THUMPAMON GRAMA PANCHAYATH Vs. UNION OF INDIA

JUDGEMENT

(1.) A local authority has questioned the defiance of a medical polyclinic to pay the profession tax under the Kerala Panchayat Raj Act, 1994 (for short, 'the Act').

(2.) The Ex-Servicemen Contributory Health Scheme (for brevity, ECHS) has set up medical clinics in different parts of the country to provide health care to ex-servicemen. The said polyclinics are allegedly run by the Ministry of Defence, to provide free medical services and treatment to Ex-servicemen and their family members. A medical clinic was established on 1/11/2010 under the aforementioned scheme, at a place within the jurisdiction of the petitioner. The said clinic continues even today.

(3.) While so, the Panchayat issued a notice calling upon the second respondent, who was the person in charge of the ECHS Polyclinic, to submit details of the employees working in the said establishment as per Rule 14 of the Kerala Panchayat Raj (Profession Tax) Rules, 1996 (for short, 'the Rules'). The demand triggered a dispute between the local authority and the Polyclinic. The second respondent claimed that they are not liable to pay the profession tax demanded by the Panchayat, while the latter insisted that the clinic is exigible for the said tax. Due to the failure to submit returns as contemplated under Rule 14 of the Rules, Panchayat initiated a criminal prosecution against the second respondent. However, the prosecution remains in a state of suspense as the learned Magistrate called upon the petitioner to produce the sanction to prosecute the second respondent.