Crest Gems Ltd. v. The Colombo Municipal Council – sllr 2003 volume 1 page 370

In the case between Crest Gems Ltd. (plaintiff) and the Municipal Council of Colombo (defendant), the court considered whether the defendant possessed jurisdiction under section 247B of the Municipal Councils Ordinance to impose and levy a tax on the plaintiff’s business activities. It was determined that where the English and Sinhala versions of the Ordinance are inconsistent, the Sinhala version prevails. The petitioner’s business, consisting solely of buying, selling, and exporting gems and jewellery, was found to constitute “veladama” (trade) rather than “karmanthaya” (industry) under the Sinhala text. Consequently, the authority to levy tax under section 247B was lacking. The import of sections 247A, 247B, and 247C as mutually exclusive mechanisms was reaffirmed. The tax notice was qu