Case: State Of Mysore Etc Vs. M. L. Nagade And Gadag &amp; Ors

assessee will have full opportunity to vindicate his stand. It should not be overlooked that the land revenue is a tax and the validity of the taxing statute has to be determined keeping in view the fact that in the matter of taxation, the court allows wide area of picking and choosing and the slab system. We are therefore, of the opinion that there was sufficient guideline to govern the discretion of the Revenue Officer and the rule could not be struck down on the ground that it confers wide arbitrary, uncanalised discretionary power uncontrolled by any guidelines.24. A very feeble attempt was made to urge that there was excessive delegation of essential legislative functions to the executive giving it the power not only to enact the rule but to amend it so as to very the N. A. assessment. Section 50 clearly confers power on the State legislature to levy assessment and when the land is diverted to a use other than agriculture, the legislature conferred the power to levy N. A. assessment. Elaborate provision has been made for levying assessment. Section 172 conferred power to enact rules for giving effect to the provision of the Act and the guideline was provided as hereinabove indicated. Therefore, we are not impressed by the submission that in this case the legislature was guilty of delegating its essential legislative functions in favour of the executive.Re. C. A. Nos. 1407 to 1413 of 1970 :25. In this group of appeals, vires of amended Rule 81 of the Bombay Land Revenue Rules was questioned on the same identical grounds and the challenge must fail for the same reasons. We may however, briefly point out the scheme of the relevant Act and the Rules governing this case.26. Bombay Land Revenue Act was enacted in the year 1879 to consolidate and amend law relating to Revenue Officers and to the assessment and recovery of land revenue and other matters connected with the Land Revenue Administration. Section 48 confers power to levy and assess the land revenue with reference to the use of the land - (a) for the purpose of agriculture, (b) for the purpose of building, and (c) for a purpose other than agriculture or building. Chapter VIII includes provision for surveys, assessment and settlements of land revenue. Chapter VIII-A makes further provisions for assessment and settlement of land revenue on agricultural land. Chapter XI makes detailed provision for the procedure to be followed by the Revenue Officer while discharging their duties and carrying out the functions imposed by the Code. Chapter XIII provides for appeals and revisions against the orders for the Revenue Officer. Section 214 confers power on the State Government to make rules not inconsistent with the provisions of the Act to carry out the purpose and object thereof and for the guidance of all persons in matters connected with the enforcement of the Act. Armed with this power, Lane Revenue Rules, 1951 were enacted. Chapter XIV headed imposition and revision of non-agricultural assessment makes detailed provisions for assessment and levy of N. A. assessment. Rule 80 confers power for alteration of assessment when land assessed or held for agricultural purpose if used for agricultural purpose if used for non-agricultural purpose. Rule 80-A confers power for revision of N. A. assessment on the expiry of the period for which assessment on any land was assessed and levied. Rule 81 provides for ordinary rates of N. A. assessment. It was amended and the validity of the amended rule is in question. Floor and ceiling rates vary from area to area demarcated on the basis of population and it is further provided that in fixing the rates within floor and the ceiling, due regard shall be had to the general level of the value of the lands in the locality used for non-agricultural purposes. Rule 82 makes detailed provision for the rate of non-agricultural assessment to be determined in accordance with that provision where special rate of non-agricultural assessment is in force. Where N. A. assessment is levies at an ordinary rate, the Commissioner before determining the rate at which N. A. assessment will be levied on any particular plot has by notification to divide the villages, towns and cities in each district in his division to which a standard rate under Rule 82 has not been extended into two classes. Even while assessing N. A. assessment, the Commissioner has to keep in view the level of land in the locality used for non-agricultural purposes. In our opinion, both the Act and Rules thus provide for sufficient guidelines, and it cannot be said that the Commissioner enjoys wide arbitrary discretionary power. The discretion has to operate within the floor and the ceiling; the yardstick is the value of the land used for non-agricultural purposes in the locality, the area has to be divided village-wise, city-wise and overall what is being assessed is land revenue because N. A. assessment is nonetheless land revenue. In our opinion, the High Court was in error in striking down the provision on the ground that the Commissioner enjoyed wide arbitrary discretion uncontrolled by any guidelines. The discretion is not only controlled but there is sufficient guideline in the Act and the Rules and therefore, the High Court was in error in striking down the amended Rule 81.27. It was in passing urged that there is no provision for notice before N. A. assessment is levied. We would expect revenue authority ordinarily to hear the person affected by the order levying N. A. assessment or at the time of its appeal or revision, but on this count the demand cannot be struck down because when a demand is served, it can be objected to and the decision is appealable. It cannot be said that the Rule would be bad as it does not inhere the principles of natural justice.28. The decisions of the High Court were not sought to be supported on any other ground. Accordingly, these appeals must succeed.

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

Explanation:
1[ds]23. The High Court in our opinion unfortunately fell into an error in holding that Rule 71 allowed a wide margin to the Revenue Officers in the matter of determining the special assessment to be levied on land used for non-agricultural purpose. The High Court failed to notice that area within which the discretion of the Revenue Officer can operate is circumscribed both by the floor and ceiling fixed and while determining the quantum of assessment, the revenue officer has to bear in mind the use to which land is put as also the profit derived from the use of the land. The order made by the Revenue Officer is appealable. Now when a demand is raised, it can always be controverted under the various provisions of the relevant rules and the concerned assessee will have full opportunity to vindicate his stand. It should not be overlooked that the land revenue is a tax and the validity of the taxing statute has to be determined keeping in view the fact that in the matter of taxation, the court allows wide area of picking and choosing and the slab system. We are therefore, of the opinion that there was sufficient guideline to govern the discretion of the Revenue Officer and the rule could not be struck down on the ground that it confers wide arbitrary, uncanalised discretionary power uncontrolled by any guidelines.Bombay Land Revenue Act was enacted in the year 1879 to consolidate and amend law relating to Revenue Officers and to the assessment and recovery of land revenue and other matters connected with the Land Revenue Administration. Section 48 confers power to levy and assess the land revenue with reference to the use of the land - (a) for the purpose of agriculture, (b) for the purpose of building, and (c) for a purpose other than agriculture or building. Chapter VIII includes provision for surveys, assessment and settlements of land revenue. Chapter VIII-A makes further provisions for assessment and settlement of land revenue on agricultural land. Chapter XI makes detailed provision for the procedure to be followed by the Revenue Officer while discharging their duties and carrying out the functions imposed by the Code. Chapter XIII provides for appeals and revisions against the orders for the Revenue Officer. Section 214 confers power on the State Government to make rules not inconsistent with the provisions of the Act to carry out the purpose and object thereof and for the guidance of all persons in matters connected with the enforcement of the Act. Armed with this power, Lane Revenue Rules, 1951 were enacted. Chapter XIV headed imposition and revision of non-agricultural assessment makes detailed provisions for assessment and levy of N. A. assessment. Rule 80 confers power for alteration of assessment when land assessed or held for agricultural purpose if used for agricultural purpose if used for non-agricultural purpose. Rule 80-A confers power for revision of N. A. assessment on the expiry of the period for which assessment on any land was assessed and levied. Rule 81 provides for ordinary rates of N. A. assessment. It was amended and the validity of the amended rule is in question. Floor and ceiling rates vary from area to area demarcated on the basis of population and it is further provided that in fixing the rates within floor and the ceiling, due regard shall be had to the general level of the value of the lands in the locality used for non-agricultural purposes. Rule 82 makes detailed provision for the rate of non-agricultural assessment to be determined in accordance with that provision where special rate of non-agricultural assessment is in force. Where N. A. assessment is levies at an ordinary rate, the Commissioner before determining the rate at which N. A. assessment will be levied on any particular plot has by notification to divide the villages, towns and cities in each district in his division to which a standard rate under Rule 82 has not been extended into two classes. Even while assessing N. A. assessment, the Commissioner has to keep in view the level of land in the locality used for non-agricultural purposes. In our opinion, both the Act and Rules thus provide for sufficient guidelines, and it cannot be said that the Commissioner enjoys wide arbitrary discretionary power. The discretion has to operate within the floor and the ceiling; the yardstick is the value of the land used for non-agricultural purposes in the locality, the area has to be divided village-wise, city-wise and overall what is being assessed is land revenue because N. A. assessment is nonetheless land revenue. In our opinion, the High Court was in error in striking down the provision on the ground that the Commissioner enjoyed wide arbitrary discretion uncontrolled by any guidelines. The discretion is not only controlled but there is sufficient guideline in the Act and the Rules and therefore, the High Court was in error in striking down the amended Rule 81.27. It was in passing urged that there is no provision for notice before N. A. assessment is levied. We would expect revenue authority ordinarily to hear the person affected by the order levying N. A. assessment or at the time of its appeal or revision, but on this count the demand cannot be struck down because when a demand is served, it can be objected to and the decision is appealable. It cannot be said that the Rule would be bad as it does not inhere the principles of natural justice.28. The decisions of the High Court were not sought to be supported on any other ground. Accordingly, these appeals must succeed.