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Issues:
The issues involved in this case are the validity of the licence fee levied by 'The City Corporation of Calicut' for the use of land or premises for soaking coconut husks. Judgment Details: The respondents challenged the legality of the licence fee levied by the Corporation, contending that no special benefit was conferred for collecting the fee, and that the relevant provisions of the Act did not enable the Corporation to levy such a fee. Alternatively, they argued that if the fee was considered a tax, it was beyond the Corporation's taxing powers. The High Court held that the levy of the licence fee was not legal as it did not confer any special benefit on the petitioners. It also ruled that the Corporation did not have the power to levy it as a tax. Consequently, the High Court allowed the writ petitions, quashed the notices, and dismissed the impugned notices. The appellant-Corporation justified the fee as a licence fee or as a tax, arguing that recent court decisions showed a shift in the traditional view of fees, emphasizing that a direct quid pro quo was not necessary for a fee. They contended that the Corporation provided various services to the residents, including scavenging services and cleanliness operations, justifying the levy of the fee. The Supreme Court, applying the principles established in recent decisions, found that the Corporation was providing general services to the residents, including maintaining cleanliness to make the habitation tolerable. Therefore, the levy of the licence fee as a fee was deemed justified, as the residents benefited from the services provided by the Corporation. As a result, the Supreme Court allowed both appeals, setting aside the decisions of the Single Judge and the Division Bench, and dismissed the writ petitions filed by the petitioners.
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