KOTTAYAM MUNICIPALITY Vs. TRADING CORPORATION LTD

JUDGEMENT

(1.) This is an appeal by the Municipal Council, Kottayam, against the dismissal, by both he subordinate courts, of their suit for recovery of professional by both the subordinate courts, of their suit for recovery of professional tax from the respondent herein.

(2.) According to the Municipal Council, the respondent company was carrying on business during the two half-years of the year 1123 and inspite of demands made by them for paying the amount of professional tax properly levied upon them after complying with all the formalities required under the Act and the Rules, the respondent has not paid the amount.

(3.) The substantial defence that appears to have been raised in both the courts on behalf of the respondent is that in response to the notice, Ext. A, issued by the Municipal Council, they sent the balance sheet of the company for the year in question, Ext. C. Having accepted the said balance sheet the Municipal Council erred in levying professional tax on the basis of R.18 (1) (b) of Schedule II of the Travancore-District Municipalities Act, Act XXIII of 1116. It was the defence of the respondents that the Municipality has no power to make the assessment on the basis of the turn-over for the corresponding half-year of the previous year.