Property tax assessments must be based on the actual or reasonably expected letting value of the premises as prescribed by statute. Administrative resolutions that fix arbitrary tax formulas contrary to the legislative Act are void and unenforceable, and taxpayers must exhaust statutory appellate remedies for factual assessment disputes.

COMMON ORDER

1.Heard both sides.

2.These writ petitions have been filed by a registered trust challenging the levy of property tax on the wedding hall which is being run by it and for renewal of trade license.

3.There is no dispute that the land on which the wedding hall has been constructed belongs to M/s.Cosmopolitan Club, Madurai. It was leased out in favour of the petitioner / trust vide registered lease deed dated 21.10.1999. The petitioner was paying half-yearly tax of Rs.12,877/- since 01.04.2001. It was subsequently enhanced to Rs.28,973/- with effect from 01.04.2008. While so, in the year 2017, the petitioner received demand notice for assessment of property tax to the tune of Rs.4,65,934/-. Challenging the said notice dated 28.08.2017, the petitioner filed W.P.(MD)No.8918 of 2018. The writ petition was disposed of vide order dated 09.09.2020. It was noted that only a provisional assessment had been made. Since the petitioner had already lodged their objections on 19.09.2017, the corporation was directed to consider the same and pass order in accordance with law. The proceedings initiated against the assessee were directed to be put on hold till final order was passed. Paragraph No.4 of the said order reads as follows:-

“4.This writ petition stands disposed of, with this direction. Till final orders are passed, the impugned assessment will not be given effect to. If the petitioner is aggrieved by the final orders that may be passed by the respondents, the petitioner will only go before the statutory Tribunal and not once again invoke writ jurisdiction of this Court. No costs. Consequently, connected miscellaneous petitions are closed.”

Pursuant to the said direction given by this Court, inspection was conducted and the impugned order came to be passed on 08.02.2023 revising the property tax w.e.f. 2011. The corporation determined the half-yearly tax as Rs.5,48,819/-. This sum was enhanced to Rs.11,55,584/- w.e.f. 2022 – 2023.

4.The learned senior counsel appearing for the writ petitioner reiterated all the contentions set out in the affidavits filed in support of the writ petitions. Detailed written submissions were filed and I was taken through its contents. The primary contention put forth by the learned senior counsel for the writ petitioner is that the Madurai Corporation was not justified in revising the property tax so steeply and that too with retrospective effect. She pointed out that there is dispute regarding the measurement of property. It is her further contention that the respondents cannot go against the special category status adopted by them with regard to the wedding halls within Madurai limits. She pointed out that vide Resolution No.98 dated 24.09.1998, wedding halls (Kalyana Mandapams) have been mentioned as falling under a special category. The Kalyana Mandapams were classified under different categories depending upon their location. The annual rental value was arrived at on the basis of notional rent for 48 bookings per year ie., 4 functions per month and allowing 25% as a deduction towards maintenance and other heads. The half-yearly tax payable by the petitioner was accordingly determined at the rate of Rs.12,877/- w.e.f 01.04.2001. This amount was periodically revised based on government orders issued from time to time. That is how, the amount of Rs.12,877/- became Rs.28,973/- w.e.f. 01.04.2008. According to the learned senior counsel, if the government orders and the resolutions adopted by