India legislature of a State, may, by law authorize the Municipality to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits as may be specified in law. Thus, according to the petitioners the law authorizing the municipality to levy, collect and appropriate tax must have been passed by the legislature of the State and that the legislature itself must prescribe procedure and the limits. It is the case on behalf of the respective petitioners that for the purpose of Article 243 X of the Constitution of India, the law will not include rules, regulations, notifications etc. According to the petitioners, no limits are prescribed in Section 141 of the BPMC/ GPMC Act for property tax on land as the State legislature has prescribed the limits in Section 141 B of the GPMC Act for property tax on building only. Thus, it is the case on behalf of the petitioner that with respect to the property tax on land no limits are prescribed and therefore, the levy of property tax on land is violative of Article 243 X of the Constitution of India. However, on fair reading of Article 243 X of the Constitution of India, it appears that said Article provides that the legislature of a State may by law authorize the Municipality to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits as may be specified in law. Thus, it is enabling provision to empower the municipality to provide funds through taxes, tolls etc. It does not provide as to which procedure has to be laid down and what limits are required to be specified. It also does not prescribe any maximum limit. The Constitution only provides only an outline of the Scheme for levy and imposition of tax, fees.
