ivil Appeal Nos
2255 56 of 1979
From the Judgment and order dated 20121978 of the Rajasthan High Court in Special Appeal Nos 40 and 39 of 196
VM Tarkunde Tapas C Ray Chandmal Lodha SK Jain Dalveer Bhandari and Badridas Sharma for the appearing parties
The Judgment of the Court was delivered by RANGANATH MISRA J
These are appeals by special leave
Two of them being Civil Appeals 2255 and 2256 of 1979 are by the Municipal Board of Abu Road
The rest of the appeals are by assessees living within the municipal area of Sujangarh
The common ques 586 tion involved in these appeals is as to whether the levy of octroi by different municipalities within the State of Rajasthan on varying basis some on weight of the material and others on the ad valorem basis of the price thereof at varying rates is valid in law
l he High Court decided against the Abu Road municipality while a different bench of that Court in the cases of Sujangarh municipality decided in its favour on the same question
Entry 52 of List II of Schedule VII read with Article 2463 of the Constitution authorises the State Legislature to raise a tax on the entry of goods into a local area for consumption use or sale
The Rajasthan Municipalities Act 1959 hereinafter referred to as the Act in Chapter VII makes provisions for imposition of taxes
Section 104 deals with obligatory taxes while section 105 authorises imposition of other taxes
As far as relevant section 104 provides 1 Every Board shall levy at such rate and from such date as the State Government may in each case direct by notification in the official gazette and in such manner as is laid down in this Act and as may be provided in the rules made by the State Government in this behalf the following taxes namely i       ii an octroi on goods and animals brought within the limits of the municipality for consumption use or sale therein and iii           2 A direction under sub section 1 may provide for the levy of taxes at different rates in different municipalities having regard to their varying local conditions and needs and on the same considerations and by a like direction the State Government may from time to time i vary uniformally or differently in relation to different municipalities the rates of taxes levied or  ii      587 Abu Road municipality prior to 1956 was a part of the State of Bombay and with effect from Ist November 1956 as a result of the States Reorganisation Act of 1956 became a part of the State of Rajasthan
While within the State of Bombay the Abu Road municipality had prescribed octroi duty on cloth at the rate of 19 annas per cent ad valorem and the rate continued till it was varied after promulgation of the Rajasthan Municipalities Act of 1959
The rates in cities like Jaipur were on the basis of weight
Judicial notice can be taken of the fact that the areas which now constitute the State of Rajasthan prior to independence of India were independent States of different dimensions and the local conditions and needs of the people inhabiting those areas considerably varied
There were 13 different Acts then in vogue governing the municipalities within that State
The Rajasthan Municipalities Act was therefore introduced to consolidate and amend the law relating to municipalities in that State
In February 1962 the State Government by notification dated 13th February 1962 issued under section 104 of the Act fixed the rate of octroi at 050 paise in place of 19 annas with effect from 15th February 1962
By notification dated 10th of April 1964 published in the Gazette on 20th of August 1964 the State Government in exercise of powers under section 104 of the Act revised the rates of octroi and so far as the municipal board of Abu Road was concerned Item 62 of the Schedule provided the rate of 1 per cent ad valorem on cloth
This led to the challenge before the High Court
The leamed Single Judge who dealt with the writ petitions relied upon the provisions of section 104 of the Act as it then stood and came to hold that the provisions of section 1041 of the Act were valid but the notification in respect of the municipal board of Abu Road relating to cloth was bad
During the pendency of the appeals before the Division Bench of the High Court sub section 2 of section 104 was added by section 12 of the Rajasthan Municipalities Amendment Act of 1978
The Division Bench overlooked this amendment and reiterated the reasons of the learned Single Judge and dismissed the appeals by judgment dated 20th of December 1978
The state Government authorised levy of octroi on all types of cloth at the rate of one and a half per cent ad valorem in respect of Sujangarh Municipal Board by notification dated 3rd January1976
34 writ petitions were filed before the High court challenging the levy
It was contended inter alia that there was unreasonable discrimination between the citizens and traders of cloth within Sujangarh Municipal area on the one hand and those of Jodhpur Jaipur and other named towns on the other as by authorising levy of octroi at different rates 588 and on different basis discrimination resulted
Reliance was placed on the decision in the Abu Board municipal cases but the Single Judge as also the Division Bench did not entertain the challenge by relying upon the amended provision of section 104 of the Act
That is how that group of appeals too has come before this Court by special leave
There is no dispute as to exigibility of octroi
Every municipality under the Act is a body corporate
Section 7 of the Act provides for it
People residing within each municipal area can be classified as one group different from those residing in any other municipality since octroi is to be levied by the municipality as provided in section 1041 of the Act subject to the control regarding the rates of levy by the State Government
The plea of discrimination on the basis of the rates prevalent in another municipality cannot be entertained
The scheme in section 104 of the Act takes note of the position that local conditions and needs varied and accordingly both in the proviso to sub section  I as also in sub section 2 itself emphasis on that feature has been put
It is thus open to the State Government on the basis of local conditions and needs to prescribe different rates in relation to different municipalities in the matter of rates of taxes to be levied
Varying duty of octroi is therefore not open to challenge
The Division Bench while dealing with the appeals of Abu Road municipality should have taken note of the amendment of sub section 2 with retrospective effect
In some of the municipalities the levy is on the value of the goods while in others it is on the basis of the weight
Here again the State Government seems to have applied its mind and has authorised charge of octroi on weight basis taking into consideration the special circumstances
In bigger municipalities where there are wholesale markets particularly of cloth a reduced rate of octroi has been prescribed to encourage larger import
In smaller municipalities where the import is for direct consumption the levy is on ad valorem basis at a higher rate
The State Government seems to have also taken into consideration that in smaller municipalities there is not much of demand for costly and fine clothes which have higher price while the position is otherwise in bigger municipal areas
This appears to be the justification for adopting the weight basis in respect of larger municipalities and ad valorem basis for the smaller municipalities
This again seems to be a legitimate basis and we do not think any valid objection is available against this differential treatment
Law is well settled that if unequals are treated unequally there is no discrimination and Article 14 of the Constitution is not available to be invoked
589 In view of what we have said above the appeals preferred by A Municipal Board of Abu Road will have to succeed
They are allowed
Other group of appeals relating to Sujangarh Municipality have to be dismissed
Parties are directed to bear their own costs throughout
Before we part with the cases we would like to suggest that in the backdrop of a consolidating and uniform municipal legislation now operating in the field the State Government may rationalise the rate structure prevalent in different municipal areas so that assessment of octroi would be convenient a common method would be adopted and the challenge which is raised now and again though we have made it clear that it would be competent for the State Government to allow varying rates in different municipalities keeping the provisions in section l04 of the Act in view may be avoided
HLC Appeals allowed


Summary:
 International Covenant on Economic Social and Cultural Rights 1966 Article 7 Casual labour Justifiable classification for payment of wages Necessity of Non regularisation of service Not wise policy Necessity for absorption as permanent workers
The petitioners who were working as Daily Rated Casual Labour  in the Posts and Telegraphs Department were categorised as unskilled semi skilled and skilled workers
By the orders of the DG Post and Telegraphs Department No 28 II77 SRSTM dated 15580 and 10 483 R dated 26784 they were further classified into i those who had not completed 720 days of service ii those who had comp leted 720 days and not completed 1200 days of service and iii those who had completed more than 1200 days of service and were granted different rates of wages as laid down therein
Aggrieved by these orders the petitioners submitted a statement of demands through their federation to the authorities claiming regularisation payment of interim relief and bonus supply of dresses leave and medical facilities etc
Not satisfied with the reply received by them the petitioners filed writ petitions for the issue of a writ in the nature of mandamus to the Union of India and to direct it to pay them same salary allowances and other benefits as were being paid to regular and permanent employees of the Union of India in corresponding cadres and to regularise the 599 service of the casual labour who had been in continuous service for more than 6 months
Their principal complaint was that even though many of them had been working for the last ten years as casual labourers the wages paid to them were very low and far less than the salary and allowances paid to regular employees of the Posts and Telegraphs Department belonging to the equivalent categories and secondly that no scheme had been prepared by the Union of India to absorb them regularly in its service and they had been denied the benefits of increments pension leave facilities etc
which were enjoyed by those who had been recruited regularly
The petitioners were opposed by the respondents contending that since the petitioners belonged to the category of casual labour and were not being regularly employed they were not entitled to the same privileges which regular employees were enjoying
Disposing of the writ petitions  HELD 11 The classification of employees in the present case into casual employees and regularly recruited employees for the purpose of paying less than the minimum pay payable to employees in the corresponding regular cadres particularly in the lowest rungs of the department where the pay scales are the lowest is not tenable
The further classification of casual labourers into three categories namely i those who have not completed 720 days of service ii those who have completed 720 days of service and not completed 1200 days of service and iii those who have completed more than 1200 days of service for the purpose of payment of different rates of wages is equally untenable
There is clearly no justification for doing so
Such a classification is violative of Articles 14 and 16 of the Constitution
It is also opposed to the spirit of Article 7 of the International Covenant on Economic Social and Cultural Rights 1966 which exhorts all States parties to the Covenant to ensure fair wages and equal wages for equal work
608E H 12 The State cannot deny at least the minimum pay in the pay scales of regularly employed workmen even though the Government may not be compelled to extend all benefits enjoyed by regularly recruited employees
Such denial amounts to exploitation of labour
608Dl 13 The Government should be a model employer
It cannot take advantage of its dominant position and compel any worker to work 600 even as a casual labourer on starving wages
It may be that the casual labourer has agreed to work on such low wages
That he has done because he has no other choice
It is poverty that has driven him to that state
608E Fl 14 It may be that the petitioners have not been regularly recruited but many of them have been working continuously for more than a year in the Department and some of them have been engaged as casual labourers for nearly ten years
They are rendering the same kind of service which is being rendered by the regular employees doing the same type of work
608A B 15 Even though the Directive Principle contained in Article 382 may not be enforceable as such by virtue of Article 37 of the Constitution of India it may be relied upon to show that they have been subjected to hostile discrimination
608C  Dhirendra Chamoli and Another vs State of UP 1986 1 SCC V 637 relied on
21 Non regularisation of temporary employees or casual labour for a long period is not a wise policy
610E F 22 India is a socialist republic
It implies the existence of cer tain important obligations which the State has to discharge
Many rights like right to work equal pay for equal work security of work etc
have to be ensured by appropriate legislation and executive measured
609D E 23 If a person does not have the feeling that he belongs to an organisation engaged in production he will not put forward his best effort to produce more
That sense of belonging arises only when he feels that he will not be turned out of employment the next day at the whim of management
Security of work should as far as possible be assured to the employees so that they may contribute to the maximisation of production
Managements and the Governmental agencies in particular should not allow workers to remain as casual labourers or temporary employees for an unreasonably long period of time
609G H 610A 24 The employees belonging to skilled semi skilled and unskilled classes can be shifted from one department to another even if there is no work to be done in a given place
Administrators should realise even as a casual labourer on starving wages
It may be that the casual labourer has agreed to work on such low wages
That he has done because he has no other choice
It is poverty that has driven him to that state
608E F 601 that if any worker remains idle on any day the country loses the wealth that he would have produced during that day
Our wage structure is such that a worker is always paid less than what he produces
610B C 3
The Union of India and the other respondents are directed to pay wages to the workmen who are employed as casual labourers at the rate equivalent to the minimum pay in the pay scales of the regularly employed workers in the corresponding cadres but without any increments with effect from 5th of February 1986 and corresponding Dearness Allowance and Addl
Dearness Allowances if any payable thereon
Other benefits which are now being enjoyed by the casual labourers shall continue to be extended to them
The arrears of wages payable shall be paid within four months
609B C 610G The respondents are directed to prepare a scheme for absorbing as far as possible the casual labourers who have been continuously working for more than one year in the Posts and Telegraphs Departments 610 Fl