(1) The Puducherry Municipal Decree (Levy and Validation of Taxes, Duties, Cesses and Fees) Ordinance, 1973, is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act as if this Act was in force on the date on which such thing was done or action taken.
______ STATEMENT OF OBJECTS AND REASONS FOR ACT 1 OF 1973 Under the Municipal Decree dated 12-3-1880 which continues to be in force by virtue of section 4 of the Puducherry (Administration) Act, 1962 (Act No. 49 of 1962), the municipalities in the Union territory of Puducherry have been levying various taxes, duties, cesses and fees in exercise of the powers conferred on them under article 52 read with article 46 and 47 of the said Municipal Decree.
The High Court at Madras in Writ Petition No. 244 of 1971 (P) held that the Mahe municipal council had no power to provide for the levy of impugned tax and even otherwise, after the Puducherry General Sales Tax Act, 1967 no such powers are available to the municipal council as that subject has been legislated upon by a competent legislature and the municipal council cannot, therefore, invoke the Municipal Decree of 12-3-1880 and impose such a levy. Basically, an identical view was expressed by the High Court in Writ Petition No. 3433 of 1970 (P).
For validating the taxes etc., which have been levied under the Municipal Decree from 16-8-1962 upto now, it is proposed to over-ride section 7 of the Puducherry (Administration) Act, 1962 and to provide expressly that any taxes, duties, cesses and fees which the legislature of the Union territory of Puducherry may levy, may also be levied for the purposes of the Municipal Decree, in accordance with the provisions of the Municipal Decree and to validate the levy, assessment and collection of such taxes, duties, cesses and fees from 16-8-1962 upto now.
This Bill seeks to achieve the above objects.
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