SAROJA MILLS LTD., THROUGH ITS DIRECTOR, PROPRIETOR, THIAGARAYAN MILLS Vs. UCHAPATTI PANCHAYAT BOARD BY ITS PRESIDENT

JUDGEMENT

(1.) THE short question for consideration in this second appeal is whether the appellant's building housing a spinning mills within the limits of Uchapatti Panchayat Board, Tirumangalam taluk, is liable for house -tax under the Madras Panchayats Act XXXV of 1958. The suit has been instituted by the appellant, Saroja Mills, Limited, Coimbatore, for a declaration that the defendant Panchayat Board, the respondent herein had no right to levy house -tax on the mills owned by it, as it is a factory and not a house. Refund of Rs. 1,031 -25 has been prayed for as tax illegally collected. The learned Subordinate Judge of Madurai and on appeal the learned District Judge of Madurai, having due regard to the principles governing interpretation of taxation provisions upheld the validity of the levy. The only basis on which the levy is sought to be invalidated is that the spinning mill is a factory, which would fall under the definition of "factory" in statutes providing for the establishment, regulation and control of factories and that the Panchayats Act does not authorise levying house -tax on a factory.

(2.) THE relevant charging sections under the Act are Sections 119 and 120 found in Chapter IV of the Act under the heading "Taxes and Finance." The material parts of the sections are: Section 119. Taxes leviable by panchayats. - -(1) Every village panchayat shall levy in the village and every town panchayat shall levy in the town a house -tax, a profession -tax and a vehicle tax. Section 120. House -tax. - -(1) The house -tax shall be levied on all houses in every village and town on the basis on which such tax was levied in the local area concerned immediately before the commencement of this Act:

(3.) WEBSTER 's Twentieth Century Dictionary defines factory inter alia thus: An establishment for the manufacture of goods including the necessary buildings and machinery.