shall be constituted in every State, (a) a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be constituted for such industrial development area or part thereof....... . Section 12A thus, specifically contemplates issuance of notification under proviso to clause (1) of Article 243Q and exclusion from Panchayat area is consequent and dependent upon such notification. Notification under proviso to clause (1) of Article 243Q has to be subsequent to declaration of an area as industrial development area, which itself indicates that declaration of development area under 1976 Act is not sufficient to treat an area as an industrial township. As noted above, industrial township as contemplated by Article 243Q( 1) proviso has to be specifically a public notification after consideration of relevant statutory ingredients referred therein. The exclusion of industrial development area from Panchayat has a serious consequence since persons residing within the industrial development area are immediately deprived of facilities and benefits extended to them by the respective Panchayats. The deprivation of the said benefits has to be thus a conscious decision in accordance with condition as contained in Article 243Q. In the case before us, it has not been pleaded that any notification refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Court had occasion to consider the proviso to Article 243Q subclause (1) in the context of Gujarat Industrial Development Act, 1962. After insertion of Part IXA in the Constitution, the Gujarat Municipalities Act, 1962 was also amended by adding Section 264A. It was provided under Section 264A that notified area means an urban area or part thereof specified to be an industrial township area under the proviso to Article 243Q( 1) of the Constitution of India. Paragraphs 10 and 11 of the judgment are extracted below: 10. The Gujarat Municipalities Act, 1962 was amended on 2081993 in view of the insertion of Part IXA in the Constitution. Section 264A was substantially amended. It now provided: 264A. For the purpose of this chapter, notified area means an urban area or part thereof specified to be an industrial township area under the proviso to clause (1) to Article 243Q of the Constitution of India. Thus, as a result of this amendment in the Gujarat Municipalities Act, as industrial area under the Gujarat Industiral Development Act, which is notified under Section 16 of the Gujarat Industrial Development Act, would become a notified area under the new Section 264A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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