Payment of water tax is mandatory if levied according to law.

ORDER :- This writ petition has been filed praying for a writ of certiorari to call for the records of the respondents pertaining to the cut off notice dated 20-2-98 and to quash the order therein.

2. Heard both sides.

3. The short facts involved in this writ petition are: The petitioner was served with notice dated 20-2-98 to pay tax at the rate of Rs. 7431.85 for every half year with effect from I-1992-1993. The original tax to the said property was Rs. 2448/- per half year. Prior to the said notice no demand notice was served by the respondents. Hence prayed for the quashing of the impugned notice.

4. Learned counsel appearing for the petitioner argued that prior to the impugned order no notice was issued by the respondent, that under Sec. 34(1) of the Act the respondent Board shall levy both Water and Sewerage taxes, that under Sec. 34(2) the water tax shall not be more than 20% of the assessed annual value of the property and the sewerage tax shall not be more than 10% of the annual value of the property and that under Sec. 34(5) of the Act, the Board may exempt any local area from whole or portion of the aforesaid taxes on the ground that such area is not deriving any or the full benefit of the water supply or sewerage system. Learned counsel further argued that the petitioner's building was not brought under any facility of water or sewerage connection as such they are not liable to pay any tax for water or sewerage connection.

5. Learned counsel for the petitioner also argued that the impugned notice referred to non-payment of bills, but no notices in respect of the alleged arrears were issued ever before. He also argued that there was no levy nor a demand but the impugned cut off notice alone was served on the petitioner.

6. Learned counsel for the respondents denied that the petitioner theatre is not availing the facility of water supply and drainage, that the property owners are liable to pay tax in respect of water and sewerage connection whether they avail it or not and that the petitioner has not placed any record to show that they have constructed septic tank for the disposal of the sullage and sewerage water without availing the service of the board. Being a component of property tax water and sewerage tax is not related and referable to any particular service rendered to a particular individual but it is a general levey collected from the public for providing and implementing welfare measure. Whenever the annual value of the property is revised by the Chennai Corporation, the same is being automatically adopted by and reflected in the revenue records of the Board. Learned counsel further argued that the water and sewerage tax is levied at 3.5% per half year based on the annual value fixed by the Chennai Corporation. The said annual value of the petitioner premises was enhanced by Chennai Corporation from Rs. 69,943/- to 2,12,339/- for the period commencing from I/92-93, consequently the water and sewerage tax was taxed at Rs. 7,431.85 per half year. The petitioner is liable to pay the revised rate of Rs. 7,431.85 per half year. The demand card No. 16001 in respect of the said tax was issued by the petitioner on 30-5-1996 by Registerered Post Acknowledgment Due. On 17-2-1997 the petitioner was further informed to pay the arrears amounting to Rs. 14,504.40 per the period from I/94-95 to II/96-97. Again the petitioner was called upon to pay the arrears amount of Rs. 72,343.90 based on the enhanced annual value on 16-10-1996. The final reminder was issued on 20-2-1998 which is challenged in the present writ petition. As the petitioner has failed to comply with the said demand within the stipulated period he is liable to pay the surcharge.

7. Learned counsel appearing for the petitioner relied upon the decision reported in M/s. Kutty Flush Doors and Furniture Co. Ltd. v. Madras Metropolitan Water Supply and Sewerage Board 1995 (2) MLJ 467 : (1996 AIHC 1097) wherein it is held that the Board has to fix the annual