The main legal point established in the judgment is that the assessment of premises should be made in accordance with the actual or intended user of the building, and the assessment under the Calcutta Municipal Act III [3] of 1923 should align with the provisions of S. 127(a) and S. 127(b).

DAS, J. The appellant, Dominion of India, representing the East Indian Railways, [formerly Bengal Assam Railway] appeals to this Court under S. 141, Calcutta Municipal Act III [3] of 1923 [hereinafter called the Act] against an order dated 30th June 1947, passed by Mr. R.N. Ray, learned Small Cause Court Judge, Sealdah, District 24 Parganas, whereby he dismissed an appeal against the order of the second Deputy Executive Officer, Corporation of Calcutta, dated 11th April 1946, under S. 140 of the Act in respect of the assessment of Premises No. 52, Gopal Chandra Chatterjee Road.

2. The B.A. Railway [Bengal Assam Railway] was the owner and occupier of premises No. 52, Gopal Chandra Chatterjee Road, measuring 83 Bighas, 9 Kottaha 6 chhataks and 14 sq. ft., and was paying Rs. 3004-12-0 per annum on account of municipal rates and taxes to the Corporation of Calcutta, hereinafter called the Corporation.

3. By a memorandum, Ex. 4, the B.A. Railway let out to the Civil Supply Department the aforesaid premises for one year subject to further extensions, as may be agreed upon; the relevant provision runs as follows :

2. The Civil Supply Department shall be liable to pay to the Bengal Assam Railway Administration a sum of Rs. 60,096-4-0 per annum on account of rent for occupation of the above land. The Civil Supply Departments shall also pay a sum of Rs. 3004-12-0 per annum on account of Municipal tax which the Railway Administration is paying to the Calcutta Corporation. The Civil Supply Department shall be (sic) also pay other taxes or ancillary charges which the Railway Administration may have to pay to any local authorities or any ether body in connection with the said plot of land and/or structures thereon. It is now admitted that thereafter the Civil Supply Department erected certain godowns and other structures at its own cost and for its own use. This is also supported by the uncontradicted evidence adduced by the appellant.

4. In September 1945, the Corporation served the following notice, Ex. 3, on the appellant :

Corporation of Calcutta ; Assessment Department.

Special Notice under S. 138 of Bengal Act III [3] of 1923.

The owner of Premises No. 52, Gopal Chandra Chatterjee Road.

Take notice that the above premises have been assessed at an annual value of Rs. 3,71,520 and the said valuation is to remain in force from the commencement of the 3rd quarter of 1945-46 until the expiration of the period of assessment of the ward within which the above premises are situated, viz., the 4th quarter of 1948-1949.

Grounds of increase,

Valuation of the new structures on estimated yearly rental value leas statutory allowance for repairs.

Municipal Office S. M. Hossain

Dated 11th September, 1945. Acting Assessor to the Corporation.

5. The following grounds of objections were then raised to the said proposed assessment :

(i) That the entire revaluation is ultra vires, illegal and inoperative :

(ii) that the additional constructions which are sought to be assessed are not liable under the law to be assessed ;

(iii) that the entire principle and basis of assessment are wrong and not warranted by the law ; and

(iv) that the taxes demanded on the assessment are patently disproportionate to the services rendered.

6. It would appear from EX. A(1) that the Executive Engineer of the B.A. Railway admitted that the approximate cost of construction of the godown and structures was Rs. 35,90,000 only [excluding costs of land].

7. The second Deputy Executive Officer by his order dated 11th April 1946, Ex. 2(a), reduced the valuation to Rs. 3,22,930.

8. The details of valuation are as follows :

Corporation of Calcutta ; Assessment Department.

Statement of Details of Valuation.

Intermediate Re-valuation with effect from the 3rd quarter of 45-46. Premises No. 52, Gopal Chandra Chatterjee Road.

33000 x 12 ... ... 396000

10% ... ... 39600

__________

356400

Land about

10 B @ 1/-

p. k. p. m.... ... 2400

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358800

10% ... ... 35880

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3229