2002 Supreme(Guj) 710

Gujarat High Court
Judgename :KUNDAN SINGH, R.K.Abichandani
UNION OF INDIA - Appellant
Versus
RAJKOT MUNICIPAL CORPORATION - Respondent
S.C.A. 812 of 1998
Decided On : 09/19/2002

Headnote:

Bombay Provincial Municipal Corporation Act, 1949 - Railways Act, 1989 -Section 184 -Constitution of India -Article 285 - Petitioner is whether in view of the immunity from taxes granted, these Corporations can issue such bills and demand notices or take coercive measures for recovery of property taxes or service charges in lieu of such taxes. aforesaid question is raised, because, in eight of these matters had issued such demands for recovery of such service charges in respect of properties of housing the offices of the Accountant General Post Offices and the Railway, and, in the remaining matter, Municipal Corporation had raised similar demand for the Railway property. Special Civil Applications Nos. 812 of 1998, 12090 of 2000 and 11439 of 2001 have been filed by the Union of India through the Deputy Accountant General, In Special Civil Application No. 812 of 1998, the petitioner has challenged the bill, at Annexure "a" to that petition, issued by the tax Officer of the Municipal Corporation for a total sum of Rs. 14,66,640=00 in respect of the property occupied by the office of the Accountant General, at Rajkot. The petitioner also challenges the order d, at Annexure "c" to the petition, restraining the petitioner from dealing with the property since attachment warrant was issued in respect thereof for recovery of the aforesaid dues. The order was Schedule to the Bombay Provincial Municipal Corporation Act, 1949. The impugned bill at Annexure "a" recited that it was issued in respect of the property tax and water tax of the Schedule of Chapter 8 of the said Act. It appears from the statement attached to that bill that it was prepared on the basis of the property tax dues calculated with general tax on property and conservancy tax as the components -Held in absence of any notification, it was not open to any of these Corporations to impose any tax or service charges in lieu of tax under the said Act and effect recovery by issuing the impugned demand notices and other coercive orders. Admittedly, there is no law enacted by the Parliament, withdrawing the exemption from municipal taxes, as contemplated by Article 285 (1) in respect of the properties occupied by the Postal Department or Office of the Accountant General. Obviously, therefore, the recovery of property taxes or service charges in lieu of such taxes as is sought to be done under the impugned demand notices and orders issued for the coercive recovery of the municipal taxes under the said Act, is ultra vires the powers of the Municipal Corporations. All the impugned notices, demand notices as well as other orders issued by these Municipal Corporations for effecting recovery of service charges in lieu of taxes are, therefore, hereby set aside. Rule is made absolute in each of these petitions accordingly, with no order as to costs. If any amount is deposited pursuant to the interim orders, that may be refunded -Held corresponding provision of section 135 (1) of the Act of 1890, and in absence of any contract as contemplated under sub-section (4) of section 189 or under sub-section (4) of the corresponding provision of section 135 of the Act of 1890, it was not open to any of these Corporations to impose any tax or service charges in lieu of tax under the said Act and effect recovery by issuing the impugned demand notices and other coercive orders. Admittedly, there is no law enacted by the Parliament, withdrawing the exemption from municipal taxes, as contemplated by Article 285 (1) in respect of the properties occupied by the Postal Department or Office of the Accountant General. Obviously, therefore, the recovery of property taxes or service charges in lieu of such taxes as is sought to be done under the impugned demand notices and orders issued for the coercive recovery of the municipal taxes under the said Act, is ultra vires the powers of the Municipal Corporations. All the impugned notices, demand notices as well as other orders issued by these Municipal Corporations for effecting recovery of service charges in lieu of taxes are, therefore, hereby set aside. Rule is made absolute in each of these petitions accordingly, with no order as to costs. If any amount is deposited pursuant to the interim orders, that may be refunded -Rule made Obsolute.