THE HON’BLE MR. JUSTICE C.V.NAGARJUNA REDDY WRIT PETITION No.4103 of 2002 Date: 06.02.2008 Between: The Machilipatnam Bullion Jewellers And Diamond Merchants Association … Petitioner AND Govt., of A.P., Rep by its Secretary, Municipal Admn., Dept., Hyderabad. And others … Respondents Counsel for the petitioner: Sri S.V.Ramana Counsel for respondents: Smt.Beena for Standing Counsel HON’BLE MR. JUSTICE C.V.NAGARJUNA REDDY WRIT PETITION No.4103 of 2002 ORDER: This writ petition is filed for a writ of mandamus to declare the action of the respondents in collecting the licence fee in respect of jewellery and diamond shops by respondent No.2 – Municipality as illegal, arbitrary and without jurisdiction and contrary to the provisions of the Andhra Pradesh Municipalities Act, 1965 (for short “the Act”). Heard Sri S.V.Ramana, learned counsel for the petitioner a n d Smt.Beena, learned counsel representing the Standing Counsel for respondent No.2-Municipality. The members of the petitioner association are involved in the business in jewellery and diamonds within the municipal limits of respondent No.2. By notification dated 9.5.2001 published by respondent No.2 in the District Gazette, it has fixed licence fees on various categories of traders including gold and diamond merchants. According to the petitioner association, respondent No.2 municipality is empowered under Section 263 of the Act to prescribe licence fees in respect of the establishments included in schedule-IV of the Act. It is their case that the business of jewellery and diamond is not included in the said schedule and that therefore, the notification to the extent it envisaged taking of licences and prescribing licence fees qua the jewellery and diamond merchants is without jurisdiction. In the counter affidavit filed on behalf of respondent No.2 – Municipality it is stated that Schedule-IV of the Act was prepared long time back in the year 1965 which does not include any trade requiring licences and that in order to improve the financial position of the Municipality, it has issued the impugned notification. The law is well settled that a taxing provision is required to be construed strictly and no tax can be levied without authority of law. Admittedly, the category of jewellery and diamond merchants is not included in Schedule-IV of the Act. Therefore, it is beyond the power of respondent No.2 to issue a notification contrary to the provisions of Section 263 read with Schedule-IV of the Act. Even if the Municipality is in dire need of finances, it cannot resort to illegal methods in augmenting its revenues. The writ petition is therefore, allowed to the extent of the petitioner association. This order however, does not preclude respondent No.1 from amending the schedule by bringing out appropriate amendment in order to include in Schedule-IV more categories of traders for the purpose of prescribing licences and levy of licence fees. The writ petition is allowed to the extent indicated above. ___________________________ C.V.NAGARJUNA REDDY,J Date:06.02.2008 Note: Registry to mark copy of the judgment to The Chief Secretary to Government, Hyderabad. B/o. Mdaa