1995 (9) TMI 354

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....aised are invalid. Return has been filed on behalf of respondents Nos. 2 and 3. We have heard learned counsel for the petitioner, learned Additional Advocate-General for the State and learned counsel for the Municipal Council. 2.. Learned counsel for the petitioner urged the following submissions before: (1) The Government was not competent to take out certain areas from two Gram Sabhas and convert the same into a notified area initially and subsequently into a municipality. Since the constitution of the municipality is incompetent, levy of terminal tax by the Municipality is illegal. (2) Terminal tax sought to be imposed by the Municipality is actually entry tax, which the State Government alone can impose. Total taxation is illeg....

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....ral provisions contain the expression. Section 5 deals with creation, alteration of limits or abolition of Municipalities. After following the procedural requirements, it is open to the State Government to declare any local area to be a municipality, or to include any local area or any specified part thereof in the municipality amalgamated, constitute a new municipality in place of a municipality amalgamated, to split up a municipality and to constitute two or more municipalities in its place or withdraw the whole area comprised in any municipality from the operation of the Act. 4.. Learned counsel for the petitioner, relying on the dictionary meaning of "local area" contended that a local area has fixed boundaries as formed by geologica....

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....t pass muster. 5.. It was next contended that the terminal tax is a substitute for entry tax. Power of the municipality to levy tax has been taken away and by means of terminal tax, the municipality is only trying to impose tax through the back door and the petitioner cannot be required to pay entry tax as well as terminal tax on entry of goods into the local area of the municipality. Terminal tax is quite different from entry tax. Entry 89 in List I of the Seventh Schedule of the Constitution of India taking in terminal tax on goods or passengers carried by railway in one case and in the other case carried by road. Entry 52 in List II of the Seventh Schedule of the Constitution relates to taxes on the entry of goods into a local area fo....