In Brief
An industrial development association challenged the imposition of taxes by a Zila Panchayat, arguing that their area was exempt under Section 12A of the U.P. Industrial Area Development Act, 1976. The Supreme Court held that mere declaration of an area as industrial development is insufficient; Article 243Q(1) of the Constitution requires a separate notification designating the area as an industrial township, with due consideration of statutory factors. Absent such a Constitutional notification, Panchayats retain full taxation authority. The court dismissed the appeal, finding the High Court's reasoning sound.
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