1959 (11) TMI 68 - HC - Indian Laws

Summary

Issues Involved:
1. Whether estate duty was correctly levied on agricultural lands situated in the Madras State.
2. The applicability of the Estate Duty Act, 1953, to agricultural lands in Madras State.
3. The effect of the Madras State Legislature's resolution and subsequent Central Government notification on the levy of estate duty.
4. The retrospective application of the Estate Duty Act, 1953, to agricultural lands in Madras State.

Issue-wise Detailed Analysis:

1. Whether estate duty was correctly levied on agricultural lands situated in the Madras State:
The primary issue was whether estate duty could be levied on agricultural lands in Madras State, given that the deceased died before the publication of the relevant notification. The court concluded that the estate duty could not be levied on agricultural lands in Madras State because the death occurred before the notification under Section 5(2) of the Estate Duty Act, 1953, was published. The court stated, "the duty will be leviable in regard to the agricultural lands of a deceased only in case of his death after the publication of the notification by the Central Government under S. 5(2), that is, 11-6-1955."

2. The applicability of the Estate Duty Act, 1953, to agricultural lands in Madras State:
The Estate Duty Act, 1953, initially did not include Madras State in its first schedule, meaning agricultural lands in Madras were exempt from estate duty. The court noted, "Under the provisions of the Act as enacted, Madras was not one of the States mentioned in the first Schedule; the result was that under the provisions of the Act in its original form, there could be no levy of estate duty on the value of agricultural lands situate in that State."

3. The effect of the Madras State Legislature's resolution and subsequent Central Government notification on the levy of estate duty:
The Madras State Legislature passed a resolution on 2-4-1955, adopting the Estate Duty Act in respect of agricultural lands, and the Central Government issued a notification on 11-6-1955, adding Madras State to the first schedule. The court emphasized that the notification was essential for the Act to apply to Madras State, stating, "The notification was published in the Gazette of India on 11-6-1955." The court further explained that the Act would apply only from the date of the notification, not from the date of the state legislature's resolution.

4. The retrospective application of the Estate Duty Act, 1953, to agricultural lands in Madras State:
The court discussed whether the Act could have retrospective effect, ultimately concluding that it could not. The court stated, "There is nothing in the Act to make the operation of the Act retrospective either by express words or necessary implication to a date earlier than the date of the publication of the notification under S. 5(2)." The court also referenced principles from statutory construction, noting, "Amendatory statutes are subject to the general principles discussed elsewhere herein relative to retroactive operation. Like original statutes, they will not be given retroactive construction, unless the language clearly makes such construction necessary."

Conclusion:
The court answered the question in the negative, determining that estate duty could not be levied on the agricultural lands in Madras State because the deceased died before the relevant notification was published. The applicant was entitled to a rebate of duty concerning the value of the agricultural lands. The court concluded, "The question referred to us is answered in the negative. The applicant will be entitled to his costs. Counsel's fee Rs. 250/-."