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2013 Supreme(Raj) 1353
RAJASTHAN HIGH COURT AT JAIPUR BENCH
Vineet Kothari, J.
Piyush Jain - Appellant
Versus
State of Rajasthan & Anr - Respondent
S.B. Civil Writ Petition No. 2140 of 2002.
Decided On : 24-05-2013
For the Petitioner:Anant Kasliwal, Advocate.
For the Municipal Corporation Jaipur:B.C. Chirania, Advocate.
The Court emphasized the importance of considering relevant notifications and applying them correctly in assessment proceedings, particularly when exemptions are claimed by taxpayers.
Headnote:
LAND AND BUILDING TAX - Assessment - Exemption - Tourism industry - Notification - Interpretation - Rajasthan Lands and Buildings Tax Act, 1964 (18 of 1964), Secs. 21, 27.
Fact of the Case:
Petitioner, running 'Sawan Phuhar Water Park' at Kota, challenged the assessment order dated 5.10.2001, raising a demand of land and building tax under the Rajasthan Land and Building Tax Act, 1964 (Act of 1964). The petitioner claimed exemption from the tax, citing notifications issued by the State Government exempting industrial and residential land and buildings from tax liability.
Finding of the Court:
The Court held that the impugned assessment order was unsustainable as it failed to consider the relevant notifications issued by the State Government, which exempted tourism-related industries from land and building tax. The Court also noted that subsequent notifications had exempted both industrial and residential land and buildings from tax liability with retrospective effect.
Issues: 1. Whether the petitioner's tourism-related industry was entitled to exemption from land and building tax under the relevant notifications issued by the State Government? 2. Whether the impugned assessment order, which failed to consider the exemption notifications, was sustainable?
Ratio Decidendi: 1. The Court interpreted the relevant notifications issued by the State Government and held that tourism was declared as an industry in Rajasthan, and separate slabs of tax rates were provided for industrial units, including tourism-related industries. 2. The Court held that the assessing authority failed to apply its mind to the relevant aspects of the matter and did not refer to the exemption notifications in the impugned assessment order.
Final Decision: The Court allowed the writ petition, quashed the impugned assessment order dated 5.10.2001, and the consequential demand notice dated 31.1.2002.
Relevant Portion of Budget Speech:
"131- egksn; vkidks fofnr gS] jkT; ds 10 ftyksa ds uxjh; {ks=ksa esa Hkwfe ,oa Hkou dj ykxw gSA Hkwfe ,oa Hkou dj ds vfrfjDr] tulkekU; dks x'gdj] vucu ,lslesUV Hkh tek djkuk iM+rk gS ftlls uxjh; {ks=ksa esa jgus okys ukxfjdksa ij dj dk Hkkjh cks> iM+ jgk gSA bl dj ds cks> ls jkgr nsus ds fy, eSa fnukad 1-4-2003 ls Hkwfe ,oa Hkou dj lekIr djuk izLrkfor dj jgk gwaA iqjkus dj nkf;Roksa ds izdj.kksa dk fuiVkjk djus ds fy;s Hkh] ,d uohu dEiksft'ku Ldhe ykbZ tk;sxh] rkfd dj dh iqjkuh nsunkfj;ksa dk Hkh 'kh?kz fuiVkjk gks ldsA"
Finance Department Tax Division
Notification
Jaipur, 12.7.2004
Sub: Complete Exemption Scheme-I
S.O. 101. In exercise of the powers conferred under Section 21 of the Rajasthan Lands and Buildings Tax Act, 1964 (Act No., 18 of 1964), the State Government being of the opinion that it is expedient in the public interest to provide relief to the assessee in the tin-assessed cases related to industrial land or building or both in the manner and conditions given below, it is hereby notified-
1. that any Industrial land or building or both which has not been assessed up to financial year 2002-2003 is hereby exempted from complete tax, interest and penalty retrospectively.
Explanation.-"Industrial land or building" means any land or building as certified for industrial use, by RIICO or Industries Department of Government of Rajasthan.
2. that in case where any advance tax, interest or penalty has already been deposited shall not be refunded.
[No. F.4(67)FD/Tax/2004-61]
By Order of the Governor
Sd/
(Ajitabh Sharma)
Deputy Secretary to Government
xxx xxx xxx
Finance Department Tax Division
Notification
Jaipur, 12.7.2004
Sub: Complete Exemption Scheme-Ill
S.O. 103. In exercise of the powers conferred under Section 21 of the Rajasthan Lands and Buildings Tax Act, 1964 (Act No. 18 of 1964), the State Government being of the opinion that it is expedient in the public interest to provide relief to the assessee in the un-assessed cases in which the annual tax liability does not exceed the limits and in the manner and conditions as mentioned below, it is hereby notified
1. that in case where any Residential, Industrial, commercial and Semi-Commercial land or building or both has already been assessed and the annual payable tax does not exceed Rs. 10,000/- in case of Residential and industrial and Rs. 5,000/- in case of Commercial and Semi-Commercial for any one of the financial year up to 2002-2003 is hereby exempted from tax, interest and penalty retrospectively, from the date of liability or for some of the years if any for which the tax has not been paid.
2. that in case where any tax, interest or penalty have already been deposited it shall not be refunded.
[No. F.4(67)FD/Tax/2004-61]
By Order of the Governor
Sd/
(Ajitabh Sharma)
Deputy Secretary to Government
xxx xxx xxx
Finance Department Tax Division
Notification
Jaipur, 24.3.2005
S.O. 432. In exercise of the powers conferred under Section 21 of t
