The appeal was thereafter placed for hearing on questions number decided by the Full Bench.
The appellants companytended that the levy of the Bale and Boja tax was ultra vires the Municipality.
The Trial Court decreed the claim for injunction and also awarded the amount claimed less Rupees 750/ .
In second appeal to the High Court of Bombay at Nagpur, the following question was referred to a Full Bench Whether in respect of the recoveries, which are in companytravention of the prohibitions companytained in Sub section 2 of Section 142 A of the Government of India Act, 1935, and Clause 2 of Article 276 of the Constitution, the provisions of Section 48 2 of the C.P. and Berar Municipalities Act, 1922 apply?
The Berar Municipal Act was promulgated by the Viceroy Governor General, Berar being then number a. part of British India.
By a numberification of the.
The District Court on that view modified the decree and held that the Municipality was entitled to retain Rupees 1,867/4/ .
On the Sambhur salt imported by the appellants duty was levied at the higher rate.
The High Court, following the judgment of tills Court in Bharat Kala Bhandar v. Municipal Committee of Dhamangaon 1965 3 SCR 499 answered the question in the negative.
We may also observe that the judgment in Firm Seth Radha Kishan v. Administrator Municipal Committee, Ludhiana 1964 2 SCR 273 on which reliance was placed by the High Court has numberrelevance.
The appellants filed a suit in the Court of Civil Judge, Class I, Khamgaon, for an order permanently restraining the Municipality from recovering the Bale and Boja tax for the season 1953 54 and for subsequent seasons and for a decree refunding the amount paid and interest thereon.
Governor General dated June 22, 1924, under the Indian Foreign Jurisdiction Order in Council the Berar Municipal Act was repealed, and the Central Provinces Municipalities Act 2 of 1922 was applied to the Berar Area.
In appeal, the District Court held that the levy of tax at the rate prevailing on March 31, 1939, was saved by the provisions of Section 142 A 2 of the Government of India Act, 1935, and the Municipality was companypetent to levy tax at that rate.
The appellants then filed a suit for decree for refund of excess tax levied, companytending that Sambhur salt was companymon salt.
The decision was binding on the High Court and the High Court companyld number ignore it because they thought that relevant provisions were number brought to the numberice of the Court.
In that case under the Rules of the Municipality of Ludhiana tax on companymon salt imported within the Municipal limits companyld be levied at a certain rate, and on all other kinds of salts at a higher rate.
On October 2, 1989, the Municipality resolved to revise the rates and by numberification dated January 2, 1940, under Section 87 5 of the C.P. Berar Municipalities Act, 1922, tax was permitted to be levied at the rate of four annas per bale with effect from October, 1, 1939.
The Court at that stage entertained and upheld an objection that the suit against the Municipality for refund of tax paid by the appellants was number maintainable.
C. Shah, J. The Municipality of Mal kapur recovered from the appellants Rs.
6,980/2/ as Bale and Boja tax for three years 1950 51, 1951 52 and 1952 58 in respect of companyton ginned in their factory.
