MARUTHI MEDICAL HALL Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The 7 petitioners in this writ petition are the owners of Medical Stores situate'in Armoor Taluk of Nizamabad Dist. These petitioners prayed for issue of a writ of mandamus declaring the action and the proceedings of respondent No. 3 i.e., the Gram panchayat, Armoor, represented by its Secretary, in levying the licence fee in pursuance of the proceedings in File No. 734/80A-I and its consequent notice dt. 21-10-1980 as bad, illegal and void and to set aside the same.

(2.) The facts as narrated are common to the case of all the petitioners and may be referred to in brief. The petitioners and engaged in the business of Medical Stores from 1964 onwards. They haveobtained licences as required under the Drugs and Cosmetics Act. They are paying professional tax to the 3rd respondent under the provisions of A.P. Gram Panchayats Act, 1964 in proportion to the incomes derived by them. It was only in the year 1980 that the petitioners were served with the notices in file No. 734/80-A-1, dt. 21-10-1980 on 27-11-1980 purporting to have been issued under sections 124, 125 and 131 of the A.P. Gram Panchayats Act, 1964, levying licence fee on the petitioners' medical shpps, at the flat rate of Rs. 100/- each. It is this levy of the licence fee which is challenged in this writ petition as being illegal and void, and ultra vires the authority of the 3rd respondent. It seems that the petitioners made some representations to the 3rd respondent and also filed a revision before the 1st respondent which has been of no avail.

(3.) The impugned notices have been issued under the heading "sub : Notice issued levying the license fee on trade and business under Sections 124, 125, 131 of Andhra Pradesh Gram Panchayats Act, 1984". They also refer to a resolution passed by the Gram Panchayat in its ordinary meeting on 29-7-1980. The sum and substance of the notices is that as per the resolution of the ordinary meeting of the Gram Panchayat dt. 29-7-1980 objections were called for levying licence fee on trades and business running within the area of Armoor. Since no objections were received, the petitioners herein are required to pay licence fee of Rs. 100/- each within 15 days failing which they are threatened with stopping of their business and recovery of the licence fee by filing cases in the court of law.