1961 (1) TMI 94 - SC - Indian Laws

Summary

Issues Involved:
1. Legality of the publication of the resolution by the Commissioner instead of the Municipal Council.
2. Compliance with the time period for objections as specified in the notification.
3. Whether the appellants were carrying on a profession within the meaning of the Act.
4. Applicability of the profession tax to a religious trust.

Issue-Wise Detailed Analysis:

1. Legality of the publication of the resolution by the Commissioner instead of the Municipal Council:
The appellants contended that the publication of the resolution was not in accordance with Section 78 of the Travancore District Municipalities Act, as it was published by the Commissioner and not the Municipal Council. The court examined Section 16 of the Act, which outlines the functions of the executive authority, i.e., the Commissioner. It was determined that the Commissioner was acting within his powers to give effect to the resolutions of the council and perform duties imposed by the Act. Therefore, the publication by the Commissioner was deemed legal.

2. Compliance with the time period for objections as specified in the notification:
The appellants argued that the notification period of "within 30 days" did not comply with the requirement of a clear one-month period as stipulated in Section 78 of the Act. The court acknowledged that the phrase "not being less than one month" implies a clear one-month period, excluding both the first and last days. However, the court also considered the object of the provision, which is to provide reasonable time for objections. It was concluded that the time period mentioned in the notification, although slightly short, was reasonable and the provision was directory, not mandatory. Therefore, the imposition of the tax was upheld.

3. Whether the appellants were carrying on a profession within the meaning of the Act:
The appellants in Civil Appeals Nos. 499 to 501 argued that they were not carrying on a profession as they were engaged in motor business and trade. This issue was not raised at previous stages and was not included in the statement of the appellants' case. The court referred to the definition of "profession" in Section 91 of the Act, which includes business. Consequently, the appellants' contention was rejected, and the High Court's decision was upheld.

4. Applicability of the profession tax to a religious trust:
In Civil Appeal No. 502 of 1958, the appellant trust argued that it was a religious trust and did not carry on a profession, thus not falling within the definition of "profession" in Section 91 of the Act. The issue was raised in the plaint but was not specifically addressed in the subsequent stages of the proceedings. The court found it necessary to remit the case to the High Court for a decision on whether the trust followed a profession as per Section 91. The appeal was allowed, and the case was remitted to the High Court for rehearing on this particular question.

Judgment Summary:
- Civil Appeals Nos. 499 to 501 were dismissed, upholding the legality of the tax imposition.
- Civil Appeal No. 502 was allowed, and the case was remitted to the High Court for a decision on whether the religious trust was carrying on a profession within the meaning of the Act.

Conclusion:
The Supreme Court upheld the legality of the profession tax imposed by the Nagercoil Municipal Council in Civil Appeals Nos. 499 to 501, while remitting Civil Appeal No. 502 to the High Court for further determination on the applicability of the tax to a religious trust.