TMI Blog1997 (5) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... he Maharashtra Land Revenue Code, 1966, the Government is pleased to sanction the following rates for the use of water (the right to which vest in Government and in respect of which no rate is liable under any law in force in any part of the State) for non-agriculture purpose. The Collector or such other officer as may be authorised in that behalf should fix the water rates in accordance with rates sanctioned above. These orders supersede all the prevalent orders or practice in regard to the quantum or the rates chargeable under Section 70 of the Maharashtra Land Revenue Code, 1966. These orders were issued with the concurrence of the Finance Department vide in Official reference No. 7041 dated 29th April, 1972 3. The Tehsildar of Hinganghat on the appellant levied cess in the sum of ₹ 18,348.30 for the period from 1967-68 to 1973-74 on the use of water for industrial purpose. The appellant, feeling aggrieved, filed an application under Section 20(2) of the Code before the Sub-Divisional Officer, Hinganghat, challenging the demand of cess, dated December 19, 1974, inter alia, contending that he had easementary right to draw flowing water from the river, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he water for industrial purpose, he is using the water by artificial contrivance, drawing water from the flowing river; the levy of cess stands vested in the State; and, therefore, the State has power to regulate the payment of cess. The Resolution came to be passed in exercise of the power under Section 70 of the Code relating to the mode of payment and the manner in which the land revenue or cess can be computed. Sub-sections (2) (3) of Section 20, are the essential provisions providing for the appellate remedy which the appellant has availed of. List II Entries, namely, Entries 18, 45 and 49 are to be read with reference to the use to which land and water are put. Water is nothing but integral part of land; without land, water does not exist. Section 70 would come within Entry 45 since it relates to the use of land or water regulated in the rural India. Entry 49 relates to use of land or water in the urban area. Since the factory of the appellant is situated in a rural area, Entry 45 is the appropriate Entry and is required to be broadly interpreted so as to bring back within the legislative competence under Article 246 of the Constitution. He further contends that though the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in respect of which no rate is leviable under any law relating to irrigation in force in any part of the State. Such rates shall be liable to revision at such periods as the State Government shall from time to time determine, and shall be recoverable as land revenue; Provided that, the rate for use of water for agricultural purposes shall be one rupee only per year per holder. Section 20 of the Code reads as under : Title of State in all lands, public roads, etc. which are not property of others. (1) All public roads, lanes and paths, the bridges, ditches, dikes and fences, on, or beside, the same, the bed of the sea and of harbours and creeks below the high watermark, and of rivers, streams, nallas, lakes and tanks and all canals and water-courses, and all standing and flowing-water, and all lands wherever situated, which are not the property of persons, legally capable of holding property, and except in so far as any rights of such persons may be established, in or over the same, and except as may be otherwise provided in any law for the time being in force, are and are hereby declared to be, with all rights in or over the same, or appertaining thereto, the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich, as has been said, must not be construed in a narrow and pedantic sense. The interpretation of the statute would apply to the interpretation of the Entries subject to reservation that their application is of necessity conditioned by the subject matter of the enactment itself. It should be remembered that the problem before us is to construe a word appearing in Entry 54 which is a head of legislative power. It cannot be read in a narrow or restricted sense and that each general word should be, held to extend to all ancillary or subsidiary matters which can fairly and reasonably be said to be comprehended to it. It is, therefore, clear that in construing an Entry in a List conferring legislative powers, the widest possible construction, according to their ordinary meaning, must be put upon the words used therein. Reference to legislative practice may be admissible for cutting down the meaning of a word in order to reconcile two conflicting provisions in two legislative lists. The cardinal rule of interpretation, however, is that words should be given their ordinary, natural and grammatical meaning subject to the rider that in construing words in a constitutional enactment, confe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution that it is a living and organic thing and must adapt itself to the changing situations and pattern in which it has to be interpreted. It has also to be borne in mind that where divisions of powers and jurisdiction in a federal Constitution is the scheme, it is desirable to read the Constitution in harmonious way. It is also necessary that in deciding whether any particular enactment is within the purview of one legislature or the other, it is the pith and substance of the legislation in question that has to be looked into. It is well settled that the various entries in the three lists of the Indian Constitution are not powers but fields of legislation. The power to legislate is given by Article 246 and other Articles of the Constitution. The three lists of the Seventh Schedule to the Constitution are legislative heads of fields of legislation. These demarcate the area over which the appropriate legislatures can operate. It is well settled that widest amplitude should be given to the language of the entries in three Lists but some of these entries in different lists or in the same list may override and sometimes may appear to be in direct conflict with each othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to the limitations prescribed under the Constitution. When the vires of an enactment is challenged, it is very difficult to ascertain the limits of the legislative power. Therefore, the controversy must be resolved as far as possible, in favour of the legislative body putting the most liberal construction upon the relevant legislative entry so that it may have the widest amplitude. The court is required to look at the substance of the legislation. It is an equally settled law that in order to determine whether a tax statute is within the competence of the legislature, it is necessary to determine the nature of the tax and whether the legislature has power to enact such a law. The primary guidance for this purpose is to be gathered from the charging section. It is the substance of the impost and not the form that determines the nature of tax. 11. Thus, it is settled principle of interpretation that legislative Entries are required to be interpreted broadly and widely so as to give power to the legislature to enact law with respect to matters enumerated in legislative Entries. Substantive power of the legislature to enact law is under Article 246 of the Constitution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the pound and flowing water in a river. This Court negatived the contention and held that the flowing water vests in the State. In that context, at page 894, the title to the bed of the river was negatived and, therefore, it was held that there were two difficulties in accepting the contention. The first difficulty was that the use of the word water in the sanad, excluded the running water of the river. Besides, it is by no means clear that the title to the flowing water of the river necessarily goes with the title to the bed of the river. Shri Sanghi further contends that this Court made distinction between the cess on sale of goods in State of Madras v. Cannon Dunkerley Co. (Madras) Ltd., [1959]1SCR379 which is popularly known as first Cannon Dunkerley's case. Therein, the question was whether the material supplied to the Company was exigible to sales cess under the Madras Sales Tax Act. This Court held that since sale of goods is clearly covered in different legislative Entries, it is not exigible to sales cess. The ratio therein, therefore, has no application to the facts of the present case. It is seen that Section 20 of the Code clearly includes flowing water, as i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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