TMI Blog1983 (4) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... with the supervision of the slaughtering of animals in the slaughter houses maintained by it by merely raising the rates two-fold and three-fold. The increase from 50 p. to ₹ 2 per animal in the case of small animals and from Re. 1 to ₹ 8 in the case of large animals appears, to us to be wholly justified in the circumstances of the case. The appeal is, therefore, allowed with costs, the judgment of the High Court set aside - Civil Appeal Nos. 2120 & 2125 of 1970 - - - Dated:- 28-4-1983 - Judge(s) : O. CHINNAPPA REDDY., D. A. DESAI JUDGMENT The judgment of the court was delivered by CHINNAPPA REDDY J.-By a notification dated January 31, 1968, the Delhi Municipal Corporation purported to enhance the fee for slaughtering animals in its slaughter houses from 25 p. to Rs. 2 for each animal, in the case of sheep, goats and pigs, and from Rs. 1 to Rs. 8 for each animal, in the case of buffaloes. The notification was quashed by the High Court of Delhi on the ground that the Corporation was really proposing to levy a tax under the guise of enhancing the fee. The original rates were fixed in March, 1953, and the revised rates were to take effect from February 1, 1968. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sciplines. Tax and fee are such words. They properly belong to the world of public finance but since the Constitution and the laws are also concerned with public finance, these words have often been adjudicated upon in an effort to discover their content. Commissioner for Hindu Religious Endowments, Madras v. Shri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt [1954] SCR 1005; AIR 1954 SC 282 is considered the locus classicus on the subject of the contradistinction between tax and fee . The definition of tax given by Latham C.J. as a compulsory exaction of money by public authority for public purposes enforceable by law and not payment for services rendered was accepted by the court as stating the essential characteristics of a tax. Turning to fees, it was said a fee is generally defined to be a charge for a special service rendered to individuals by some governmental agency , but it was confessed, as there may be various kinds of fee, it is not possible to formulate a definition that would be applicable to all cases . As regards the distinction between a tax and a fee, it was noticed that compulsion could not be made the sole or even a material crit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r maintaining the service are met out of the amounts collected there being a reasonable relation between the levy and the expenses incurred for rendering the service, the levy would be in the nature of a fee and not in the nature of a tax ... but a levy will not be regarded as a tax merely because of the absence of uniformity in its incidence, or because of compulsion in the collection thereof, nor because some of the contributories do not obtain the same degree of service as others may. In Hingir-Rampur Coal Co. Ltd. v. State of Orissa [1961] 2 SCR 537; AIR 1961 SC 459, the court while reiterating that there was an element of quid pro quo between the person paying the fee and the authority imposing it, said (p. 464 of AIR) : If specific services are rendered to a specific area or to a specific class of persons or trade or business in any local area, and as a condition precedent for the said services or in return for them cess is levied against the said area or the said class of persons or trade or business, the cess is distinguishable from a tax and is described as a fee. Later it was said (p. 465) : It is true that when the legislature levies a fee for rendering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eads would at best have been speculative. It would have been no more possible for the High Court if the information were before it, than it would be possible for us if the information were before us, to find out what part of the expenses incurred by the Commissioner's establishment at various places and what part of the salary of his staff at those places should be allocated to the functions discharged by the establishment in connection with the services rendered to the appellants. We do not, therefore, think that any substantial prejudice has been caused to the appellants by reason of the non-supply of the information sought by them. In Southern Pharmaceuticals Chemicals v. State of Kerala, AIR 1981 SC 1863; [1982] 1 SCR 519, A. P. Sea J., speaking for the court, noticed the broadening of the court's attitude and observed (pp. 542, 543 of SCR): It is now increasingly realised that merely because the collections for the services rendered or grant of a privilege or licence, are taken to the consolidated fund of the State and are not separately appropriated towards the expenditure for rendering the service is not by itself decisive. That is because the Constitution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nicipal Corporation of. Delhi, the amount of Rs. 2,56,000 covers only those items of expenditure as are reflected in item XIV-B of the municipal budget. The items of expenditure covered by item XIV-B of the municipal budget are evidently those items of expenditure which are incurred directly and exclusively in connection with slaughter houses. In addition there are several other items of expenditure connected with slaughter houses but which are not included in item XIV-B. To name a few, there is the expenditure involved in the purchase, maintenance and the use of trucks and other vehicles for the removal of filth and refuse from slaughter houses. These expenses, though attributable to slaughter houses, are debited in the municipal budget under other heads such as transport, conservancy, petrol and oil, etc. There is also the expenditure incurred in connection with the maintenance of supervisory staff like a full time veterinary officer, and a municipal health officer, deputy health officer, zonal health officer, etc., a considerable part of whose duties are connected with slaughter houses. There is then the cost of depreciation of the buildings and fittings in the slaughter houses. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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