' Ail MUHAMMAD V. AKHUND, J.-The petitioner, Mirpurkhas Sugar Mills Limited, is located in Union Council Balochabad, Taluka Mirpurkhas, District Tharpakrar.
2. On 20th August, 1979, the Union Council Balochabad submitted its revised budget, incorporating taxation proposals, to the Deputy Commissioner, Tharparkar. On the same day, that is, 20th August, 1979, the Administrator, Balochabad Union Council, issued a public notice under rule 4 of the West Pakistan Local Councils (Imposition of Taxes Rules, 1961, hereinafter referred to as the rules, that Octroi tax was proposed to be levied in the Mirpurkhas Sugar Mill area and invited objections and suggestions in respect of the proposed, taxation to be lodged before 22nd September, 1979. On 28th August, 1979, a Sub-Committee of the Union Council was formed to hear objections and suggestions against taxation proposals on the 23rd September, 1979, at 11.00, a. m. The General Manager, Mirpurkhas Sugar Mills Limited, was one of the members of the Sub-committee. On 23rd September, 1979, when the Sub-Committee was convened, the General Manager of the petitioner did not attend the meeting. Rest of the five members of the Sub-Committee unanimously recommended the taxation proposals. The Deputy Commissioner, Tharparkar, by order dated 17th October, 1979, approved the revised budget containing taxation proposals. On the 18th of October, 1979, he issued a notification under rule 7 of the rules read with section 4- of the Sind Local Government Ordinance, 1979. According sanction for imposing Octroi Taxes on the Mirpurkhas Sugar Mills Area, on the items, and, at the rates, specified in the Schedule. The Notification also defined Octroi limits within which the tax was imposed. This Notification was published in the Sind Government. Gazette on 15th November, 1979.
3. In this petition, the petitioner has challenged legality of the notification and authority or power to impose or levy Octroi Tax on behalf of the Union Council.
4. Union Councils were first constituted under Article 9 of the Basic Democracies Order 1959 (P.
0. 18 of 1959). This order was repealed by section 4 of the Sind People's Local Government Ordinance, 1972, Sind Ordinance No, II of 1972. Under clause (b) of subsection (2) of section 4, as amended by the Sind People's Local Government (Amendment) Act, 1976, (Act XII of 1967), which reads as follows, the Union Council constituted under the Basic Democracies Order, 1959, were deemed to be the People's Local Councils: "All Union Councils, District Councils, Town Committees, Municipal Committees and Karachi Municipal Corporation existing immediately before coming into force of this Ordinance, shall be deemed to be the People's local Councils and the Officials or Administrators performing the duties and functions of such Councils shall continue to perform such duties and functions until newly elected Councils assume Office in accordance with the provisions of this Ordinance; provided that Government, may, in the meantime, remove or transfer any such official or Administrator and appoint, any official to be Administrator or official of such Council or make any other arrangement for running of the affairs of the Council."
' The Sind People's Local Government Ordinance, 1972, was repealed on 25th July, 1979, by the Sind .
Local Government Ordinance, 1979 (Sind Ordinance XII, of 1979), which under clause (b) of subsection (2) of section 120 provided that all union councils existing immediately before the coming into force of this Ordinance shall be deemed to be the councils under the Ordinance.
Clause (15) of section 3 of the Ordinance XII of 1979, defines Council to include Union Council.
Section 4 of this same Ordinance XII of 1979, provides that;- "A council constituted under this Ordinance for any local area shall, unless Government, by notification specifies otherwise, be the successor of the local council or local councils for that area existing immediately before the coming into force of this Ordinance."
' All this shows that Union Councils exist till this day: Balochabad, in District Tharparkar, is one such Union Council.
5. Union Council was given power under Article 60 of the Basic Democracies Order, 1959, to levy the taxes mentioned in the Fifth Schedule with the previous sanction of the Commissioner. After the repeal of the Basic Democracies Order under the Sind People's Local Government Ordinance, 1972, the Union Council did not have the power to levy the taxes. Under section 71 of the 1972 Ordinance, it was the corporation, a People's District Council, a People's Municipality and a People's Town Committee which was given power to levy taxes with the previous sanction of the Government.
Under the Ordinance in force, namely, the Sind Local Government Ordinance, 1979, in section 60 thereof, the Union Council is again authorised to levy taxes mentioned in Schedule V.
' But the Union Council can levy the taxes only with the previous sanction of the Commissioner or his delegatee the Deputy Commissioner, is no more a requirement of law, section 60 of 1979 Ordinance, is reproduced below:- "Section 60(1).-Subject to subsection (2) a Council may with the previous sanction of Government levy, in the prescribed manner, all or any of the taxes, rates, tolls and fees mentioned in Schedule V: ' Provided that where a tax, rate or toll which is levied as a cess, tax or surcharge by Government such tax, rate or toll shall not be more than that levied by Government.
(2) No Taluka Council shall have the power to levy any tax, toll or fee. And such council shall be financed in such manner as may be prescribed.
(3) All taxes, rates, tolls and fees levied by a council shall be notified in the prescribed manner and shall, unless otherwise directed by the Government, be subject to previous publication.
(4) Where a proposal for the levy or modification of a tax, rate, toll or fee is sanctioned, Government shall specify the date on and from which such tax rate, toll or fee or the modification shall come into force."
' Here, Taluka Council is not empowed to levy taxes. Union Council is authorized to levy taxes with the previous sanction of the Government, and not of the. Commissioner or the Deputy Commissioner. The taxes are subject to previous publication. Government has to specify the date on which such taxes are to come into force. Schedule V, Part III, of the 1979, Ordinance. Specifies taxes which Union council can levy and one such tax, at item No, 5, is- "Tax on import of goods for consumption, use or sale in the local area (by Union Council only)."
6. The Sind Local Government Ordinance, 1979, came into force on 25th July 1978, the taxation proposal in this case are dated 20th August, 1972, and notification imposing the Octroi tax is dated 15th-November, 1979, which means after the 1979 Ordinance, came into force. The notification of imposing Octroi tax is illegal, because Balochabad Union Council has not imposed these taxes with the previous sanction of the Government.
7. It was contended by the petitioner's counsel that imposition of the Octroi Tax on Sugar Mill area is in violation of section 71 of the Sind People's Local Government Ordinance, 1972. This Ordinance is repealed by the Sind Local Government Ordinance, 1979, which in section 120 thereof saved only:- "(a) every 'thing done, action taken, obligation, liability, penalty, punishment incurred, inquiry or proceedings commenced .... Power conferred .. . . Rule made and order issued under any of the provisions of repealed enactments, if not inconsistent with the provisions of this Ordinance, continue in force, and so far as may be, be deemed to have been respectively done, taken, incurred conferred, granted, made or issued under this Ordinance.
(b) all Union Councils . . . . Existing immediately before the coming into force of this Ordinance shall be deemed to be the councils . "
Section 71 of 1972 Ordinance is in no way saved by section 120 of the 1979, Ordinance. Section 71 of 1972 Ordinance, did not authorize Union Councils to levy taxes, while 1979 Ordinance, in section 60 thereof has empowered Union Councils to levy taxes. Question of violation of section 71 of 1972 Ordinance, therefore, does not arise.
8. Petitioner's counsel has further argued that the notice issued by the Union Council Balochabad is not in accordance with rule 4 of the rules. Under rule 4, Public notice of preliminary taxation proposals, is to be published after the annual budget or the revised budget has been sanctioned. It is true that in this case it was not done. On 20th August, 1979, the revised budget was submitted to the Deputy Commissioner and on the same day public notice of taxation proposal under rule 4 was published, though revised budget was sanctioned on 17th October, 1979. As per the rule, the public notice ought to have been given after the 17th October, 1979. But all this is not relevant here, because there is no provision of budget of the Union Council in the 1979 Ordinance. All that is necessary under subsections (3) and (4) of section 60 of the 1979 Ordinance, is that all taxes are to be notified and are subject to previous publication and it is the power of Government to specify the date on which the taxes shall come into force.
9. An objection was taken to the impugned notification that the taxes should have come into force on the 1st day of January, or 1st day of July, next following as may be specified in the notification, as provided by sub-rule (2) of rule 7 of the Rules. But sub-rule (2) of rule 7 was amended on 6th December, 1961, where by the words "first day of January, and not first day of July, next following" were omitted, and substituted by the words "such date". The result is that taxation proposals notified may come in force from the day specified in the notification.
10. In the result, impugned notification imposing Octroi tax in the local area of Union Council Balochabad, without previous sanction of the Government, is illegal and is quashed. There is no power vested in respondent No, .1 to impose any tax. Union Council has got the power to levy taxes with the previous sanction of Government. Union Councils are in existence with Corporation, Municipal Committees, Town Committees, District and Taluka Councils.