JUDGMENT

1. The Seberang Prai Power Station (Power Station) is owned by and built for the Applicant Tenaga Nasional Berhad for the sole purpose of generating electricity for sale. The Power Station is located on land owned by the Applicant within the jurisdiction of the Respondent, Majlis Perbandaran Seberang Perai, a local authority under the Local Government Act 1971 (the LGA). The Respondent is authorized under section 127 of the LGA to impose rates upon the Applicant. Section 130 thereof places certain limits to the local authority's power.

2. Sections 127 and 130 of the LGA reads as follows:

127. Power to impose rates.

The local authority may, with the approval of the State Authority, from time to time as is deemed necessary, impose either separately or as a consolidated rate, the annual rate or rates within a local authority area for the purposes of this Act or for other purposes which it is the duty of the local authority to perform under any other written law.

130. Limitation of assessment rate.

(1) Any rate or rates imposed under this Part may be assessed upon the annual value of holdings or upon the improved value of holdings as the State Authority may determine.

[Am. Act A436]

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