The predominant use of a property as residential should determine the tax rate, and setting apart a small area for legal work does not change the fundamental character of the property's use.

Akil Abdul Hamid Kureshi, J.

1. The petitioners have challenged the action of Vadodara Municipal Corporation to levy municipal tax on the basis of non residential/commercial category for part of their residential premises from which they are operating their offices as advocates.

2. Brief facts are as under. The petitioners are advocates practising at Vadodara. They all occupy the premises as owners of various residential units which are either flats, tenements or bungalows, situated in Vadodara. These units are residential units situated in residential society or residential complexes. It is an undisputed position that the petitioners occupy majority of portion of these units for their residential purpose and a small portion is set apart for their legal practise. In short, the petitioners run their offices in small area in their own houses.

3. The Vadodara Municipal Corporation carries a belief that to the extent the petitioners are occupying their houses for residential purposes, the same would be charged as residential use. The remaining area used by the petitioners for the purpose of their office would be charged as commercial or non residential rate. The Vadodara Municipal Corporation has on such basis issued special notices followed by tax bills. The petitioners have produced at Annexure-A1 to A12 all such notices and bills. From such notices and bills, it can be seen that even as per the Vadodara Municipal Corporation, major portions of these units are occupied by the petitioners for their residential use and relatively smaller portions are set apart for their legal work. For example at Annexure-A1, we have a bill dated 18.6.2014 issued by Vadodara Municipal Corporation to petitioner No. 1 for a sum of Rs. 5,173/- which shows that built-up area of 133.69 sq. mtrs was under residential use. At Annexure-2, is another bill issued by the Vadodara Municipal Corporation of the same date for a sum of Rs. 9,037/- concerning the same property pertaining to 48.39 sq. mtrs charged at commercial rate. Like-wise at Annexure-A3, we have a bill dated 26.6.2014 for a sum of Rs. 4,395/- concerning built-up area of 45.44 sq. mtrs. for residential use issued against petitioner No. 2 At Annexure-A5, we have bill of the same date issued to petitioner No. 2 for a sum of Rs. 7,495/- for area of 9.28 sq. mtrs. charged at commercial rate. Similarly, at Annexure-A11, we have bill dated 11.6.2014 issued to petitioner No. 4 for a sum of Rs. 2,355/- for residential area under occupation of 71.35 sq. mtrs. At Annexure-A12, we have a bill of the same date issued to petitioner No. 4 for a sum of Rs. 2,566/- for area of 17.15 sq. mtrs charged at commercial rate.

4. We notice that insofar as petitioner No. 3 is concerned, no such bills are produced. We therefore, do not decide his case.

5. From the above materials, it can be seen that the bills in question pertain to the same property for which Vadodara Municipal Corporation has issued two separate bills, one concerning the use by the petitioners for residential purpose and other occupied by the petitioners for their legal work which the Vadodara Municipal Corporation has charged at commercial rate. What further emerges from the record is that all these units are essentially residential units located in residential areas and occupation of the area by respective petitioners for legal work is relatable to a small portion of the total area of the property.

6. In this background, the question that arise is, whether Vadodara Municipal Corporation could have charged two separate rates?

7. Vadodara Municipal Corporation relied on section 141B of the Bombay Provincial Municipal Corporations Act which reads as under:

"141B [General Tax] at what rate leviable.-(1) For the purposes of [clause (c) of section 141AA, general tax] shall, subject to such exceptions, limitations and conditions hereinafter provided, be levied annually on buildings and lands in the City at such rate per square metre of the carpet areas o