The court established that the exemption notification dated 27.05.1998 provided specific exemption for both land and building, and the liability to pay tax on land and building commencing operation in the FY 1997-1998 would only arise in the AY 1998-1999, as per Section 13(1)(b) of the Act of 1964.

ORDER :

1. The present writ petition was filed seeking the following reliefs:

“(i) an appropriate writ, order or direction quashing the assessment orders dated 28.12.1999 & 20.12.2001 [Annexure.3 & 4] passed by the respondent no.2 and the Appellate Order dated 16.01.2003 [Annexure.5] passed by the Director, Land & Building Tax, Rajasthan, Jaipur and impugned Revisional order dated 17.07.2006 [Annexure.6] passed by the Divisional Commissioner, Jaipur;

(ii) an appropriate writ, order or direction, it may be declared that the subject land and building comprised in Hotel Trident, Jaipur which became liable to pay land & building tax w.e.f. 01.04.1998 is exempt from payment of tax for a period of four years from the date the hotel was put to use;

(iii) Cost of the writ petition be also awarded in favour of the humble petitioners.

INTERIM RELIEF:

(iv) Operation of the assessment orders dated 28.12.1999 & 20.12.2001 [Annexure.3 & 4] passed by the respondent no.2 and the Appellate Order dated 16.01.2003 [Annexure.5] passed by the Director, Land & Building Tax, Rajasthan, Jaipur and impugned Revisional order dated 17.07.2006 [Annexure.6] passed by the Divisional Commissioner, Jaipur may be stayed till the disposal of the writ petition;

(v) Any other appropriate writ, order(s) or direction(s) which the Hon’ble Court deems just and proper in the facts and circumstances of the case may also be passed in favour of the petitioners;”

2. Learned counsel for the petitioners submits that the petitioner-company acquired two plots of land bearing numbers 137 and 138, situated at Jhotwara Industrial Area from Rajasthan State Industrial Development & Investment Corporation Limited, Jaipur for construction of its industrial unit vide registered Lease Deed dated 20.11.1997 and constructed its industrial unit, which was completed and started functioning w.e.f. 29.03.1998. It is contended that since the construction was concluded in the Financial Year (for short “FY”) 1997-1998, as such, the unit became liable to be assessed from 01.04.1998. The unit of the petitioner was exempted from payment of Land & Building Tax for a period of four years from the date of starting of commercial functioning, as provided in Notification No. SO 60 dated 27.05.1998 issued by Department of Finance (Taxation Section) of the Government of Rajasthan. However, by misinterpreting the contents of Notification dated 27.05.1998, the land of the aforesaid plots was valued at Rs. 35.08 lakhs (approx) and accordingly tax was imposed thereupon by impugned assessment order dated 28.12.1999 (Annexure-3). Another assessment order was passed on 20.12.2001 (Annexure-4) for the period 01.04.2000 valuing the land at Rs. 31.64 lakhs (approx). Appeal against the assessment orders was first dismissed vide order dated 16.01.2003 by the Appellate Authority, Director, Land & Building Tax, Jaipur. Further, the revision petition was also dismissed by the Revisional Authority, Divisional Commissioner, Jaipur vide order dated 17.07.2006.

3. Learned counsel for the petitioner has challenged the impugned levy of Land & Building Tax, primarily, on the following grounds:

3.1) That as per notification dated 27.05.1998, any new industrial unit liable to pay tax w.e.f. 01.04.1998 is exempt from payment of tax for a period of four years from the date of commercial production provided commercial production of these industrial units has been commenced before 31.03.2003. It is contended that the interpretation adopted by all the authorities below of the exemption notification dated 27.05.1998 qua commencement of commercial production after 01.04.1998 but before 31.03.2003 is ex-facie erroneous and against the plain language of the notification.

3.2) That the orders of all the authorities below are contrary to the provision of Section 13 of the Rajasthan Lands & Building Tax Act, 1964 (for short “Act of 1964”) which