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2020 Supreme(Guj) 887
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J.B. Pardiwala, Bhargav D. Karia, JJ.
M/S SE Transstadia Private Limited – Petitioner
Versus
Ahmedabad Municipal Corporation – Respondent
R/Special Civil Application No. 6018 of 2019
Decided On : 20-10-2020
Advocate Appeared:
For the Petitioner: Mr. Mihir Joshi, Senior Counsel With Ms. Nisha Oza For M/S Wadiaghandy And Co
For the Respondent:Mr. S.N. Shelat, Senior Counsel With Learned Advocate Ms Jirga D Jhaveri
Point of Law: Provisions of Rule 20 clearly show that the power of the Commissioner to make changes in the entry can be exercised only during the official year itself. Once this official year is over, the Commissioner will have no jurisdiction to make any alteration.
Headnote:
Gujarat Provincial Municipal Corporations Act, 1949 – Taxation Rules (Amendment) 2001 - Rule-8, 16 and 15(2) and 20 - Indian Companies Act, 1956 - Building Use Permission - Ahmedabad Municipal Corporation - Multipurpose sports facilities - Notice of demand – Assessment - Case of the petitioner that bill raised by AMC was unilateral; without prior verification and on basis of carpet area - Bill was raised upon multiplying the carpet area with the factors as prescribed in Rule-8-B of Rules 2001 framed under provisions of Act, 1949 - Impugned notice of demand being issued without giving any opportunity of being heard to petitioner is held to be not tenable in law - As complaint filed by petitioner under Rule- 16 of Rules is pending for adjudication, pursuant to the notice issued under Rule 15(2) of Rules, impugned demand notice is hereby quashed and set aside.
Facts of the case: Petitioner is a private limited company incorporated under provisions of Act, 1956 - Petitioner has filed this petition through its authorized signatory - Petitioner has created a set up providing for sports facilities in Ahmedabad to enhance and encourage sports amongst general public in Public Private Partnership format with the Government of Gujarat - Petitioner company is incorporated for sole purpose of providing the state of the art multipurpose sports facilities and sports infrastructure in the State of Gujarat - State of Gujarat sanctioned the project of petitioner company as a project of Special Nature considering innovative and novel technologies - Entire project is based on a Public Private Partnership system and a Design Build Operate and Transfer Model, whereby, petitioner would incur entire expenditure of investment of approximately Rs.550/- Crore and share income earned with the Government - Ultimately entire project shall stand vested in Government.
Findings of the court: It is now well settled legal position that notice under Rule 15(2) is a mandatory requirement and the impugned demand notice for recovery of tax bills issued by the AMC cannot be held to be legal and valid and is therefore liable to be quashed and set aside - Impugned notice of demand being issued without giving any opportunity of being heard to the petitioner is held to be not tenable in law. As the complaint filed by the petitioner under Rule- 16 of the Rules is pending for adjudication, pursuant to the notice issued under Rule 15(2) of Chapter-VIII of the Rules, the impugned demand notice is hereby quashed and set aside.
Result: Petition allowed.
JUDGMENT :
BHARGAV D. KARIA, J.
1. By this petition under Articles 14, 226 and 227 of the constitution of India, the petitioner has prayed for the following reliefs:
A. This Hon’ble Court be pleased to issue a Writ of Mandamus or any other appropriate writ, order or direction to quash and set aside the Demand Notice dated 15th March, 2019 (Annexure-“A”) issued to the Petitioner by the Respondent under the Gujarat Provincial Municipal Corporations Act, 1949, with respect to property of Petitioner being Tenement No. 0309-50-0001-0001-Q, the same being bad in law;
B. This Hon’ble Court be pleased to issue a Writ of Mandamus or any other appropriate writ, order or direction to quash and set aside the communication of Respondent dated 15th November, 2018 (Annexure-“H”) issued to the Petitioner with respect to property of Petitioner being Tenement No. 0309-50-0001-Q, the same being bad in law;
C. This Hon’ble Court be pleased to issue a Writ of Mandamus or any other appropriate writ, order or direction to quash and set aside the Bills raised by the Respondent under the provisions of Gujarat Provincial Municipal Corporations Act, 1949 for the period of 2016-17 (Annexure-“B”), 2017-18 (Annexure-“D”) and 2018-19 (Annexure-“J”) upon the Petitioner with respect to property of Petitioner being Tenement No.0309-50-0001-0001-Q, the same being issued without the authority of law;
D. This Hon’ble Court be pleased to issue a Writ of Mandamus or any other appropriate writ, order or direction restraining the Respondent from arising any other / further bills and/or demand notice on the Petitioner with respect to property of Petitioner being Tenement No. 0309-50-0001-0001-Q, under the provisions of Gujarat Provincial Municipal Corporations Act, 1949 until the complaint filed by Petitioner under Rule 16 of Chapter VIII of Schedule A of Gujarat Provincial Municipal Corporations Act, 1949 on 12th March, 2019 (Annexure-“L” (Colly)), is disposed of after giving the Petitioner an opportunity of being heard;
E. Pending admission, hearing and final disposal of the present Petition, this Hon’ble Court be pleased to stay the operation, execution and implementation of the Demand Notice dated 15th March, 2019 (Annexure-“A”) issued to the Petitioner by the Respondent under the Gujarat Provincial Municipality Corporation Act, 1949 with respect to property of Petitioner being Tenement No. 0309-50-0001-0001-Q;
F. Pending admission, hearing and final disposal of the present Petition, this Hon’ble Court be pleased to stay the operation, execution and implementation of the communication of Respondent dated 15th November, 2018 (Annexure-“H”) issued to the Petitioner with respect to property of Petitioner being Tenement No. 0309-50-0001-0001-Q;
G. Pending admission, hearing and final disposal of the present Petition, this Hon’ble Court be pleased to stay the operation, execution and implementation of the Bills raised by the Respondent under the provisions of Gujarat Provincial Municipal Corporations Act, 1949 for the period of 2016-17 (Annexure-“B”), 2017-18 (Annexure-“D”) and 2018-19 (Annexure-“J”) upon the Petitioner with respect to property of Petitioner being Tenement No.0309-50- 0001-0001-Q;
H. Pending admission, hearing and final disposal of the present Petition, this Hon’ble Court be pleased to restrain the Respondent from taking any coercive and/or adverse actions against the Petitioner in furtherance of the Demand Notice dated 15th March, 2019 (Annexure-“A”) issued to the Petitioner by the Respondent under the Gujarat Provincial Municipal Corporations Act, 1949 with respect to property of Petitioner being Tenement No.0309-50- 0001-0001-Q;
I. Ex-parte, ad interim reliefs with respect to Prayers (E), (F), (G) and (H) may kindly be granted.
J. Such other and further reliefs as deemed fit to this Hon’ble Court in the interest of justice, equity and good conscience may kindly be granted.
2. The brief facts of the case are as under:
2.1. The petitioner is a private limited comp
