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1. What is challenged in this petition under Article 226 of the Constitution is order dated 31/5/2003 passed by the State Government confirming the order dated 17/4/2002 passed by the Collector, Kheda upholding the action of the Municipality in revising the assessment for the purpose of levy and collection of property tax, water tax, drainage tax and education cess on the basis of the resolutions passed by the Administrator of the Dakor Municipal Borough on 30/3/2001 at Annexure 'A' (colly.).

2. By resolution No.91 dated 30/3/2001 the Administrator of the Municipal Borough resolved to follow necessary legal procedure for revision of assessment at the interval of four years as per the provisions of Section 105 of the Gujarat Municipalities Act, 1964 (hereinafter referred to as 'the Act'). By resolution No.92 the Administrator resolved to collect education cess as stipulated in Section 12 of the Gujarat Education Cess Act,1962 (hereinafter referred to as the 'Cess Act'). By resolution No.97 the Administrator resolved to levy and collect water tax at a rate higher than erstwhile rate. By resolution No.98 the Administrator resolved to levy and collect drainage tax and special drainage tax at a rate higher than erstwhile rates.

4. So far as the first contention is concerned, the same is thoroughly misconceived because in view of the provisions of the Gujarat Education Cess Act, 1962, tax shall be levied and collected with effect from the 1st day of April, 1970 on lands and buildings situated in an urban area at the rates stipulated in Section 12. Sub-clauses (a) and (b) lay down the formula containing rates of tax depending on the annual letting value of the concerned properties. Rates of education cess as contained in resolution no.92 dated 30/3/2001 are exactly the same as provided in the aforesaid provisions of Section 12 of the Education Cess Act. Since Section 15 of the Cess Act itself requires the local authority to levy and collect the education cess on the properties at the rates stipulated in Section 12 and there is no other provision in the Education Cess Act requiring any approval of the State Government before a municipal borough starts levying and collecting education cess, there is no substance whatsoever in the first contention raised on behalf of the petitioner.

5. Coming to the second contention -

5.1 Similarly there is no provision in the Education Cess Act or in the Gujarat Municipalities Act, 1963 requiring municipal borough to afford any hearing to any resident before levying and collecting education cess. Therefore the contention that the hearing was required to be afforded is also misconceived. As per settled legal position, before exercising any legislative power like imposing any tax, there is no duty cast on any authority to afford hearing to the persons affected or likely to be affected by such levy of tax.

"Provided that where a local authority is not for the time being levying a property tax or where a local authority has made a default in the collection of the tax or payment thereof to the State Government, the State Government may by order direct that the tax shall be collected by the Collector".

Thus, if the local authority commits default in levying and/or collecting the education cess as mandated under Section 12 of the Education Cess Act, the State Government may direct the Collector to collect the education cess and where such a direction is issued for collecting education cess by Collector, then only the provisions of Rule 3 of the Gujarat Education Cess Rules would apply. It appears that provisions of Section 15 of the Education Cess Act were not brought to the notice of the learned Single Judge. May be the Talod municipal borough in that case might have committed default in levying and/or collecting education cess and a direction might have been issued under clause (b) of Section 15(1) of the Education Cess Act. Be that as it may, in our considered view the provisions of Rule 3 do not apply where the municipal borough itself is levying the property tax and, therefore, Section 12 of Education Cess Act would automatically apply.