DEBABRATA BASU Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) These appeals at the instance of a number of petitioners are against the judgment passed by the Hon'ble Judge discharging the rules obtained by them.

(2.) All of them argued that the Act, being the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979, is ultra vires and as suit bad in law. Before dealing with the question it is convenient for us to state the provisions of the Act. We are not going to quote the whole Act, as it is, but we are only mentioning the main provisions of the Act against which the challenge was sought to be made. The preamble of the Act provides "for the levy and collection of tax on professions, trades, callings and employments for raising additional resources for the benefit of the State and for matters connected therewith or incidental thereto". The Act was promulgated, it got the assent of the Governor on March 31, 1979, and it came into force on and from April 1, 1979.

(3.) In so far as we are concerned in these appeals, all the petitioners are practising advocates enrolled under the Advocates Act, 1961, and entitled to practice in this court as well as in the Supreme Court. The definition of person has been given in Section 2(f) in the following terms : "A person means any person who is engaged in any profession, trade, calling or employment in West Bengal and includes........." Section 3 of the Act is the section for the levy and charge of the tax. It specifically provides that subject to the provisions of Article 276 of the Constitution of India, there shall be levied and collected a tax on professions, trades, etc., in accordance with the provisions of the Act. Section 3(2) provides that every person engaged in any profession, calling, etc., under one or the other of the classes mentioned in the second column of the Schedule shall be liable to pay to the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule. So far as the petitioners are concerned they fall under item 2 of the Schedule to the Act. Under Section 5(2) of the Act every person, as in these cases, the advocates engaged in the profession liable to pay tax under the Act, shall obtain a certificate of enrolment from the prescribed authority in the prescribed manner. In exercise of powers conferred by Section 25 of the Act, the West Bengal State Tax on Profession, Trade, Callings and Employments Rules were framed on March 31, 1979. In so far as the professional people are concerned they are required to apply for a certificate of enrolment in the manner prescribed in Rule 4(1) and the prescribed authority will issue a certificate of enrolment under Rule 4(4) in form II-A, wherein the amount of tax payable by the holder according to the Schedule, and the date by which it shall be paid will be mentioned, and such certificate shall serve as a notice of demand for the purpose of Section 10 (vide Section 5(5) of the Act). Section 10 provides that if an enrolled person fails, without reasonable cause, to make payment of any amount of tax within the time or date specified in the notice of demand the prescribed authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty not exceeding fifty per cent. of the amount of tax due. Under Section 11 all arrears of tax, penalty, interest and fees under the Act shall be recoverable as arrears of land revenue. In Section 14 of the Act provision has been made for appeal, revision and rectification of mistakes. Section 19 of the Act provides that any person or employer who, without reasonable cause fails to comply with any of the provisions of the Act or the Rules made thereunder shall be punishable with fine which may extend to five thousand rupees and where the offence is a continuing one, with a further fine which may extend to fifty rupees for every day during which the offence continues.