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High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE E. PADMANABHAN
B. Sundararajan
Versus
The Government of Tamil Nadu represented by the Special Commissioner
W.P. No. 2022 of 1988
Decided On :Decided on : 28-01-1997
TAXATION - PROPERTY TAX - ASSESSMENT - REDUCTION - RESTRICTION - VALIDITY - G.O.Ms. No. 1182 MA & WS Department dated 27.11.1987 - Clause (b) - Held to be null and void - Taxation Appeals Committee has to decide the appeals on merits and without reference to the said clause.
Fact of the Case:
The petitioner, the former Chairman of the Tiruvallur Municipality, challenged the validity of clause (b) of G.O.Ms. No. 1182 Municipal Administration and Water Supply Department dated 27.11.1987, which restricted the powers of the Taxation Appeals Committee to order a reduction of only 5% out of the increased tax.
Finding of the Court:
The court held that the impugned G.O. was a nullity and it was not binding on the Taxation Appeals Committee, which had to decide the appeals on merits and without reference to the said clause.
Issues: Whether the impugned G.O. was valid and binding on the Taxation Appeals Committee.
Ratio Decidendi: The court held that the impugned G.O. was issued in exercise of executive powers of the State, which could not be exercised in the field already occupied by laws made by the Legislature. The court also held that the impugned G.O. was contrary to the statutory provisions of the Tamil Nadu District Municipalities Act, 1920 and the Rules framed thereunder.
Final Decision: The court declared clause (b) of the impugned G.O. as null and void and directed that orders passed based on the impugned order by the Taxation Appeals Committee had to be clarified.
1. The petitioner, the former Chairman of the Tiruvallur Municipality has challenged the validity of clause (b) of G.O.Ms. No. 1182 Municipal Administration and Water Supply Department dated 27.11.1987 and prayed for issue of a writ of Declaration, declaring that the said G.O. is illegal.
2. It is not necessary to go into the various facts set out by the petitioner as the Writ Petition could be disposed of on the legal contention raised by the counsel for the petitioner. Though the respondent has been served on 25.3.1988, the respondent/State Government has not chosen to file counter.
3. The impugned G.O.Ms. No. 1138 reads as follows:—
Tamil
The petitioner challenges the clause (b) viz. , (M) of the said G.O. Clause (b) of the G.O. as contended by the counsel for the petitioner is a nullity, unenforceable and it should be quashed.
4. Under Part III Chapter VI “Taxation and Finance” Property Tax and other taxes is leviable by the Municipal Council. Section 81 of the Tamilnadu District Municipalities Act, 1920 (herein after referred to as the Act) enables the Municipal Council to levy property tax on all buildings and lands within the municipal limits, subject to exemptions set out in the Act or any other law. Section 82 provides the prescriptive method of assessment of property tax. Section 124 provides that the rules and tables embodied in Schedule IV shall be read as part of said Chapter. In Schedule IV of Taxation and Financial Rules, provisions common to taxes in general have been provided for. The procedure for assessment has also been prescribed in the said schedule. Rule 23 provides for Appointment of Committees, viz. , Taxation Appeals Committee. Rule 25 prescribes an appeal shall be made in writing and shall set-forth concisely and under distinct heads the grounds of objection to the decision or other proceeding appealed against. Rule 26 prescribes the limitation within which such Taxation appeals have to be preferred. Rule 26A prescribes other conditions as well. Rule 28 provides that an assessment or demand of any tax shall be final subject to the decision of the Taxation Appeals Committee thereon. Chapter III provides for the constitution of Municipal Authorities. Sec. 23-A provides there shall be a Taxation Appeals Committee, which shall consist of the Chairman of the municipal council who shall also be the chairman of the Taxation Appeals Committee and four Councilors elected by the Council. Sub-Section (2) of Section 23-A prescribes that the business of the Taxation Appeals Committee shall be transacted in accordance with the rules made by the State Government in this behalf.
5. In exercise of powers conferred by clause (iii) of Section 23A and 308 of the Act, the Tamil Nadu Municipal Taxation Appeals Committee (Transaction of Business) Rules have been framed. A conjoint reading of the said provisions of the Act and the Rules, makes it clear that the Taxation Appeals Committee is a statutory body and as such it exercises quasi judicial function as prescribed under the provisions of the Act. The exercise of quasi judicial function by the Appeals Committee has to be in terms of the provisions of the Act and the Rules framed thereunder. Further a reading of Rule 23, 25, 26A and 27 makes it clear that the Taxation Appeals Committee has to decide the appeal on merits according to the statutory provisions and there is no restriction on such appeal powers of the Taxation Appeals Committee. The assessment or demand of any taxation is final subject to the decision of the Taxation Appeals committee. Rule 28A provides that the powers of the Appeals Committee under rule 23 could be exercised by Special Officer appointed by the State Government and during such period, the Taxation Appeals Committee shall cease to exercise the powers. Sub-Rule (2) of Rule 28A further provides that Special Officer appointed under Sub-Rule (1) shall have the powers of the Taxation Appeals Committee under Rule 23 as well as Rules 25 to 28
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