( 1 ) THE petition seeks quashing of the levy and demand of the General Tax on the farm house premises of the petitioner situated over khasra Nos. 487 and 2226/489 of Village Khirki, Tehsil Mehrauli, New Delhi-known as. 36, Sainik Farms, New Delhi.

( 2 ) THE location of the petitioner s property is not in dispute. According to the petitioner, the annual rateable value of the property was fixed in the year 1990 at Rs. 4880. 00 w. e. f. 1. 4. 83. The petitioner has paid the general tax payable on the property upto the year 1993-94. The petitioner has now received a bill dated 30th September, 1994 by which the petitioner has been asked to pay a sum of Rs. 33,592. 00 to the Municipal Corporation of Delhi by way of arrears of general tax (popularly known as house tax ). The petitioner does not dispute the assessment of annual rateable value. His attack to the levy and demand of general tax by the respondent-MCD is two pronged. It is submitted firstly, that the petitioner s property is situated in rural area and hence it is not liable to general tax under the provisions of the Delhi Municipal Corporation Act, 1957 (hereinafter REFERRED TO to as the Act ). Next, it is submitted that assuming that the property is liable to tax then the tax can be levied and collected by treating it as a property situated in Village Abadi aa and there, too only the built up area and not open land shall be liable to tax.

( 3 ) THE respondent-MCD has in its brief counter placed reliance on various relevant provisions of the Act, the Notification issued and the bye-laws framed thereunder to submit that not only the petitioner s property is liable to tax but it has been taxed correctly.

( 4 ) WE have heard Mr. R. K. Aggarwal, learned counsel for the petitioner and Ms. Madhu Tewatia, learned counsel for the respondent-MCD. To appreciate the controversy arising for decision, it will be useful to peruse the relevant statutory provisions.

( 5 ) THE Delhi Municipal Corporation Act, 1957 extends to Delhi. [see Section 1 (2)]. Sub-Section 10 of Section 2 defines delhi to mean the entire area of the Union Territory of Delhi except New Delhi and Delhi Cantt. Thus the Act extends in its applicability to Delhi without regard to the fact whether any land within Delhi is rural or urban.

( 6 ) TAXES on lands and buildings are authorised under Entry 49 of List II of the Schedule-VII of the Constitution of India. The tax is to be levied on the annual or capital value of the land and/or the building. The Delhi Municipal Corporation Act, 1957 contemplates levy on the annual value of lands and buildings. It is known as rateable value of lands and buildings as defined in Section 2 (47) of the Act.

( 7 ) SECTIONS 114 and 115 of the Act provide as under :- 114. Components and rates of property taxes

(1) Save as otherwise provided in this Act, the property taxes shall be levied on lands and buildings in Delhi and shall consist of the following, namely :- (a)*****] (b)*****] (c)*****] (d) a general tax-

(I) of not less than ten and not more than [thirty] per cent of the rateable value of lands and buildings within the urban areas, and (ii) on lands and buildings within rural areas at such lower rates and with effect from such date as may be determined by the Corporation. Provided that the Corporation may when fixing the rate at which the general tax shall be levied during any year, determine that the rate leviable in respect of lands and buildings of portions of lands and buildings in which any particular class of trade or business is carried on shall be higher than the rate determined in respect of other lands and buildings or portions of other lands and buildings by an amount not exceeding one half of the rate so fixed [provided further that the general tax may be levied on a graduated scale, if the Corporation so determines]. Explanation : Where any portion to a higher rate of the general tax such portion shall be deemed to be a separate property for the pur