Summarize the following court judgment. Civil Appeals Nos. 1656 to 1659 of 1973. Appeal by special leave from the judgment and order dated the 29th September	 1972 of the Madras High Court in Writ Appeals Nos. 191	 23	 24 & 190 of 1968 respectively. section Challaswamy and K. Hillgorani	 for the appellant. 8 L839SupCI/75 334 A. K. Sen	 A. V. Rangam` and A. Subashini	 for the respondents. The Judgment of the Court was delivered by KRISHNA IYER	 J. The die hard 'tax ' 'fee ' dilemma survives	 as these appeals	 by special leave	 attest	 long after this Court has dispelled the fiscal legal confusion on the point in a series of rulings. The cases before us were provoked by a sudden escalation of licence 'fee ' imposed on all homelier by the common appellant	 the Maduari Municipal Council (now it is a Corporation	 but that makes no difference) (Council	 for short). The scale of fees which	 perhaps	 merely defrayed the cost of issuing the licence	 was moderate to begin with and paid periodically by the respondents who run hotels within the municipal limits; but their present grievance is that the resolution of December 28	 1965	 whereby a sharp spurt in the rates of fee was Cr brought about	 has been tainted with 'unconstitutionality '. The authority	 to justify the levy qua fee	 must render some special services to the category from whom the amount is exacted and the total sum so collected must have a reasonable correlation to the cost of such services. Where these dual basic features are absent	 you cannot legally claim from the licensee under the label 'fee '. D This Court has	 as late as the Salvation Army Case(l) set out the tests beyond doubt. When the respondents (writ petitioners) challenged the fee raise	 the plea in defence first was that the impost was a fee strictly so called	 that it was requited by adequate benefits and that the larger lay out on the inspecting staff and allied items	 both necessitated and validated the new increase. However	 on later and better reflection	 may be	 the inspirational source for which was stated to be this Court 's pronouncement in the Liberty Cinema Case(2)	 the Council rightly abandoned the fee cum quid pro quo formula and anchored itself on the right to exact the higher rate as a 'tax on land and building ' under Entry 49 of List II	 in the Seventh Schedule	 read with section 321(2) of the Madras District Municipalities Act	 1920 (for short	 the Act). This volte face as it were	 was not objected to by the opposite party and the writ petitions and writ appeals were disposed of on that footing. The learned Single Judge upheld the levy but the appellate Bench upset it. The appellant Council has journeyed to this Court to repair the blow on its revenue since there are 1	200 and odd hotel keepers similarly situated in the Madurai Municipal limits	 although only four have figured as respondents here. The financial dimension of the decision is	 indeed	 considerable. Shri Chellaswamy	 counsel for the Council	 has been refreshingly fair in his submissions and consistently with the case urged in the High Court to support the levy	 has grounded his defence of the 'feehike ' on the taxing power of the municipal body under the Act. The core of the matter	 therefore	 is whether the context and text of the statute and other surrounding circumstances warrant the validation of the levy as a tax in essence	 be its name what it may. (1) ; (2) [1965] 2 section C. R. 477. 335 Let us formulate the problems for facility of logical handling. Agreed	 as both parties now are	 that this licence fee stands or falls as a tax	 the principal question is whether the 'fee ' provided for in section 321(2) of the Act	 under which it is collected	 is a tax at all	 having regard to the anatomy of the Act. If it can be so regarded	 the next point is whether Entry 49 of List II can bring within its constitutional compass the licence fee for running a hotel trade. Thirdly	 if that is permissible	 are there other incurable infirmities ? These apart	 some matters of subsidiary moment do arise and may be considered in the appropriate sequence. The initial terminological hurdle in the way of the appellant is that section 321(2) of the Act authorizes the collection of a licence fee in contra distinction to property tax in section 78 of the Act. Ajoy Kumar vs Local Board(l). Naturally	 Shri A. K. Sen	 counsel for the con testants	 insisted that the Act had made a deliberate dichotomy between the two types of levy	 placed them subject wise in different parts of the statute and meaningfully referred to them as 'tax ' and 'fee ' in sections 78 and 321(2)	 respectively. Counsel for the appellant	 relying on certain passages in Liberty Cinema	 (supra) desired us to slur over the verbal error. True	 mere nomenclature cannot	 without more	 lead to rejection of the plea of tax	 though it is a relevant factor	 since	 to some extent	 Liberty Cinema (supra) has whittled down the efficacy of this circumstance. This Court there observed	 at p. 483: "Now	 on the first question	 that is	 whether the levy is in return for services	 it is said that it is so because section 548 (of Calcutta Municipal Act 33 of 1951) uses the word 'fee '. But	 surely	 nothing turns on the words used. The word 'fee ' cannot be said to have acquired a rigid technical meaning in the English language indicating only a levy in return for services. No authority for such a meaning of the word was cited. However that may be	 it is conceded by the respondent that the Act uses the word 'fee ' indiscriminately. It is admitted that some of the levies authorised are taxes though called fees. Thus	 for example	 as Mitter J (in the High Court	 Division Bench) pointed out	 the levies authorised by sections 218	 222 and 229 are really taxes though called fees	 for no services are required to be rendered in respect of them. The Act	 therefore	 did not intend to use the word fee as referring only to a levy in return for services. " (emphasis	 ours) We have therefore to have a view of the concerned parts of the Act with a comparative eye on the Calcutta Municipal Act which fell for decision in Liberty Cinema (supra). Every local authority	 under the relevant statute	 has the power to tax	 so as to finance the various welfare activities it is expected to fulfil. Similarly such local bodies also exercise the police powers of the State to the extent they are vested (1) ; 336 in them by the State law for the purpose of controlling	 regulating and proscribing operations of individuals which may need to be conditioned by licences and permissions or prohibited in public interest because they are noxious or dangerous. Towards these ends	 licences and fees for services	 if any	 rendered may be prescribed. The Madras Act	 like other similar statutes	 embraces both types of activities in a systematized way. Thus Taxation and Finance are covered by Part 1 III while Public Health Safety and Convenience	 comes under Part IV	 Procedure and Miscellaneous	 which include general provisions regarding licences and permissions	 are clubbed together in Part Vl. Section 78	 empowering property tax levy	 falls in Part III (Taxation and Finance)	 while section 321	 relating to licence fees	 is located in Part VI. The scheme thus separates issue of licences and levy of licence fees from taxes on property and other items. Prima facie	 in the absence of other compelling factors	 to lug in a taxing provision into Part VI may	 therefore	 lead to obscurity and confusion. The Calcutta Municipal Act	 1951	 also has some scheme of sorts and deals with Finance in Part III	 Taxation in Part IV and Public Health	 Safety and Convenience in Part V. In the same Part	 Chapter XXVI deals with a miscellany of matters like Inspection and Regulation of Premises	 and of Factories	 Trades and Places of Public Resort. Section 443 deals with licensing and control of theatres	 circuses and places of public amusement. Strangely enough	 section 548(1) which relates to 'licence and written permission ' also empowers in addition to any other matter required to be specified under any other Section of this Act (a) * * * * (b) * * * * (c) * * * * (d) * * * * (e) the tax or fee	 if any	 paid for the licence or written permission. " F There is thus in section 548 an extra power specifically conferred to levy tax or fee	 which is significantly absent in the Madras Act (We are aware there is some obscurity here because cinema licensing is provided for earlier in section 443). It is this provision of the Calcutta Act (section 548) which fell for construction before this Court in Liberty Cinema (supra). While one may discern a broad scheme in that Act	 there is some wobbling in the sense that a power to tax is oddly placed in a Chapter primarily concerned with licences and permissions. The Madras Act	 on the other hand	 speaks with more precision and relegates licences and licence fees to a Part different from Taxation and Finance. The procedure for each is also delineated separately. For these reasons we refuse to aceede to the contention that 'fee ' in section 321 (2) is a tax. Shri A. K. Sen has cited a catena of Madras cases	 spread over several decades	 where	 under this very Act	 fee has been interpreted as fee with a tag of special services in lieu of such payment. He has 337 further pressed the drafting indifference while using the words 'fee ' and 'tax ' in s.548 of the Calcutta Act to repel the application of the observations in Liberty Cinema (earlier quoted) to the provisions of the Madras Act. In the latter	 the contrast is boldly projected not only in the phraseology but in the chapter wise dealing with the two topics. We feel the force of this submission. Shri Chellaswamy sought to counter the contention based on the location of s.321 in a Part which has nothing to do with taxation. In Liberty Cinema (supra) this Court had occasion to warn against reaching any conclusion	 when there is a tax fee conflict based on the col location of subjects in a statute or the placement of a provision under a certain rubric as clinching. What is telling is the totality	 not some isolated indicium. A short cut is often a wrong cut and a fuller study of the statute to be construed cannot be avoided. Sarkar	 J. (as he then was)	 in Liberty cinema (supra)	 observed at p. 488: "It was also contended that the levy under s.548 (of the Calcutta Municipal Act) must be a fee and not a tax	 for all provisions as to taxation are contained in Part IV of the Act	 while this section occurred in Chapter XXXVI headed 'Procedure ' in Part VIII which was without a heading. It was pointed out that Part V dealt with 'Public Health Safety and Convenience ' and section 443 which was included in Chapter XXVI contained in this Part was headed 'Inspection and Regulation of Premises	 and of Factories	 Trades and Places of Public Resort '. A cinema house	 it is not disputed	 is included in the words 'Places of public resort '. It was	 therefore	 contended that a levy outside Part IV could not be a tax and hence must be a fee for services. This contention was sought to be sup ported by the argument that s.443 occurred in a Part concerning Public Health	 Safety and Convenience and therefore the intention was that the levy authorised by the section would be in return for work done for securing public health	 safety and Convenience and was hence a fee. We are wholly unable to accept this contention. Whether a particular levy is a fee or tax has to be decided only by reference to the terms of the section as we have earlier stated. Its position in the Act cannot determine its nature; an imposition which is by its terms a tax and not a fee	 which in our opinion the present imposition is	 cannot become a fee by reason of its having been placed in a certain part of the statute. The reference to the heading of Part V can at most indicate that the provisions in it were for conferring benefit on the public at large. The cinema house owners paying the levy would not as such owners be getting that benefit. We are not concerned with the benefit	 if any	 received by them as members of the public for that is not special benefit meant for them. We are clear in our mind that if looking at the terms of the provision authorising the levy	 it appears that it is not for special services rendered to the person on whom the levy is imposed	 it cannot be a fee wherever it may be placed in the statute. A consideration 338 of where ss.443 and 548 are placed in the Act is irrelevant for determining whether the levy imposed by them is a fee or a tax. " So we do not rest our conclusion solely on the location of section 321 in a different Part from Taxation	 while we recognise it as an indicator	 among a variety of considerations of course	 when drafting precision is absent	 judicial caution has to be alerted. To recapitulate	 in the Madras Act	 Chapter VI of Part III is devoted to Taxation and Finance. Section 78(1)(a) authorizes levy of property tax. The section sets out the other taxes a Municipal Council may levy Section 78(3) together with a proviso	 contains the procedural prescriptions for imposing taxes. Admittedly	 there has been no compliance with this procedure and	 if such conformance is mandatory	 as it is	 the case of tax set up by the appellant collapses (Vide: Atlas Cycle Industries vs Haryana(1). Whether some minor defect or deficiency will defeat the validity of the tax is moot but since here there is a total failure to adhere or advert to the procedure in s.78	 we need not consider hypothetical shortfalls and their impacts. Counsel for the appellant resourcefully urged that when two constructions are possible	 we should opt in favour of validity since law leans towards life and must sustain	 not stifle it. The statute	 other things being equal	 must be interpreted us res magis valeat gaum pareat("): see Broom 's Legal Maxims ( 10 ed. ) p. 361	 Craies on Statutes (6th ed.) p. 95 and Maxwell on Statutes (11th ed.) p 221 In his submission it is possible to uphold the 'levy '	 miscalled 'fee '	 on the basis that it is a tax. The argument is that ignoring the placement of section 321 (2) in Part VI and blurring the precision of the word 'fee ' used	 we can still look at the pith and substance of the matter and regard it as a 'tax on land and buildings ' provided for in Entry 49	 List II of the Seventh Schedule. He relied on Ajoy Kumar (supra) where also a landholder who was holding a market on his land was directed to take out a licence and pay Rs. 600/ per year as licence fee	 challenged the validity of the claim on the score that the State had no power to tax markets. Repelling this contention	 this Court held that the use to which the land was put furnished sufficient nexus for the Legislature to impose a tax on land. In that connection	 the following observations lay down the guide lines: "It is well settled that the entries in the three legislative lists have to be interpreted in their widest amplitude and there fore if a tax can reasonably be held to be a tax on land it will come within entry 49. Further it is equally well settled that tax on land may be based on the annual value of the land and would still be a tax on land and would not be beyond the com petence of the State legislature on the ground that it is a tax on income: (See Ralla Ram vs The province of East Punjab: It follows therefore that the use to which the land is put can be taken into account in imposing a tax (1) ; (2)Quoted in Liberty cinema: P. 484. 339 on it within the meaning of entry 49 of List II	 for the annual value of land which can certainly be taken into account in imposing a tax for the purpose of this entry would necessarily depend upon the use to which the land is put." (p. 49). x x x x x x "It will be seen from the provisions of these three subsections (sub sections (1) to (3) of section 62 of the Assam Local self Government Act l953 Act 25 of l953) that power of the board to impose the tax arises on its passing a resolution that no land within its jurisdiction shall be used as a market. Such resolution clearly affects land within the jurisdiction of the board and on the passing of such a resolution the board gets the further power to issue licences for holding of markets on lands within its jurisdiction by a resolution and also the power to impose an annual tax thereon." (p.49) x x ". x x x x x ". section 62(2) which used the words 'impose an annual tax thereon	 clearly shows that the word 'thereon ' refers to any land for which a licence is issued for used as a market and not to the word 'market '. Thus the tax in the present case being on land would clearly be within the competence of the state legislature." (p.5l) Generously following the line of thinking presented by Shri Chellaswamy	 based on Ajoy Kumar (supra) we find difficulty in applying its ratio to section 321 (2). There the tax was on land and the expression 'thereon ' underscores this idea. Once the tax is on land	 the link between the tax and the land user like running a market or hotel based on the let ting value is good	 but in the present case there is nothing to indicate that it is a tax at all. Secondly	 the phraseology does not suggest that it is a tax on the land or the building. 	 on the other hand. it is on the licence fee for plying a particular trade. It is not possible to blink at this vital distinction between Ajoy Kumar (supra) and the persent case. Maybe that the Madurai Municipality is perfectly within its competence in imposing a property tax at any particular rate it chooses. The user of the land or building as a restaurant or hotel being the link as explained above	 the fact that there is a tax on all property within the municipality does not mean that this local body cannot levy an additional tax or surcharge on the land or building if put to a particular specialist use. We see no impediment in the municipal authority taxing hotels at a certain rate exercising its power to impose property tax provided there are no other legal impediements in the way. We are not pursuing the existence or otherwise of other impediments because that does not fall for our consideration in this case. Shri A. K. Sen is right is his submission that unlike in the Assam Act considered in Ajoy Kumar (supra) in the present case we do not even find the expression 'tax ' used. The Municipal resolution might have been saved had we been able to spell out a taxing power on property from s.321 (2) of the Act. For	 there is no gainsaying the state 's right to tax land and buildings 340 and the nexus between the tax and the power may be land use. Since A running a restaurant or cinema house is clearly a use of building	 a tax thereon	 based on such user	 is constitutionally impeccable. Such is not the case here. Thus the plea that section 321 (2) lends itself to being regarded as a tax	 indifferently described as fee	 breaks down for two reasons. When the Legislature has carefully provided in s.78 (3) for previous invitation and consideration of objections to enhancement of tax levies	 resort to the device of tax disguised as fee	 under s.321 (2)	 may not require any such procedural fairness and discipline and thus will frustrate the processual protection written into the law in regard to fiscal measures. Secondly	 Schedule V	 with which s.321 is directly linked	 sets out a host of petty and lucrative ventures all of which	 theoretically	 cannot be carried on except on land or buildings. Can it be that some flimsy or casual connection with terra firma will furnish the legal nexus between the tax imposed and the land on which the work is done ? For example	 washing soiled clothes is an item in Schedule V. It is straining judicial credulity to snapping point to say that such trivial user justifies a tax on the land when washing is done. Running a hotel or market or permanent circus or theatre may stand on a different footing. The com monsense of the common man is the best legal consultant in many cases and eschewal of hyper technical and over sophisticated legal niceties helps the vision. We cannot list out what	 in law	 will serve as a nexus between land and tax thereon but	 in a given case like in a hotel business	 land use may easily be discerned. The snag is that in the present appeals the levy is not on land but on the licence for business and bearing in mind the identity of the legal concept	 we reject the contention that the impugned resolution was an innocent tax on property. The case falls between two stools. It is not a fee ex concessionis it is not a tax ex facie. We further repel the request to read licence fee in section 321 (2) as land tax into every item of activity set out in Schedule V	 from washing soiled clothes on a broad stone to using a central place as a posh restaurant. The cumulative result of the multiple submissions we have been addressed is that the impugned resolution is invalid. We do not bar the door for the Municipality or the State to pursue other ways to tax hotel keepers	 acting according to law and under the power to tax in Entry 49	 List II	 of the Seventh Schedule	 while dismissing the appeals The legal controversy in this case is stricken with more than marginal obscurity and indeed	 has exercised our minds on the diverse aspects of law considerably. Moreover	 the battle is between a local authority which is in need of financial resources to fulfil its functions and a host of hoteliers who flourish in private business. Bearing in mind the conspectus of circumstances	 we regard this case as one where the proper order will be that parties do bear their own costs throughout. V.P.S Appeals dismissed.

The appellant increased the licence fee imposed on hoteliers respondents under s.321 (2)	 Madras District Municipalities Act	 1920	 and they challenged the increase. The appellant justified the increase on the basis that the fee under the section is a tax and falls under "tax on land and building ' in Entry 49	 List II	 VII Schedule of the Constitution. The High Court held in favour of the respondents. ^ Dismissing the appeal to this Court	 HELD: (l) The appellant would be competent to impose a property tax at any Particular rate it chooses. the user of the land and building as a restaurant or hotel furnishing sufficient nexus for the legislature to impose a tax. [339H	 340A] Ajoy Kumar vs Local Board ; 	 referred to. (2) But the fec imposed under section 321(2) in this ease is not a tax. [336G] (a) Section 321(2) authorises the collection of a fee in contradiction to tax. 1335B] (b) Section 321 is in a part of the Act different from the part dealing with taxation. While the nomenclature of the levy or the location of a section in the Act is not conclusive. they are relevant factors. for deciding whether the fee imposed is a tax or not. [335 CD] Liberty Cinema Case ; 	 referred to. (c) Section 78(1A) authorises the levy of property tax. Section 78(3) contains the mandatory procedural prescriptions for imposing taxes. When the legislature has carefully provided in the sub section for previous invitation and consideration of objections to enhancement of tax levies	 resort to section 321(2) to impose a tax as a fee would frustrate the processual protection written into the law in regard to fiscal measures	 [338 BCE] (d) Schedule V with which section 321 is directly linked sets out a number of ' petty occupations all of which	 theoretically cannot be carried on except on land or in buildings. If the licence fee in section 321(2) is read as land tax the fee in relation to every item of activity set out in the Schedule would be tax on the basis of the trivial activity furnishing the legal nexus between the tax and the land. But	 it would be straining the language to justify the imposition of a tax on the land	 on the basis of such a flimsy or casual connection