' SHEZADA MAZHAR, J.---Through this single order on the intend to dispose of three Writ Petitions bearing Nos.8698/13, 8358/1 and 8231 of 2013 as in all these petitions the petitioners have challenged the notification dated 21-6-2013 whereby the Administration of TMA, Sher Shah Town, Multan imposed 1% tax on the sales of animals in the cattle market, however the said tax is to be paid by the purchasers.
2. Learned counsel for the petitioner submits that the advertisement dated 21-5-2013 in "Daily Khabrin" whereby suggestions regarding imposition of tax on sales of animals in cattle market does not state that the said tax will be recovered from like purchaser and therefore the said advertisement is against Rule 3 of the Punjab Local Government (Taxation), Rules 2001. Learned counsel further submits that under section 116 of the Punjab Local Government Ordinance 2001, a council can impose tax, fees rates, rents tolls, charges, surcharges and levies as are specified in Second Schedule. Under Part IV of Second Schedule Town Council can impose fee on sales of animal in cattle markets. The impugned notification is also in violation of said clause and in this regard, he relied upon 2008 CLC 896 and 2007 CLC 587 and prayed that writ petition be accepted and impugned notification be set aside.
3. On the other hand learned counsel for the TMA raised objection on the maintainability of the writ petition on the ground that petitioner had an alternate remedy in the shape of appeal under section 190 of the Local Government Ordinance, 2001 read with Punjab Local Government Appeals Rules, 2002. On merits of the case learned counsel submits that the notification was issued after publication of advertisement in newspaper whereby suggestions/objections were called upon from public at large. No objection was filed at the relevant time. Further submits that respondent No,2 has already issued a corrected notification wherein the note regarding collection of fees from the purchaser has been omitted.
4. I have considered the arguments of the learned counsel for the parties.
5. It is not denied that Town Municipal Council had the power to impose fee as specified in second schedule. Section 116 states:- ' Taxes to be levied. (1) A Council may levy taxes, cesses, fees rates, rents, tolls, charges, surcharge and levies specified in the Ali t second Schedule. (X X X) * * Words "through" omitted Provided that the Government shall vet the tax proposal prior to the approval by the concerned Council.
' Provided further that the proposal shall ,be vetted within thirty days from the date of receipt of the proposal failing which it would deemed to have been vetted by the Government.
(2) No tax shall be levied without previous publication of the tax proposal and after inviting and hearing public objections.
(3) A Council may, subject to provisos of subsection (1), increase reduce, suspend, abolish (X X X) or exempt any tax.)*(XXX).
'Under Second Schedule Part IV enlists item on which Town Municipal can impose tax/fees etc. And at serial No,2 fee on sales of animal in cattle markets is mentioned. However said fee/tax can be imposed as per procedure given in Punjab Local Government (Taxation) Rules 2001. Rule 3 states as under:-
3. Preliminary taxation proposals----(1) While framing the annual budget or the revised budget of the Local Government the Executive District Officer (Finance and Planning) in case of District Government/City District Government, the Tehsil Officer (Finance) in case of Tehsil/Town Municipal Administration and Union Secretary in case of Union Administration shall review the financial position calls for any change in the tax structure, he shall draw up preliminary taxation proposals.
(2) There shall be a separate preliminary taxation proposal for each tax.
(3) Preliminary taxation proposals shall be framed in the form of a draft tax notification indicating the class of persons or category of property proposed to be taxed and the rate at which the tax is proposed to be levied.
(4) The preliminary taxation proposals shall be submitted for approval to.
(a) Zila Nazim by the EDO (Finance and Planning) through District Coordination Officer;
(b) Tehsil Town Nazim by the Tehsil/Town Officer (Finance) through Tehsil/Town Municipal Officer; and
(c) Union Nazim by the Union Secretary.
(5) The Nazim of the concerned Local Government may approve the preliminary taxation proposal with or without modifications.
6. Under the said rule it was necessary upon the respondent No,2 to indicate in the draft notification/advertisement the class of persons or category of property proposed to be taxed. A bare perusal of the advertisement placed as Annex-A at page 7 of Writ Petition No,8698 of 2013 that same does not contain the class of persons whereas in the impugned notification class of person was added at the end of the notification in the following terms:--
7. The above note makes the whole process illegal and against the Punjab Local Government (Taxation) Rules, 2001 which provides a complete procedure to be followed for the imposition of tax/fees etc. By the councils. It is necessary to mention here that the council for the TMA has placed on record the notification bearing No,453/Admn/TMA dated 27-7-2013 whereby they have removed the above mentioned note at the bottom regarding collection of the fee. From the purchasers. This amended notification is also an admission on the part of respondent No,2 that the earlier notification was against the law. This amended notification is not the subject matter of the present writ petitions, therefore I do not want to comment upon the legality or otherwise of the said notification.
The writ petitions are accepted and the impugned notification dated 21-6-2013 is hereby set aside with no order as to costs.