BHASKARA REDDIAR Vs. ALLEPPEY MUNICIPALITY

JUDGEMENT

(1.) O. P. No. 40 of 1955 is by the managing partner of a picture-house and theatre styled 'seematty Talkies'. The petition is to prohibit the Alleppey Municipality from levying entertainments tax on the petitioner in respect of entertainments conducted in his picture-house which is situated within the Municipality. O. P. No. 41 of 1955 is by the proprietors of a Picture-house and theatre styled 'coastal Talkies' situate within the limits of the Alleppey Municipality and the relief asked for is the same. O. P. No. 42 of 1955 is for the same relief by the owner of the picture-house and theatre called 'sree Krishna Talkies' also situate within the limits of the Alleppey municipality. O. P. No. 43 of 1955 is by the managing proprietor of 'raja Mahal theatre' situate within the limits of the Kottayam Municipality. O. P. No. 44 of 1955 is by the proprietor of the 'star Theatre' also situate within the kottayam Municipality. O. P. Nos. 43 and 44 of 1955 are for the same relief as that claimed in O. P. Nos. 40 to 42 of 1955. O. P. No. 138 of 1955 is by the proprietor of the 'golden Talkies' Vaikom situate within the limits of the vaikom.

(2.) O. P. Nos. 40 to 42 of 1955 may be dealt with together. The main allegations in the affidavit filed along Municipality and the prayer in the petition is the same as that contained in the other O. Ps. with O. P. No. 40 of 1955 are the following:- The Travancore-Cochin Local Authorities entertainments Tax Act VI of 1951, came into force on 10. 12. 1951. Before that act came into force the Alleppey Municipality has been levying tax on entertainments under S. 77 (g), 122 and 123 of the Travancore District municipalities Act, XXIII of 1116. Ss. 122 and 123 of that Act were repealed by s. 13 of the Local Authorities Entertainments Tax Act, VI of 1951. S. 12 of that act provides that the local authority to which the Act applies shall, before levying entertainments tax under the Act, make bye-laws, not inconsistent with the Act or Rules made thereunder, in respect of the matters mentioned in the section. Sub-s. (3) of S. 12 provides that the bye-laws shall have effect when they have been approved by Government and published in the Gazette. The alleppey Municipality has not till now made any bye-laws as required by S. 12 of the Act VI of 1951. The Municipality has no right to levy and collect entertainments tax before making bye-laws as required by the section. Although s. 77 (g) of the District Municipalities Act which empowered the Municipality to levy tax on entertainments was not expressly repealed by Act VI of 1951 the municipality has no power, after the coming into force of the latter Act, to levy and collect entertainments tax by virtue of S. 77 (g) of the District municipalities Act. Representation made by the petitioner to the Municipality objecting to the levy and collection of entertainments tax by the Municipality met with no effect. The levy of entertainments tax by the Municipality contravened the provision of Arts. 19 (g), 31 (1) and 276 of the Constitution. To the same effect are the allegations in the affidavits filed along with O. Ps. Nos. 41 and 42 of 1955.

(3.) PART III of the District Municipalities Act, XXIII of 1116, containing Chapter VI relates to taxation and finance. The first section of that Chapter, i. e. S. 77, confers on a Municipal Council the power to levy tax. The Section reads: "every Municipal Council may levy (a) property tax; (b) profession tax; (c) a tax on carriages and animals; (d) a tax on carts; (e) tolls on vehicles and animals entering the municipality; and may, with the previous sanction and subject to such Rules as may be framed by Our Government, levy - a tax on advertisements; and a tax on entertainments". S. 78 provides that a resolution by a Municipal Council determining to levy a tax or toll shall specify the rate at which any such tax or toll shall be levied and the date from which it shall be levied. The section also prescribes the procedure to be followed by the Municipal Council in the matter. S. 79 provides that when the Municipal Council has passed a resolution under S. 78 a Notification to that effect shall be published in the Government gazette and also by beat of drum. Ss. 77 to 79 which deal with the general power of the Municipality to levy tax are followed by sections containing special provisions relating to particular kinds of taxes. Ss. 80 to 90 come under the heading 'property Tax'. Ss. 91 to 97 come under the 'profession Tax'. Ss. 98 to 104 deal with 'tax on Carriages and Animals'. Ss. 105 and 106 relate to 'tax on Carts'. S. 107 contains a special provision relating to the collection of tax under S. 98 or S. 105. Ss. 108 to 110 also contain special provisions relating to seizure of vehicles or animals. Ss. 111 to 115 deal with tolls while Ss. 116 to 120 relate to tax on advertisements. Ss. 122 and 123 deal with tax on entertainments and are given that heading. Ss. 124 and 134 contain certain general provisions regarding taxation and finance.