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TMI Blog1997 (11) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... n 62-A of the said Act, the President was pleased to direct all the Municipal Committees in the state of Punjab to impose Urban Development Cess on the sales/purchase of kapas (raw cotton), Narma and oil seeds made within the respective Municipal Areas at the rate of 0.24 per cent ad valorem with immediate effect . Pursuant thereto, a Memo was issued on 5th December, 1990 by the appellant to Municipal Corporations, Municipal Committees and Notified Area Committees. It noted that the appellant had issued the notification for imposition of the cess on sales and purchases of kapas, narma and oil seeds to compensate for the loss likely to be suffered on account of the abolition of octroi. The Memo gave directions in regard to the manner in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y passed by the Committee as if the proposal was sanctioned in accordance with the procedure contained in section 62 . Section 62, sub-sections (1), (10) and (12) read thus: 62. Procedure to impose taxes. - (1) A Committee may, at a special meeting, pass a resolution to propose the imposition of any tax under section 61. Xxx xxx xxx (10) (a) When a copy of order under sub-section (6) and (7) has been received, or (b) When a proposal has been sanctioned under sub-section (8) the State Government shall notify the imposition of the tax in accordance with such order or proposal, and shall in the notification specify a date not less than one month from the date of notification, on which the tax shall come into fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it has been imposed. Alteratively, if the Municipal Committee has failed to act as required by an order under sub-section (1) of Section 62A and the State Government has imposed the tax under subsection (3) thereof, the provisions of Section 62(12) would then operate because an order passed by the State Government under Section 62A(3) operates as if it were a resolution duly passed by a Municipal Committee. In the instant case, the order dated 30th November/3rd December, 1990 was passed under section 62A(1). The Municipal Committees failed to impose the cess in pursuance thereof. The State Government, thereafter, did not impose the cess under the provisions of Section 62A(3)). There was, therefore, no imposition of the cess, and its re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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