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1996 Supreme(Del) 814
High Court Of Delhi
NEW DELHI MUNICIPAL COUNCIL - Appellant
Versus
MOTOR INDUSTRIES COMPANY LIMITED - Respondent
Decided On : 10/07/1996
Headnote:New Delhi Municipal Council Act, 1994 - Sections 115, 116 and 416 — Provisions of NDMC Act not retrspective in operation — Assessment proceedings initiated under Punjab Act — Appeal filed after commencement of NDMC Act — Principles to decide applicability of new or old provisions of appeal laid down — Punjab Municipal Act, 1911 — Section 84.
Held:
"A levy or assessment of any tax finalised on or after 10th November, 1995 shall be deemed to have been finalised under the provisions of New Act. An appeal thereagainst shall lie to the Court of the district judges of Delhi or New Delhi as the case may be under Section 115(1) though the assessment was initiated and made under Chapter V of the Punjab Municipal Act, 1911. Such appeal must comply with Section 116 of the NDMC Act, 1994."
"The appeals pending since before 10th November, 1995 and filed under the Punjab Municipal Act, 1911 shall continue to be heard by the ADM. Compliance with Section 116 NDMC, 1994 cannot be insisted on in such appeals. The appeals need not be transferred to the district judges."
"An appeal against levy or assessment of tax finalised before 10th November, 1995 may be filed under Section 84 of the Punjab Municipal Act, 1911 though actually filed after 10th November, 1995 as the forum of appeal under the Old Act continues to exist and to be available. "(pr.28)
Sections 416(1), 3 abd 4 — Relevant date for repeal of Punjab Municipal Act, 1911 in New Delhi — Is 10.11.1995 the date of establishment of Council under Section 3(1) and 4 and not 26.5.94 the date of appointment of special officer.
"On 10.11.95, the Central Government has in exercise of the powers conferred by Section 3(1) and 4 Of the NDMC Act constituted the New Delhi Municipal Council consisting of 9 persons with effect from the date of publication of notification. Notification has been published in Gazette of India (Extraordinary) Pt. II, Section 3, Sub-section (ii) dated 10th November, 1995. This is the date of establishment of Council and on this date the Punjab Municipal Act, 1911 ceases to have effect in New Delhi. "(pr.25)
"The date of appointment of special office Under Section 418 of New Act also has no relevance for Section 416 (1)."
( 1 ) THE house property of respondent No. 1 has been assessed to tax on 14. 3. 94 for the year 1993-94. On 31. 3. 94, assessment for the year 1993-94 was adopted for the assessment year 1994-95. On 16. 8. 94, the respondent No. 1 filed an appeal under Section 84 of Punjab Municipal Act, 1911 before the Additional District Magistrate (N/e) (respondent No. 2) an Officer empowered by the State Government in this behalf under Section 84 (2) of the Act. The appeal is pending. On 25. 5. 94 came into force the New Delhi Municipal Council Act, 1994. An objection was taken before the respondent No. 2 by the petitioner that the appeal now deserved to be dealt with under the provisions of the NDMC Act, 1994. The objection has been over ruled by the respondent No. 2 vide his order dated 13. 2. 95 (Annexure-E ). Feeling aggrieved therewith, the petitioner has filed the present writ petition.
( 2 ) FOR the sake of convenience, hereinafter the Punjab Municipal Act, 1911 and New Delhi Municipal Act, 1994 shall be referred to respectively as the `old Act and the `new Act .
( 3 ) IT is not disputed that the assessment in question was made under Chapter V of the Punjab Municipal Act, 1911. The appeal was filed under Section 84 of the same Act which provides 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 [state] Government. (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 a 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 thought 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. "
( 4 ) IN exercise of the power conferred by Section 84 (1) the State Government has empowered the Addl. Distt. Magistrate, (respondent No. 2) to hear the appeals.
( 5 ) THE N. D. M. C. Act, 1994 came into force on 25th day of May, 1994 by virtue of sub-Section 3 of Section 1 thereof though the assent of the President was given on 14th July, 1994. Chapter VIII of this Act makes provision for taxation. In so far as tax on property is concerned substantially the provisions of the Old Act and the New Act are similar. The noteworthy provisions of the New Act relevant for the purpose of the present petition are to be found contained in Sections 115, 116, 416 which are extracted and reproduced hereunder.
"115. APPEAL AGAINST ASSESSMENT ETC. (1) An appeal against the levy or assessment of any tax under this Act shall lie to the Court of the district judges of Delhi or New Delhi, as the case may be. (2) If, before or on the hearing of an appeal under this Section, any question of law or usage having
