Case: Tata Engineering and Locomotive Company Limited Vs. Gram Panchayat Pimpri Waghere

This appeal by certificate turns on the meaning of the expression "house" as used in section 89 of the Bombay Village. Panchayat Act, 1933 (hereinafter referred to as therespondent is a village Panchayat constituted under the provisions of the Act. In exercise of powers conferred on it for imposition of taxes on houses under section 89 of the Act, the respondent by a resolution dated 24 February, 1952 imposed tax on houses within its jurisdiction. The resolution of 24 February, 1952 decided to levy a tax on house at the rate of Annas -/4/- for every Rs. 100. The resolution further decided that the basis for valuation for a room of old house would be Rs. 100/-, for a room of new house Rs. 125/and for Verandah (Padvi) Rs.another resolution dated 10 August, 1964 the respondent revised the tax on house at the rate of 40 nP. for Rs. 100/- The resolution further said that for factories as a concession the tax would be 25 nP for Rs. 100/- on capitalappellant has factory buildings. The respondent by a notice dated 10 January, 1969 made a demand of taxes on the factory building of the appellant for the years 1967-68 and 1968-69. The respondent charged at the rate of 25 nP for Rs. 100/-. The respondent did not charge the appellant at the rate of 40 nP for Rs. 100/- which was the increased rate pursuant to the resolution dated 10 August, 1964. The respondent thereafter made a demand in the year 1969-70. The aggregate tax involved in this appeal comes to Rs. 1, 34, 763/- for the years 1967-68, 1968-69 and 1969-70.

Court's reasoning:
The amendment of 1954 where the word "building" was substituted for the word "house" does not help the appellant to suggest that factories will be included only within buildings and not within houses. The appellant referred to statement of objects and reasons which said that the village panchayat could not levy a tax on buildings, and, therefore, the word "buildings" was substituted for the word "houses". The statement of objects and reasons is ordinarily not used as aid to construction of a statute. A statement is some- times referred to for the limited purposes of finding the object of the legislature in enacting the statute where all other methods of interpretation fail.The words "houses and lands" as used in section 89 of the Act mean all buildings, and factory buildings would be included within that meaning. The use of the expression "buildings" in place of the words "houses including farm buildings" made explicit what was, implicit in theregard to the nature of the word "houses" as used in taxing legislations and municipal legislation and the nature and purposes of the statute in the present case it is manifest that the legislature used the word "house" so that the village panchayat would be in a position to levy taxes on all buildings situated in the village. The rule makers made no distinction between the dwelling houses andsecond contention of the appellant is unacceptable. The resolution of 10 August, 1964 did not supersede or modify the resolution of 24 February, 1952. No levy was actually imposed pursuant to the resolution of 10 August, 1964. Further the bills served on the appellant were pursuant to the levies imposed under the resolution of 24 February 1952. In 1964 a tax on factory buildings was not raised. The tax on houses was raised. Even if the resolution of 10 August, 1964 be invalid the demands made by the respondent under the 1952 resolution are valid and legal for two reasons. First, the resolution of 1952 has never been superseded; and second, section 186(8) of the 1959 Act indicates that any tax imposed shall in so far as they are not inconsistent be deemed to have been made under the 1959 Act shall continue in force until they are superseded or modified. There is nothing to show that the tax is inconsistent with the 1959 Act, nor was it argued to be so.