ASSAINAR Vs. STATE OF KERALA

JUDGEMENT

(1.) When C.M.P. 2683/91 came up for orders, learned counsel appearing on either side wanted the Original Petition itself heard and disposed of. Accordingly I heard them at length. I am disposing of the Original Petition.

(2.) Petitioners, 69 in number, are working in Chapparapadava High School, situated within the jurisdiction of Chapparapadava Panchayat, the third respondent. Panchayat resolved to levy profession tax in accordance with the Panchayat Act and the Rules. The rates of tax are specified in R.3 of the Kerala Panchayat (Profession tax) Rules, 1963, hereinafter referred to as "the Rules". Executive officer of the Panchayat, 4th respondent, issued Exhibit P2 order to the headmaster of the school seeking to levy profession tax assessed at the rates which existed prior to the notification issued by Government dated 17-5-1990. Petitioners preferred objections to that course. Fourth respondent rejected those objections by Exhibit P4 order. Hence this Original Petition.

(3.) Under the Panchayat Act as per S.69 Profession tax shall be levied every half year in every Panchayat Area on every person who in that half year exercises a profession art or calling or transacts any business or holds any appointment public or private within such Panchayat area for not less than sixty days in the aggregate. The Profession tax shall be levied at such rate as may be fixed by the panchayat not exceeding the maximum rate prescribed. The Rules prescribe the maximum rate of half yearly tax. As per the Rules in force prior to 17-5-1990 the maximum rate fixed was Rs. 125/- and the minimum Rs. 4-30. This rate was changed by S.R.O.674/90 dated 17-5-1990. As per this the minimum was fixed at Rs. 10/- and the maximum at Rs. 1250/-. Rules further provides that it is the responsibility of the panchayat to determine the tax leviable on each class within the maximum specified. The Executive Authority shall have to assign to a person the class in the scale appropriate to the half yearly income of such person as estimated by him. The panchayat had decided to impose profession tax half yearly at the maximum rate. When the maximum rate was changed by amending R.3 of the rules with effect from 17-5-1990 the maximum rates payable by petitioner who came within different slabs were reduced. Without noting this change in the maximum rate leviable the panchayat issued Ext. P2 notice requiring the petitioners to pay higher amounts. This claim was objected to by the petitioners by filing objections. Executive Officer rejected the objections and proceeded to take coercive steps for realising the amounts claimed as per the unamended Rules.