The main legal point established in the judgment is that the Corporation could levy property tax from the petitioners as per the property tax formula prevailing prior to 31.03.1997 for the period between 08.08.2010 and 31.03.2013. The Corporation was directed to issue fresh bills on the basis of the old formula by 31.08.2016. The petitioners were given the option to request the Corporation to apply the tax structure prescribed under the 31.03.1997 notification for the aforementioned period, but once accepted, they could not challenge the same before any forum.

Akil Abdul Hamid Kureshi, J.

1. These petitions arise in similar background. We may, for the present, refer to facts as arising in Special Civil Application No. 16400 of 2015.

2. The petitioner is a proprietory concern and is engaged in trading in Timber for which purpose, the petitioner occupies premises which is situated within the limits of Bhavnagar Municipal Corporation. The petitioner has challenged a bill dated 22.07.2014 issued by the Bhavnagar Municipal Corporation demanding from the petitioner a property tax of Rs. 6,12,190/- for the period upto 31.03.2013 and a further bill dated 24.09.2015 for the period after 31.03.2013.

3. The Property Tax Rules in Bhavnagar have a chequered history. Upto 31.03.1997, the Corporation had set of rules which provided for collection of property tax on annual rental basis. However, by issuing notification dated 31.03.1997, the Commissioner of Municipal Corporation introduced fresh set of rules permitting collection of property taxes in various properties situated within the Municipal Corporation on the basis of carpet area. This formula adopted the carpet area of the property whether open or constructed upon and then applied various factors principally depending on the nature and use of the properties. We are not directly concerned with the nitty-gritty of the manner in which these rules operated. Suffice it to note that large number of owners or occupiers of various properties of Bhavnagar challenged these rules before the High Court. A bunch of petitions being Special Civil Application No. 16864 of 2011 and connected petitions in case of Bhavnagar District Chamber of Industries v. State of Gujarat through the chief Secretary and ors came to be disposed of by a Division Bench of this Court by judgment dated 30.08.2013. We would revert back to the judgment at a later stage. At this stage, we may record that the Court found that the Corporation had no power to levy property tax on carpet area basis. The Taxation Rules of 31.03.1997 were, therefore, declared as illegal. The Court was of the opinion that despite setting aside the Taxation Rules, there cannot be a vacuum or zero tax formula and, therefore, made two fold adjustments. With respect to those property owners or occupiers who had voluntarily paid the taxes as per the Taxation Rules of 31.03.1997, the Court provided that setting aside of the Rules would have no effect. With respect to the petitioners who had challenged the Rules, the Court provided that the Corporation could levy tax for the interim period, not on the basis of Rules of 31.03.1997 but on the basis of the structure prevailing prior to that. We may record that, by the time the Court delivered the judgment, Bhavnagar Municipal Corporation had come up with the fresh formula of carpet area based taxation rules on the strength of amended Section 144A of the Gujarat Provincial Municipal Corporations Act, 1949 and post 01.04.2013, all property taxes were to be governed by such fresh set of rules.

4. Insofar as the present petition is concerned, it appears that a special notice was issued on 08.08.2011 on the basis of the tax formula of 31.03.1997 where the municipal ratable value was assessed at Rs. 4793/-. The assessment of tax was worked out at Rs. 15,529/- per annum. Under this notice, the Corporation desired to assess the petitioner's property tax effective from 01.04.2009. The petitioner did not respond to such notice and the Corporation thereupon, issued a demand notice/bill on 10.05.2012 demanding a total of Rs. 1,26,146/- for the period between 01.04.2009 and 31.03.2013.

5. After the High Court disposed of the said group of petitions in case of Bhavnagar District Chamber of Industries v. State of Gujarat through the chief Secretary and ors (supra) the Corporation issued a fresh bill dated 22.07.2014 demanding a total tax of Rs. 6,12,190/- for the period between 01.04.2009 and 31.03.2013 purportedly under the ratable value formula which prevailed upto 31.03.1