R. L. Gulati, J. - (1.) The petitioner is a registered partnership firm carrying on the business in the name and style of M/s. Narang Dairy Products. It has a factory at Ghazipur where milk is processed and the various dairy products are produced. The head office of the petitioner is situated at 7 Windsor Place, Lucknow. The first respondent, the Zila Parishad, Lucknow has levied upon the petitioner a sum of Rs. 2,000/- on account of circumstances and property tax for each of the three assessment years 1966-67 to 1968-69. The petitioner's appeal against the assessment has been dismissed by the Commissioner, Lucknow Division, Lucknow, the respondent No. 2. The petitioner has now approached this Court under Article 226 of the Constitution.
(2.) The circumstances and property tax is levied upon a person who resides or carries on business within the local limits of the Zila Parishad. Village Ghazipur is no doubt within the territorial limits of Lucknow Zila Parishad but the petitioner says that is neither residing there nor is it carrying on there any business. It merely collects milk from the farmers of the surrounding area but the sale takes place at various depots within the municipal limits of the city of Lucknow.
(3.) Now the petitioner being a partnership firm cannot for obvious reason be assessed on the basis of its residence because a partnership firm cannot be said to be residing at a particular place. It can be assessed with reference to the place from which it carries on its business. Now in a business like the one carried on by the petitioner it cannot be said that the business is carried on where the milk, is purchased or where it is processed into various dairy products. The business can be said to be carried on only at the place where the sales take place, otherwise a firm carrying on business will be liable to pay circumstances and property tax more than once at the hands of various Zila Parishads, if any process of purchase of raw material etc. is carried on within the local limits of such Zila Parishads. A business, therefore, can be said to take place where the finished products are sold. The respondents have controverted the averments of the petitioner. It is stated in the counter-affidavit that the petitioner not only manufactures dairy products at Ghazipur but sells them from there. The averment in the counter-affidavit is no doubt vague but nevertheless the petitioners contention to the contrary cannot be accepted.;