IMPORTANT POINT
Provision of appeal contained in Section 84 Punjab Municipal Act provides a complete remedy against assessment and levy of tax and civil suit remedy is barred by implication.

Headnote:Punjab Municipal Act, 1911-Sections 84 and 86-Civil Procedure Code, 1908-Section 9-Assessment and levy of property tax-Maintainability of Civil suit challenging assessment and levy of such tax-Provision of appeal contained in Section 84 of the Act provided a complete remedy and no other remedy was available-Civil suit was barred.
Held : It will be noticed from the provisions contained in Section 9 of the Code of Civil Procedure that a bar to file a civil suit may be express or implied. An express bar is where a Statute itself contains a provision that the jurisdiction of a civil court is barred e.g., the bar contained in Section 293 of the Income Tax Act, 1961. An implied bar may arise when a Statute provide a special remedy to an aggrieved party like a right of appeal as contained in the Punjab Municipal Act which is the subject matter of the present case. Section 86 of the Act restrains a party from challenging assessment and levy of tax in any manner other than as provided under the Act. A provision like this is the implied bar envisaged in Section 9 C.P.C. against filing a civil suit. (Para 6)

JUDGMENT

Arun Kumar, J.-The question for consideration in this appeal is regarding maintainability of a civil suit to challenge assessment and levy of property tax on a property owned by Respondent. Respondent owns a basement in Property No.33, Prithvi Raj Road, New Delhi. The appellant is a statutory body responsible for discharging civic functions in specified areas in the city of Delhi. To generate revenue for itself the appellant is authorized to levy taxes including property tax. The said property was assessed to property tax by the appellant. According to respondent the basement cannot be put to use because it gets filled up with sub-soil water. For this reason the respondent claimed that the basement could not be said to be having any annual rateable value and therefore it could not be assessed to property tax and no tax could be levied. Inspite of this, the appellant assessed the said property to property tax. It was further alleged by the respondent that objections filed by him against the assessment of the said property to property tax had been rejected by the appellant and a notice of demand had been sent regarding arrears of property tax. This demand included arrears for certain earlier period even though the same had been stayed by civil court in separate proceedings. Respondent filed a suit for permanent injunction stating that the action of the appellant in assessment of the said property to property tax and demanding arrears of tax amounting to Rs. 4,293.35 (Rupees Four thousand two hundred ninety three and paise thirty five) on this account was illegal and without jurisdiction. He made a prayer for a permanent injunction restraining the appellant from recovering the said amount.

2. The appellant took a preliminary objection against the maintainability of the said suit. The objection is based on Sections 84 and 86 of the Punjab Municipal Act, 1911 (hereinafter referred to as "the Act"). The NDMC at the relevant time was constituted under the said Act and assessment and levy of property tax was a function carried on by NDMC in accordance with the provision of the said Act. Sections 84 and 86 of the said Act are reproduced as under:

"84 Appeals against taxation-(1) An appeal against the assessment or levy of any or against the refusal to refund any tax under this Act shall lie to the Deputy Commissioner or to such other officer as may be empowered by the State Government in this behalf:

Provided that, when the Deputy Commissioner or such other officer as aforesaid, is, or was when the tax was imposed, a member of the committee, the appeal shall lie to the Commissioner of the division.

(2) If, on the hearing of an appeal under the section, any question as to the liability to, or the principle of assessment of, a tax arises, on which the officer hearing the appeal entertains reasonable doubt, he may, either of his own motion or on the application of any person interested, draw up a statement of the facts of the case and the point on which doubt is entertained, and refer the statement with his own opinion on the point for the decision of the High Court.

(3) On reference being made under sub-section (2), the subsequent proceedings in this case shall be, as nearly as may be, in conformity with the rules relating to references to the High Court contained in Section 113 and Order XLVI of the Code of Civil Procedure.

(4) In every appeal the costs shall be in the discretion of the officer deciding the appeal.

(5) Costs awarded under this section to the committee shall be recoverable by the committee as though they were arrears of a tax due from the appellant.

(6) If the committee fail to pay any costs awarded to an appellant within ten days after the date of the order for payment thereof, the officer awarding the costs may order the person having the custody of the balance of the municipal fund to pay the amount.

86. Taxation not to be questioned except under this Act-(1) No objection shall be taken to any valuation or assessment,

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2003 Supreme(SC) 890

IMPORTANT POINTProvision of appeal contained in Section 84 Punjab Municipal Act provides a complete remedy against assessment and levy of tax and civil suit remedy is barred by implication.

Cases Referred (2)

IMPORTANT POINT
Provision of appeal contained in Section 84 Punjab Municipal Act provides a complete remedy against assessment and levy of tax and civil suit remedy is barred by implication.