Honble LAKSHMANAN, CJ.–The present writ petition and other writ petitions (mentioned in the appended Schedule) raise an interesting question of law in the matter of one time tax scheme introduced by way of insertion of Section 3(1B) of the Finance Act, 1989 (Act No. 6 of 1989)

(2). The questions for our consideration are that:-

(1) Whether, fresh assessment is permissible under the law in respect of the land held by the previous owner who had exercised the option in terms of one time tax scheme prescribed by Section 3(1B) of the Rajasthan Land and Buildings Tax Act, 1984 (hereinafter referred to as `the Act) even though the certificate exempting the aforesaid land from the future tax liability had been issued by the competent officer of the department?

(2) Whether the tax under the Act is upon a land or building or both separately as units and when the property in question has already been subjected to tax, the question of any further tax liability under the Act can arise merely on account of the transfer of such property?

(3) Whether, the change in ownership is wholly inconsequential?

(4) Whether, Section 3 which is the main charging section does authorise fresh levy on a property which has already suffered tax?

(5) Whether, clause (c) of Section 3(1B) of the Act subjects the assessee to pay tax on rebuilt or enlarged building on which one time tax has been paid? and;

(6) Whether, Sections 13 and 15 of the Act are violative of Article 265 of the Constitution of India which clearly lays down that no tax shall be levied or calculated except by an authority of law?

(3). The short facts leading to the above case are as follows:-

(4). The petitioner No. 1 M/s. East India Hotels Ltd. is a company duly incorporated under the Companies Act. The company has its operations in ali over the country including at Jaipur and at Udaipur in the State of Rajasthan. Petitioner No. 2 Shri O.P. Arora is the shareholder of the company and is Director Deposits. The land which has been acquired by the petitioner company at Udaipur is being subjected to proceedings for reassessment for Levy and charge to tax by the Assistant Director, Land & Building Tax Department, Government of Rajasthan, Udaipur for and on behalf of the Government of Rajasthan. The order impugned in this writ petition is dated 8th of December, 1997 which has been passed by the Rajasthan Taxation Tribunal at Jaipur.

(5). The petitioner with the object of establishing a new five star luxury hotel in Udaipur had obtained a lease in respect of land measuring approximately 75 acres located in Haridasji Ki Magri, Udaipur from M/s. Lake Palace Hotels and Motels Pvt. Ltd. The lease dead was duly executed and registered on 17th of December, 1992. The lease hold rights were transferred for a period of 72 years in terms of the lease deed dated 17th of December, 1992. As per the petitioners the land in question had been subjected to the proceedings under the provisions of the Rajasthan Land 7 Buildings Tax, 1964 (hereinafter referred to as `the Act of 1964) in an assessment order dated 1.7.1981 in the name of Late Maharana Shri Bhagwat Singhji under GIR No. M-92 and in respect of which an annual tax liability of Rs. 3,990/- had been affixed. It was represented by the lessor that not only the entire tax liability, as determined by the assessment order dated 1.7.1981 was duly deposited for and up to the date of transfer but also that an option in terms of Section 3(1B) of the Act of 1964 had been exercised by the lessor by depositing the life time tax and that such an option was duly accepted by the respondent No. 2, who ultimately issued a certificate of exemption from all future liabilities under provisions of the said Act in terms of the aforesaid Section 3(1B) of the Act. The certificate bears No. 19279 has been registered in his DNCR as 3/29 on 15th of May, 1992. As per the case of the petitioners, based on the aforesaid representations by the lessor and upon legal advise tendered the petitioner c

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