MERCHANTS ASSOCIATIONSHERTHALLAI Vs. SHERTHALLAI MUNICIPALITY

JUDGEMENT

(1.) The petitioners are stated to be dealers in textile goods within the limits of the Sherthallai Municipality, the respondent in the writ petition.

(2.) In terms of the bye laws of the respondent Municipality published on 22-2-1966 traders are required to take out licence for "storing of textiles", the licence fee prescribed being Rs. 100/- for storing goods beyond the value of Rupees 1,00,000/-.

(3.) The question whether the collection of licence fee from dealers in textile goods was supported by quid pro quo in the shape of conferment of a special benefit on the class of licensees to which they belonged had come up for consideration before this Court in O. P. No. 2823 of 1972 filed by two dealers carrying on their business within the respondent Municipality. The Division Bench, before which it came up for bearing, in its judgment dated 6-3-1975 (reported in 1976 KLT 199 : (1976 Tax LR 1698)) held as follows (at p. 1701 of Tax LR) :--