1. ' The Commissioner Hyderabad Division in exercise of his powers under Rule 7 of the West Pakistan Municipal Committees (Imposition of Taxes) Rules 1960 revised the existing Octroi rates in respect of certain articles chargeable by Municipal Committee Shehdadpur and issued a Notification bearing No, 970-BD/65, dated 21-8-1971. In the said Notification under item No,246 Rs,5 per show as cinema tax was imposed. No such tax was in existence before the issue of the said Notification. The Notification further provided that the octroi at revised rates will take effect from 30-9-1971 positively.
2. ' The applicants herein are the owners of a cinema house situated at Shehdadpur known as Shaheen Talkies. They filed a suit in the Court of Senior Civil Judge at Sanghar (1st Class Suit No, 116 of 1973) against the respondents seeking a declaration that the cinema tax imposed through the Notification mentioned above is illegal and without any jurisdiction. The suit was contested by the defendants (respondents herein).
3. ' The trial Court on the basis of pleadings framed 4 issues and both the parties led evidence. The applicants did not succeed in the suit as the Trial Judge dismissed the suit by his judgment passed on 23-2-1976. The Trial Judge held that the Municipal Committee was competent to levy a tax on cinema shows subject to the approval of the Commissioner of the Division under section 33 of the Municipal Administration Ordinance, 1960 read with West Pakistan Municipal Committees (Imposition of Taxes) Rules, 1960 but due to an error tax on cinema shows was included in the notification meant for revised octroi rates of the Municipal Committee Shehdadpur. Such an error will not render the imposition of the tax as illegal.
4. ' The applicants preferred an appeal against the judgment and decree referred to above which came to be heard by the Additional District Judge 3anghar who decided it on 30-10-1982. The Appellate Judge for his own reasons concurred with the conclusions of the Trial Judge and dismissed the appeal. The appellants have by this application under section 115, Civil Procedure Code impugned the two decisions of the lower Courts.
5. ' Mr. Gulzar Ahmed, Advocate for the applicants, mainly contended .Hat it is apparent on the face of record that both the Municipal Committee and the Commissioner Hyderabad Division were considering revision of octroi Sates on certain articles and not imposition of a new tax on cinema shows. The ax on cinema shows cannot be termed as octroi and there was no question of evasion of such tax as prior to the Notification such tax was never imposed. -le therefore, contended that the whole exercise culminating in issuance of the notification, the subject-matter of the suit, is without notice to the applicants and public at large and is without any lawful authority.
6. ' Mr. Abdul Latif Memon, Assistant Advocate-General Sindh, generally supported the reasoning given by the two Courts below.
7. A Municipal Committee with the previous sanction of the Government under section 33 of the Municipal Administration Ordinance, 1960 can levy in prescribed manner, taxes, rates, tolls and fees mentioned in its Third Schedule. Item No,11 mentioned in the Third Schedule makes a provision for imposition of tax on cinemas, dramatic, theatrical shows and other entertainments and amusements. No ,doubt a Municipal Committee as provided by section 33 of the said Ordinance can impose tax on cinema shows subject to the previous sanction 'of the Commissioner of a Division, as a delegate of the authority exercisable by Government. But the levy of such tax can only be made in a prescribed manner. The West Pakistan Municipal Committees (Imposition of Taxes)
8. Rules, 1960, lays down the procedure in this behalf. According to the rules a Chairman of a Municipal Committee if he considers it necessary to change tax structure to meet the requirements of the Committee he has to formulate tax proposals and incorporate the same in an appendix to the budget for publication as preliminary taxation proposal hearing of objections and suggestions to the preliminary taxation proposals, finalisation of taxation proposals and sanction of such proposals. It will thus be seen that imposition or revision of tax, rate, toll or fee can only be done by making it a part of annual budget proposals and can only be enforced after the same are duly approved by Government or any other authority having delegated powers.
9. ' In the present case the respondents (defendants) had examined one Islamuddin, a Shop Inspector of Shehdadpur Municipal Committee, dealing with the taxes on that date. According to his statement cinema show tax was proposed at the rate of Rs,10 per show in the year 1967.
10. Necessary compliance of the rules was made by giving it a wide publicity and inviting objections.
11. He further stated that the proposal was meant for the fiscal year of 1967 but it was not passed in that year. After the notification notice was served on the applicants and publicity given to it.
12. Ultimately, according to him, the tax was sanctioned in the year 1971.
13. ' It will be seen from above that there was not tax proposal in terms of Rule 3 of West Pakistan Municipal Committees (Imposition of Tax) Rules, 1960 including levy of tax on cinema shows in the budget proposal for the year 1971-72. The basis of the notification as is stated by the witness Islamuddin was that it was included for the budget proposal submitted in the year 1967 but was not approved during that year. According to the rules the taxation proposals can only form a part of the annual or revised budget of Municipal Committee. In the year 1971 admittedly it was not included in the budget proposals of that year. The Commissioner as a delegate of the powers of the Provincial Government under Rule 7 could only accord his approval to the budget proposals of that year submitted to him under the said Rules. There is no other power available to the Commissioner of a Division under the Municipal Administration Ordinance, 1960 to approve any tax in any other manner.
14. From the admitted facts mentioned above it is clear that Municipal Committee, Shehdadpur had not even proposed the levy of tax on cinema shows for that year and imposition of such tax was not included in the annual budget proposals. By now it is settled law that if a statute requires a particular thing to be done in a certain manner it can only be done in that manner and in no other manner. Section 33 of the Municipal Administration Ordinance, 1960 empowers a Municipal Committee to impose burden on citizens in the form of a tax, toll, fee etc. But can only be done by following the prescribed procedure provided in the West Pakistan Municipal Committees (Imposition of Tax) Rules, 1960. This part of the Ordinance being in nature of a fiscal statute can only be strictly construed and in case of any doubt it is to be resolved in favour of the citizen.
15. For the reasons mentioned hereinabove tax on cinema shows as imposed by Municipal Committee, Shehdadpur with effect from 31-9-1971 under the Notification in question is illegal. Both the Courts below have exercised their jurisdiction illegally and judgments/decrees passed by them are set aside. This revision application is allowed with no order as to the costs and as its consequence the suit of applicants is decreed.