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1969 (9) TMI 117

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..... its factories in Delhi, the fees being calculated according to the Horse Power and the maximum in number of workers to be employed on any day during the year as given in the Schedule. The maximum fee that is payable is ₹ 2,000/- for a factory. The factories can be run only after registration and under a licence granted under the Act and the Rules on payment of the prescribed fee. The licence is renewed every year under R. 7 on payment of the same fee which is paid at the time of the granting of the licence. Every licence granted or renewed remains in force up to December 31, of the year for which it is granted or renewed. In January 1963 the company filed a petition under Arts. 226 and 227 of the Constitution in the High Court challenging the validity of the Rules under which the licence fee for renewal of the licence for each of its factories in Delhi was being levied and collected i.e.R. 7 read with R. 5 and its, Schedule. This petition was dismissed by a division bench on February 11, 1965. The company then filed the present appeal by certificate. The principal point which has been canvassed on behalf of the appellant company is that the payment made' for renewal of t .....

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..... a service to the licence as it was meant only to make sure that the licensee carried out the conditions on which the licence had been granted to him. Some of the earlier decisions were considered as also the pronouncement in H.H. Sudhundra Thirtha Swamiar v. Commissioner for Hindu Religious Charitable Endowments, Mysore([1963] Supp. 2 S.C.R. 302.) and with regard to the latter case it was said that a service resulting in the control of the Math adipathi conferred special benefit on the institution which alone paid the levy. As far back as 1954 it was laid down in Mahant Sri Jagannath Ramanui Das Anr. v. The State of Orissa Another([1954] S.C.R. 1046.)that the contributions levied for the. expenses of the Commissioner and his staff who were to. exercise effective control over the trustees of the Maths and the temples was to. be regarded as a fee and not a tax. Two reasons were given for this: (1) The payment was demanded only for the purpose of meeting the expenses of the Commissioner and his staff which is the machinery.. set up for due administration of the affairs of the religious institution. (2) The collections made were no.t merged in the general public revenue. Simil .....

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..... eld to be fee and not tax. We may now look at the provisions of the Act. Chapter II provides for the inspecting staff. Section 9 gives the powers of the Inspectors. They can enter any factory and inter alia make examination of the premises, plant and machinery. Under s. 10 qualified medical practitioners can be appointed to. be certifying surgeons for the purpose of the Act. The certifying surgeon has to. carry out such duties as may be prescribed in connection with the examination and ,certification of young persons under the Act. the examination of persons. engaged in factories in dangerous occupation or process as also the exercising of medical supervision. Chapter III deals with health. Section Il contains detailed provisions about cleanliness. Sections 12 to 14 relate to disposal of waste and effluents, ventilation and temperature, and dust and fume. Sections 17 to 20 concern lighting, drinking water, latrines and urinals, and spittoons. Chapter IV contains the provisions relating to safety. Section 21 deals with fencing of machinery. Section 22 with work on or near machinery in motion and section 23 with employment of young persons on dangerous machines. The other sections .....

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..... ole establishment including the Factory Inspectorate which in its turn provides free inspection and expert technical advice etc., to factory owners in matters connected with safety, health welfare and the allied matters in respect of compliance with the provisions of the Factories Act . It has further been stated that in our country matters relating to health, safety, welfare and employment have to be looked after and the desired results have been sought to be achieved by the legislature by providing statutory inspection service. According to Mr. Gokhale the Inspectors only carry out the duties laid on them under the Act and all that they have to do is to ensure that the statutory provisions and the rules are carried out properly and launch prosecutions against factory owners under the provisions of Chapter X of_ the Act in case of any breach or default on the part of the factory owners. We do not consider that the functions and duties of the Inspectorate are confined only to the limited task which has been suggested on behalf of the appellant company. A large number of provisions to which reference has been made, particularly in the Chapter dealing with safety, involve a good dea .....

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