Licence fees imposed by local statutory bodies must be correlated to the cost of services provided and cannot be arbitrarily increased for the sole purpose of revenue generation without following statutory procedures.

ORDER :

M. DHANDAPANI, J.

W.P.Nos.19621, 19623, 19628 of 2021 have been filed seeking issuance of Writ of Certiorari calling for the records of the order dated 01.03.2021 issued by the first respondent based on the Resolution No.22/2020 dated 21.02.2020 of the second respondent and quash the order dated 01.03.2021 issued by the first respondent.

2.W.P.No.22177 of 2021 has been filed seeking issuance of Writ of Certiorari, calling for the records of the order dated 05.03.2021 issued by the first respondent and quash the same.

3.W.P.No.23731 of 2021 has been filed seeking issuance of Writ of Certiorari calling for the records of the order dated 01.03.2021 issued by the first respondent based on the Resolution No.22/2020 dated 21.02.2020 of the second respondent and quash the same.

4.W.P.No.23735 of 2021 has been filed seeking issuance of Writ of Certiorari, calling for the records of the order dated 01.03.2021 issued by the first respondent and quash the same.

5.Since the issue involved in all these writ petitions are interrelated, they are heard together and disposed of by way of common order.

6.The learned counsel appearing for the petitioners submitted that the petitioners are renowned manufacturer of textile machineries and allied products, having its registered office and primary manufacturing unit at Periyanaickenpalayam, Coimbatore. On 18.01.2021, the petitioners received letter from the first respondent demanding licence fee under the provision of Tamil Nadu Panchayat Act, 1994 mentioning that the licence fee had been enhanced from the year 2021-22 pursuant to the Resolution No.22/2020 dated 21.02.2020 of the second respondent and the petitioners found that the licence fee stood enhanced by almost four times above the prior licence fee and before enhancing licence fee, no notice was issued to the petitioners.

7.The learned counsel appearing for the petitioner further submitted that without any justification, the respondents enhanced the licence fee and further submitted that similar issue was considered by this Court in W.P.No.5452 of 2011 dated 20.12.2022, wherein, this Court referring to the decision rendered by this Court and the decision rendered by the Hon’ble Full Bench of this Court, observed that fixation of licence fee is only for the purpose of providing some service and it is not for the purpose of revenue generation and further observed that the purpose of collection of licence fee is only for providing the service relating to issuance of licence and not for augmenting the revenue. Accordingly, the learned counsel prayed for allowing the writ petitions.

8.The learned counsel appearing for the first respondent submitted that the petitioners have not challenged Resolution No.22/2020 dated 21.02.2020, but have filed these writ petitions challenging the return of licence fee applications seeking to pay the licence fee as per the Resolution. The learned counsel further submitted that the licence fee are fixed by the Panchayat Union Council and advised to the Village Panchayats and the enhancement was made by the authorities and not by the corresponding Village Panchayat. The learned counsel further submitted that the copy of Resolution No.22/2020 dated 21.02.2020 and revised licence fee details were handed over to the petitioners.

9.Heard the arguments advanced on either side and perused the materials available one record.

10.The petitioners are manufacturer of textile machineries and allie