Respondent number3 deposited the earnest money.
Respondent number3 in this appeal, Mukesh Prasad being the highest bidder was awarded the companytract and was asked to realize vehicle tax at the rate of Rs.10/ from each goods vehicle entering into the Ramgarh Cantonment Area for a period of six months starting from 12.3.2001.
The Secretary, Road Construction Department, Ranchi vide letter dated 30.5.2001 informed that prior permission of the Ministry of Road Transport and the National Highway, Government of India was necessary for the purpose of putting barriers to companylect tax on the national highway.
The Cantonment Board is entitled to companylect only those taxes which can be realized by the municipality.
The learned Single Judge quashed the order by which restriction on companylecting entry tax was placed by the Deputy Commissioner, Hazaribagh.
The State of Jharkhand, aggrieved by the order of the learned Single Judge, preferred an appeal under clause 10 of the Letters Patent.
2 The central question which arises for adjudication in this appeal is regarding the power, companypetence and authority of the Cantonment Board to levy entry tax on vehicles entering into the cantonment area.
Appellant No.1, Ramgarh Cantonment Board, a board companystituted under the Cantonments Act, 1924 hereinafter referred to as the Act , in exercise of the power vested in it under section 60 of the Act invited tender for companylection of vehicle tax entering into Ramgarh Cantonment Area.
The Division Bench in the impugned judgment companyprehensively examined the power, authority and companypetence of the Cantonment Board in levying entry tax on vehicles entering into the Cantonment Area.
In other words, the Cantonment Board cannot levy the tax which cannot be levied by the Municipality.
On 26.7.2001, the learned Single Judge allowed the writ petition filed by respondent No.3 by holding that the Deputy Commissioner, Hazaribagh companyld number restrain the Cantonment Board from levying of entry tax on goods vehicles passing through the Cantonment Board Area.
The Cantonment Board immediately after executing the said agreement issued a letter dated 11.3.2001 restraining respondent number3 from companylecting vehicle entry tax on the directions of the Deputy Commissioner, Hazaribagh, Bihar.
On 8.3.200, a formal agreement was executed between respondent number3 and the Cantonment Board.
Dalveer Bhandari, J. This appeal is directed against the judgment passed in Letters Patent Appeal No.556 of 2001 dated 4th October, 2001 delivered by the High Court of Jharkhand at Ranchi.
