Case: Mgr Industries Asso.  Vs. State Of U P

3. The brief facts of the case are:Appellant No.1 is an Industries Association registered under the Societies Registration Act, 1860 whose members are running small industries. Zila Panchayat, Hapur initiated proceedings for realisation of tax for members of the appellant Association which was objected to and a representation was submitted to the District Magistrate. Appellant also represented the matter to the Upper Mukhya Adhikari, Zila Panchayat, Bulandshehar and filed a Civil Misc. Writ Petition (Tax) No.4 of 2013 which was disposed of by the Allahabad High Court by order dated 6th January, 2014, directing the State Government to consider the appellants representation. The representation submitted by the appellant was rejected by the Principal Secretary, Panchayat Raj vide its order dated 23rd June, 2014. The State Government held that although the area has been declared as industrial area under U.P. Indusrial Area Development Act, 1976 but no notification having been issued as industrial township within the meaning of Article 243Q(1) proviso of the Constitution, the Zila Panchayat/Nagar Panchayat is entitled to realise tax and appellants cannot claim exemption from taxation by local authority. Aggrieved by the order of the State Government, appellants filed a Civil Misc. Writ (Tax) No.447 of 2014 claiming the followingCall for the records of the case; and issue writ, order or direction in the nature of certiorari quashing the order dated 2362014 passed by respondent No.1 (Annexure 8 to this writ petition).B. Issue writ, order or direction in the nature of mandamus directing the respondent Nos.2, 3 and 4 not to realise any taxes from the members of petitioner No.1 (as mentioned in paragraph No.10 of the writ petition and other members of petitioner No.1).C. Issue any other writ, order or direction the Honble Court deems just and proper on the facts and circumstances of the case.D. Award cost of this petition to the petitioner.The writ petition was heard by the High Court and the same was dismissed by its judgment dated 17th July, 2014. The Division Bench of the High Court relying on an earlier Division Bench judgment in Rishipal & Ors. vs. State of U.P. & Ors., 2006 (1) AWC 426 , dismissed the writ petition. The Division Bench also held that the area having not been declared as industrial township, exemption as sought to be claimed by the appellants under Section 12A of 1976 Act is misconceived. Aggrieved by the judgment of the High Court, the appellants have filed this appeal.

Court's reasoning:
7. From Section 12A it further reveals that if the said area is included in panchayat area, such area with effect from the date of notification made under proviso (proviso to Article 243Q) stands excluded from such panchayat. Thus, specification to be an industrial township as well as a notification under proviso to Article 243Q are condition precedent for excluding from any panchayat area. There is nothing on the record to come to conclusion that the area in question has been specified as an industrial township. Further no notification, as stated by Chief Standing Counsel, has been issued under proviso to Article 243Q by the State Government, hence, question of exclusion of the area from panchayat area does not arise.8. Merely because the villages in question are covered u/s. 2 (d) does not ipso fActo exclude them from panchayat area. As noted above neither it has been specified as Industrial Township nor a notification under Article 243Q has been issued. The relief claimed by the writ petitioner in the writ petition cannot be granted.It shall also be relevant to refer the judgment of this Court in Saij Gram Panchayat vs. State of Gujarat and others, 1999 (2) SCC 366 , where this Court had occasion to consider the proviso to Article 243Q subclause (1) in the context of Gujarat Industrial Development Act, 1962. After insertion of Part IXA in the Constitution, the Gujarat Municipalities Act, 1962 was also amended by adding Section 264A. It was provided under Section 264A that notified area means an urban area or part thereof specified to be an industrial township area under the proviso to Article 243Q(1) of the Constitution of India.Paragraphs 10 and 11 of the judgment are extractedThe Gujarat Municipalities Act, 1962 was amended on 2081993 in view of the insertion of Part IXA in the Constitution. Section 264A was substantially amended. It nowFor the purpose of this chapter, notified area means an urban area or part thereof specified to be an industrial township area under the proviso to clause (1) to Article 243Q of the Constitution ofas a result of this amendment in the Gujarat Municipalities Act, as industrial area under the Gujarat Industiral Development Act, which is notified under Section 16 of the Gujarat Industrial Development Act, would become a notified area under the new Section 264A of the Gujarat Municipalities Act and would mean an industrial township area under the proviso to clause(1) of Article 243Q of the Constitution of India.11. On 791993, the Government of Gujarat issued a notification under Section 16 of the Gujarat Industrial Development Act declaring Kalol Industrial Area as a notified area under Section 264A of the Gujarat Municipalities Act. By another notification of the same date 791993, the Government of Gujarat excluded the notified area from Saij Gram Panchayat under Section 9(2) of the Gujarat Panchayats Act,for treating industrial area as industrial township notification under proviso to Article 243Q(1) was contemplated which is also the statutory scheme under the 1976 Act.17. In view of the aforegoing discussion, we are of the view that it was rightly held by the High Court that exemption under Article 12A of the 1976 Act was not available in the facts of the above case. The appellants were not entitled for the reliefs claimed in the writ petition