9911796707
TMI Blog1992 (7) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court employees would not fall within the purview of the Act and, therefore, no profession tax could be levied or collected from them. At the outset, the learned Government Pleader for commercial taxes has taken a preliminary objection that the writ petitions are not maintainable for the reason that no aggrieved person, i.e., the assessee, has directly filed the writ petition and, therefore, associations representing various categories cannot file the writ petitions. Sri K. Subrahmanya Reddy, learned senior counsel, leading arguments on behalf of all the writ petitioners, has placed before us two decisions of the Division Benches of this court, viz., Warangal Chamber of Commerce v. Director of Marketing, AIR 1975 AP 245 ; [1974] 2 An WR 382 and Taxpayers' Association, Tirupathi Municipality v. Commissioner and Special Officer, Tirupathi, AIR 1977 NOC 360 (AP) ; [1977] 2 APLJ 167, on the point of maintainability of the writ petitions filed by the associations. Furthermore, he has also placed reliance on the Full Bench decision of this court in Dhronamraju Satyanarayana v. N. T. Rama Rao, AIR 1988 AP 144. In so far as the maintainability of the writ petitions is concerned, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... three years or more but less than five years 150 per annum (iii) five years or more 250 per annum (B) In any other area in the State is-- (i) less than three years Nil (ii) three years or more but less than five years 100 per annum (iii) five years or more but less than ten years 150 per annum (iv) ten years or more 250 per annum. " It is pointed out by Sri Subrahmanya Reddy that according to clause (A) of item 2 of the First Schedule, in any local area comprised in any municipal corporation or selection grade or special grade municipality, if the standing of an advocate in the profession is three years or more but less than five years, he has to pay Rs. 150 per annum ; and if it is five years or more, he has to pay Rs. 250 per annum. According to clause (B), in any other area in the State, if the standing of an advocate at the Bar is three years or more but less than five years, he has to pay Rs. 100 per annum ; if it is five years or more but less than ten years, he has to pay Rs. 150 per annum and if it is ten years or more, he has to pay Rs. 250 per annum. Sri Subrahmanya Reddy submits that this classification is clearly arbitrary, as the Legislature equates an advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or employments shall be invalid on the ground that it relates to a tax on income. (2) The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authority in the State by way of taxes on professions, trades, callings and employments, shall not exceed two thousand and five hundred rupees per annum. (3) The power of the Legislature of a State to make laws as aforesaid with respect to taxes on professions, trades, callings and employments shall not be construed as limiting in any way the power of Parliament to make laws with respect to taxes on income accruing from or arising out of professions, trades, callings and employments. " From the above, it is clear that the State Legislature has the power to make law with respect to taxes on professions, trades, callings and employments. The only limitation or restriction is that the total amount payable in respect of any person to the State by way of taxes on professions, trades, callings and employments shall not exceed the amount specified in article 276(2). In view of the constitutional provisions, it cannot be said that the State Legislature lacks compete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hmanya Reddy that it would be rational and reasonable if the minimum standing at the Bar for subjecting an advocate to levy of profession tax is uniformly fixed at ten years without reference to the local area where he practises, as that would be the minimum period for which an advocate has to struggle before he picks up some work. When the classification made by either the Legislature or the State Government cannot be said to be either unreasonable or arbitrary, it would not be proper for this court to direct them to classify persons in a manner different from the one they adopted. Sri Subrahmanya Reddy has relied on a catena of decisions enlightening us on the issue of arbitrariness in grouping of persons for the purposes of levying profession tax and contended that the arbitrary act of the Legislature offends articles 14 and 19 of the Constitution of India. In the event of this court not accepting his contention, he pleaded that at least the State Government may be directed to bring out modifications in the Act on par with the Karnataka Tax on Professions, Trades, Callings and Employments Act (35 of 1976), the validity of which was the subject-matter of the decision of the Supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under the Act. For instance, when it comes to advocates, a particular period of standing in the profession is taken into consideration for levying the amount of profession tax. As far as employees, who are recipients of salaries or wages are concerned, their total emoluments are taken into consideration for arriving at the quantum of profession tax leviable. Explanation No. 1 to the First Schedule gives a goby to the basis of classification. An advocate may have income from sources other than his profession, such as income from property, etc. Under the head " Income from property ", he may be liable to pay income-tax. But that cannot be a criterion for fixing the liability on him to pay the maximum profession tax under the Act. The same is the case in respect of employees also. Sri Subrahmanya Reddy has submitted that this Explanation is contrary to the letter and spirit of the Act and, therefore, needs striking down. We see force in the contention. When the tax is leviable in respect of profession, calling, vocation or trade, we see no rational nexus between the income derived from a source other than the particular profession or trade or vocation and the tax leviable in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appointed to any office connected with the court save after consultation with the State Public Service Commission. (2) Subject to the provisions of any law made by the Legislature of the State, the conditions of service of officers and servants of a High Court shall be such as may be prescribed by rules made by the Chief Justice of the court or by some other judge or officer of the court authorised by the Chief Justice to make rules for the purpose : Provided that the rules made under this clause shall, so far as they relate to salaries, allowances, leave or pensions, require the approval of the Governor of the State. (3) The administrative expenses of a High Court, including all salaries, allowances and pensions payable to or in respect of the officers and servants of the court, shall be charged upon the Consolidated Fund of the State, and any fees or other money taken by the court shall form part of that Fund. " From a reading of the above provisions, it is evident that the appointment of officers and servants of a High Court is made by the Chief Justice and their service conditions are prescribed by rules made by the Chief Justice subject to the provisions of any law made ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
