Judgment

SIKRI, CJI. - This appeal by special leave is directed against the judgment of the High Court of Mysore dismissing the prayer for a declaration of the invalidity of Section 99 (2) (b) of the City of Bangalore Municipal Corporation Act, 1949 - hereinafter referred to as the Corporation Act as amended by the City of Bangalore Municipal Corporation (amendment) Act, 1964 - hereinafter referred to as the 1964 Act.

2. By its judgment dated March 28, 1967 the High Court gave a limited relief to the appellant in respect of the notice No. 4606, dated March 31, 1966 issued by the Assistant Revenue Officer, Corporation of Bangalore, to the appellant and quashed it to the extent it related to the period anterior to the date of notice.

3. The following points were urged before the High Court.

"(1) The new provision, Section 99 (2) (b) of the Corporation Act, introduced by the amending Act is beyond the legislative competence of the State Legislature.

(2) The said provision is violative of the fundamental rights of the petitioners guaranteed under Articles 14 and 19 (1) (f) of the Constitution.

(Note.: - The case of alleged violation of Article 19 (1) (f), it is conceded, is not available to the petitioner in Writ Petition 704 of 1966 which is an incorporated Company).

(3) The Corporation has omitted to observe the procedure prescribed by Section 98 of the Corporation Act, and cannot therefore levy the tax."

Two other points were raised with which we are not concerned.

4. The learned counsel for the appellant, in view of our decision in Asst. Commr, of Urban Land Tax v. Buckingham & Carnatic Co., (1970) 1 SCR 268 has not pressed point No. 1 before us. In order to appreciate the other points, it is necessary to set out a few facts.

5. The appellant company are the proprietors of the West End Hotel. Race Course Road. Bangalore. The premises of the hotel comprises a total extent of 1943 acres or 11,19,168 sq. ft. out of which the building area is 1,05.683 sq. ft. The entire vacant land, excluding the built area and appurtenant thereof is being made use of for the beneficial enjoyment of the building in the area as garden and lawns. Pursuant to the powers conferred upon the Municipal Corporation of Bangalore under the Corporation Act, as amended by the 1964 Act. to levy tax on the basis of estimated market value of land a notice was issued to the appellant on March 30 1966 demanding a sum of Rs. 35,717.20 as tax on vacant land. It was stated in the notice that the vacant land, over and above the limit, measuring 89,293 sq. yds. is assessed at 0.4% of the market value plus Education Cess, plus Health Cess with effect from April 1, 1965. Property tax was also demanded on the building of the hotel but no question arises in this case as to its validity. The High Court expressly stated that they were excluding from consideration in this case all contentions of the appellant relating to property tax on buildings, and the appellant was left to pursue his normal remedies under the Corporation Act regarding the property tax on buildings.

6. Objections were filed on behalf of the appellant before the Commissioner. The appellant also filed a writ petition under Article 226 of the Constitution challenging Section 99 (2) (b) of the Corporation Act, as amended by the 1964 Act, as unconstitutional and void, and prayed for other consequential reliefs.

7. We may now set out the relevant provisions of the Corporation Act, as amended by the 1964 Act. Part III chapter V of the Corporation Act deals with taxes. Section 97 enumerates taxes and duties which the Corporation may levy and one of the taxes enumerated therein is "a property tax". Section 98 (1) requires that before the Corporation passes any resolution imposing a tax or duty for the first time it shall direct the commissioner to publish a notice in the Official Gazette and fix a reasonable period not being less than one month from the date of publication for submission of objections. The sub-section further