BHARAT SANCHAR NIGAM LTD. KOTTAYAM, REPRESENTED BY ITS GENERAL MANAGER Vs. SECRETARY TO GOVT. DEPARTMENT OF LOCAL SELF GOVERNMENT, GOVERNMENT OF KERALA, THIRUVANANTHAPURAM

JUDGEMENT

(1.) Chempu Grama Panchayat issued notices to Bharat Sanchar Nigam Ltd.(BSNL for short), a Government company as defined under the Companies Act, which is engaged in providing telecom services, demanding profession tax. Thereupon BSNL has filed this writ petition for a declaration that it is not liable to pay profession tax to any one of the Panchayats in the State of Kerala merely because its telephone exchanges are functioning within the Panchayat areas. When the writ petition came up for consideration, the counsel for the petitioner placed reliance on the judgment of this Court in Indira Vs. Kunhimangalam Grama Panchayat (2012 (4) KLT 914) and contended that since BSNL is not transacting any business as defined in Rule 2(c) of the Kerala Panchayat Raj (Profession Tax) Rules, 1996 (hereinafter referred to as the 'Rules' for short), it is not liable to be taxed.

(2.) The learned Single Judge doubted its correctness of the judgment in Indira (supra) and order dated 28.6.2016 was passed referring the writ petition to be heard by a Division Bench. It is, accordingly that this case is listed before us.

(3.) We heard the learned senior counsel for the petitioner, learned Senior Government Pleader appearing for respondents 1 and 2 and learned standing counsel appearing for the third respondent Panchayat.