Case: Municipal Board, Bareilly Vs. Bharat Oil Company And Ors

matters referred to in Section 153 and publish the same. When the proposals have been sanctioned the state Government makes the necessary rules in respect of the tax under Section 296. The rules referred to in Section 128(1) are rules thus framed by the state Government under Section 296 in respect of matters referred to in Section 153. Section 300(2) expressly provides that any rule or regulation made by the State Government may be general for all municipalities or may be special for any one municipality as it directs. 14. The Municipal Manual published by the government contains the general rules made by the government under the Act and general orders issued, in volume I. Volume II contains the Municipal Account Code. The general rules and orders are contained in Chapters I to XII of Part I. The Explanation in chapter I reads as under: "The Rules in this Manual, which are printed in pica type, together with their explanations, illustrations and exceptions, have the force of law, having been made by the government in exercise of the powers conferred by Section 296 of the Act, and, except where otherwise stated, are applicable to all municipalities. The notifications in which they were published are referred to on the margins of the pages"Part II contains the model rules, bye-law and regulations. Section A deals with rules with reference to Section 153 of the Act thus"The following model rules have been framed by the government for the assessment and collection of taxes other than octroi under Sections 153 and 296 of the ActIt is anticipated that they will be found generally applicable to the circumstances of the municipalities of these provinces, and it is desirable that the model from should be adhered to unless there are special reasons justifying any divergence from themIn forwarding proposals for the imposition of addition taxation, Boards are remained that the necessary rules for the assessment and collection of the taxes to be imposed should be forwarded at the same time as the tax proposals, and it will facilitate the disposal of such cases if any deviations from the model forms printed below are specifically referred to in the proposals submitted". Volume II contains the Municipal Account Code. Chapter X deals with octroi and provides in Rule 131 that subject to the exceptions contained in the proviso octroi shall ordinarily be levied on commodities included in the list. In Mool Chand Ram Prasad v. Municipal Board, Banda (AIR 1926 All 517 : 24 ALJ 605) it was held that the rules contained in the code have as much force of law as the Act itself. The octroi rules contained in Chapter X of the Municipal Account code are general rules framed by the State Government in respect of matters referred to in Section 153 in exercise of power under Section 296 and refer to the levy and govern the assessment, collection etc. The rules are general for all municipalities. The 1963 Rules are framed for the appellant Board expressly superseding the general rules are insofar as they apply to the appellant Board. By framing the 1963 Rules the government evinced the intention to cover the field which was covered by 1925 Rules insofar as the Bareilly Municipality was concerned. The subject matter dealt with in 1963 Rules is the same as that dealt with in 1925 Rules. The intention to supersede the earlier rules is clearly expressed. The rule has the force of law. Rule 131 of 1925 Rules has not longer any application in the matter of levying octroi by the appellant Board. That rule stands repealed insofar as the appellant Board is concerned. The rule cannot therefore, be read as curtailing the power under section 128(1)(viii) of the Act to impose octroi. Rules do not enlarge or restrict the authority to impose tax. Authority is conferred by the section. Rules are only regulating the exercise of that power. The imposition of the tax and the regulation of its assessment and collections are totally different matter and they are clearly distinguished. In Zaverbhai Amaidas v. state of Bombay ((1955) 1 SCR 799 : AIR 1954 SC 752 ) this court reiterated the rule of construction that if a later stature deals with the same subject matter and varies the procedure the earlier statute is rappelled by the later statute. In Municipality of Anand v. State of Bombay (AIR 1962 SC 988 : 1962 Supp 2 SCR 366 : 64 Bom LR 688) construing Section 59 of the Bombay District Municipal Act 1901 which is in pari materia with section 128 of the U.P. Municipalities Act, this court said the word, impose in Section 59 meant the actual levy of the tax after authority to levy it had been acquired by rules duly made and sanctioned and this imposition was subject to the general or special orders of the government. The opening words of Section 128 are capable of similar construction and the imposition has to be understood as the actual levy subject to the general rules and special orders contemplated under the other provisions of the Act. 15. The rule making power under Section 296 read with Section 300(2) of the Act enables the state Government to except any one municipality from the operation of the general rule by express provision in that behalf. When the identical authority in exercise of its rule making power duly frames the rules in respect of the same matter expressly providing that the new rules shall apply to a particular municipality in supersession of the existing rules, it must be deemed that existing rules are repealed to that extent. The 1963 Rules had been framed under Section 296 of the Act in supersession of the existing rules after publication by the State Government, in the gazette as provided under section 300 and therefore Rule 131 in the 1925 Rule ceased to have any operation in respect of the matters dealt with therein so far as the Bareilly Municipality is concerned.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]13. As pointed out by this Court in Municipal Board, Hapur v. Raghuvendra Kripal ((1966) 1 SCR 950 : AIR 1966 SC 693 ) taxes raised by a local authority are not imposed by it as a legislature but as a delegate of the legislature. The tax is a valid one if it is one of the taxes the local authority can raise and the delegate imposes it in accordance with the conditions laid down by the legislature. The taxes that can be raised in exercise of delegated power are predetermined and procedure is prescribed by the Municipal Act. Thus Section 128 of the U.P. Municipalities Act confers on the municipalities in the state the power to levy taxes enumerated thereunder. The power conferred is not absolute but is subject to any general rules or special orders of the State Government in this behalf. Section 128(1) does not confer any independent rule making power. The general rules referred to in that section can only be the rules in the matter of such levy specified in Section 153 of the Act and framed in exercise of the power under Section 296 of the Act. The State Government is empowered under Section 296 to make rules consistent with the Act in respect of matters described in Section 153. Rules framed under Section 153 constitute the exclusive machinery for assessment and collection of taxes. The relevant part of Section 153 reads asRules as to assessment, collection and other matters. - The following matters shall be regulated and governed by rules except insofar as provision therefore is made by this Act, namely(a) the assessment, collection or composition of taxes, and, in the case of octroi or toll, the determination of octroi or toll limit(f) any other matter relating to taxes in respect of which this Act makes no provision or insufficient provision and provision is, in the opinion of the State Government,prescribing the procedure for the imposition of taxes by the Board, Section 131 of the Act requires the Board while framing the proposal to prepare a draft of the rules which it desires the State Government to make in respect of the matters referred to in Section 153 and publish the same. When the proposals have been sanctioned the state Government makes the necessary rules in respect of the tax under Section 296. The rules referred to in Section 128(1) are rules thus framed by the state Government under Section 296 in respect of matters referred to in Section 153. Section 300(2) expressly provides that any rule or regulation made by the State Government may be general for all municipalities or may be special for any one municipality as itThe Municipal Manual published by the government contains the general rules made by the government under the Act and general orders issued, in volume I. Volume II contains the Municipal Account Code. The general rules and orders are contained in Chapters I to XII of Part I. The Explanation in chapter I reads asRules in this Manual, which are printed in pica type, together with their explanations, illustrations and exceptions, have the force of law, having been made by the government in exercise of the powers conferred by Section 296 of the Act, and, except where otherwise stated, are applicable to all municipalities. The notifications in which they were published are referred to on the margins of the pages"Part II contains the model rules, bye-law and regulations. Section A deals with rules with reference to Section 153 of the Act thus"The following model rules have been framed by the government for the assessment and collection of taxes other than octroi under Sections 153 and 296 of the ActIt is anticipated that they will be found generally applicable to the circumstances of the municipalities of these provinces, and it is desirable that the model from should be adhered to unless there are special reasons justifying any divergence from themIn forwarding proposals for the imposition of addition taxation, Boards are remained that the necessary rules for the assessment and collection of the taxes to be imposed should be forwarded at the same time as the tax proposals, and it will facilitate the disposal of such cases if any deviations from the model forms printed below are specifically referred to in the proposalsII contains the Municipal Account Code. Chapter X deals with octroi and provides in Rule 131 that subject to the exceptions contained in the proviso octroi shall ordinarily be levied on commodities included in the list. In Mool Chand Ram Prasad v. Municipal Board, Banda (AIR 1926 All 517 : 24 ALJ 605) it was held that the rules contained in the code have as much force of law as the Act itself. The octroi rules contained in Chapter X of the Municipal Account code are general rules framed by the State Government in respect of matters referred to in Section 153 in exercise of power under Section 296 and refer to the levy and govern the assessment, collection etc. The rules are general for all municipalities. The 1963 Rules are framed for the appellant Board expressly superseding the general rules are insofar as they apply to the appellant Board. By framing the 1963 Rules the government evinced the intention to cover the field which was covered by 1925 Rules insofar as the Bareilly Municipality was concerned. The subject matter dealt with in 1963 Rules is the same as that dealt with in 1925 Rules. The intention to supersede the earlier rules is clearly expressed. The rule has the force of law. Rule 131 of 1925 Rules has not longer any application in the matter of levying octroi by the appellant Board. That rule stands repealed insofar as the appellant Board is concerned. The rule cannot therefore, be read as curtailing the power under section 128(1)(viii) of the Act to impose octroi. Rules do not enlarge or restrict the authority to impose tax. Authority is conferred by the section. Rules are only regulating the exercise of that power. The imposition of the tax and the regulation of its assessment and collections are totally different matter and they are clearly distinguished. In Zaverbhai Amaidas v. state of Bombay ((1955) 1 SCR 799 : AIR 1954 SC 752 ) this court reiterated the rule of construction that if a later stature deals with the same subject matter and varies the procedure the earlier statute is rappelled by the later statute. In Municipality of Anand v. State of Bombay (AIR 1962 SC 988 : 1962 Supp 2 SCR 366 : 64 Bom LR 688) construing Section 59 of the Bombay District Municipal Act 1901 which is in pari materia with section 128 of the U.P. Municipalities Act, this court said the word, impose in Section 59 meant the actual levy of the tax after authority to levy it had been acquired by rules duly made and sanctioned and this imposition was subject to the general or special orders of the government. The opening words of Section 128 are capable of similar construction and the imposition has to be understood as the actual levy subject to the general rules and special orders contemplated under the other provisions of theThe rule making power under Section 296 read with Section 300(2) of the Act enables the state Government to except any one municipality from the operation of the general rule by express provision in that behalf. When the identical authority in exercise of its rule making power duly frames the rules in respect of the same matter expressly providing that the new rules shall apply to a particular municipality in supersession of the existing rules, it must be deemed that existing rules are repealed to that extent. The 1963 Rules had been framed under Section 296 of the Act in supersession of the existing rules after publication by the State Government, in the gazette as provided under section 300 and therefore Rule 131 in the 1925 Rule ceased to have any operation in respect of the matters dealt with therein so far as the Bareilly Municipality is concerned