THE KERALA BUILDING TAX ACT, 1975*

Act 7 of 1975

2nd April 1975

An Act to provide for the levy of a tax on buildings. WHEREAS it is expedient to provide for the levy of a tax on building; BE it enacted in the Twenty-sixth Year of the Republic of India as follows.— * Received the assent of the Governor on the 2nd day of April, 1975 and published in the Gazette Extraordinary No. 171 dated 2nd April 1975.

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S.1 Short title, extent and commencement

(1) This Act may be called the Kerala Building Tax Act, 1975.

(2) It extends to the whole of the State of Kerala.

(3) It shall be deemed to have come into force on the 1st day of April, 1973.

S.2 Definitions

In this Act, unless the context otherwise requires,—

• (a) "annual value" of a building means the gross annual rent at which the building may at the time of completion be expected to let from month to month or from year to year;
• (b) "appellate authority" means an appellate authority appointed under section 4;
• (c) "assessee" means a person by whom building tax or any other sum of money is payable under this Act and includes every person in respect of whom any proceeding under this Act has been taken for the assessment of the building tax payable by him;
• (d) "assessing authority" means an assessing authority appointed under section 4;
• (e) "building" means a house, out-house, garage, or any other structure, or part thereof, whether of masonry, bricks, wood, metal or other material, but does not include any portable shelter or any shed constructed principally of mud, bamboos, leaves, grass or thatch or a latrine which is not attached to th
  

S.3 Exemptions

(1) Nothing in this Act shall apply to—

• (a) buildings owned by the Government of Kerala or the Government of India or any local authority; and
• (b) buildings used principally for religious, charitable or educational purposes or as factories or workshops.

Explanation.—For the purposes of this sub-section, "charitable purpose" includes relief of the poor and free medical relief.

(2) If any question arises as to whether a building falls under sub-section (1), it shall be referred to the Government and the Government shall decide the question after giving the interested parties an opportunity to present their case.

(3) A decision of the Government under sub-section (2) shall be final and shall not be called in question in any court of law.

S.4 Authorities

(1) The Government may, by notification in the Gazette, appoint such officers as they think fit to be assessing authorities for the purposes of this Act and may assign to them such local limits as the Government may think fit.

(2) The Government may, by notification in the Gazette, appoint such officers as they think fit to be appellate authorities for the purposes of this Act and may assign to them such local limits as the Government may think fit.

(3) All officers and persons employed in the execution of this Act shall observe and follow the orders, instructions and directions of the Board of Revenue:

Provided that no such orders, instructions or directions shall be given so as to interfere with discretion of the appellate authority in the exercise of its appellate functions.

S.5 Charge of building tax

(1) Subject to the other provisions contained in this Act, there shall be charged a tax (hereinafter referred to as "building tax") at the rate specified in the Schedule in respect of every building the construction of which is completed on or after the 1st day of April, 1973, and the capital value of which exceeds twenty thousand rupees.

(2) Every major repair of, or improvement to, a building constructed before the 1st day of April, 1973, made on or after that date shall be liable to the building tax at the rate referred to in sub-section (1) on the difference between the capital value of the building before effecting the major repair or improvement, as the case may be, and the capital value of the building after effecting the major repair or improvement.

(3) A building the construction of which is completed on or after the 1st day of April, 1973, and which is not liable to be taxed under the provisions of this Act on account of its having a capital value of not mor

S.6 Determination of capital value

(1) For determining the capital value for the purposes of this Act, the annual value of a building shall be the annual value fixed for that building in the assessment books of the local authority within whose area the building is situate.

(2) Notwithstanding anything contained in sub-section (1), if the assessing authority is of opinion that the annual value fixed for a building in the assessment books of the local authority is too low, it may, after giving the person or persons affected thereby an opportunity of being heard, fix the annual value of the building.

(3) Where the local authority has not fixed the annual value of a building in any case falling under sub-section (2) or sub-section (3) or sub-section (4) of section 5 within a period of six months after the completion of the repair or improvement or the construction or addition or combination, as the case may be, the assessing authority may, after giving the person or persons affected thereby an opportunity

S.7 Return of completion, etc., of building

(1) The owner of every building—

• (a) the construction of which is completed on or after the 1st day of April, 1973, and the estimated capital value of which is more than twenty thousand rupees; or
• (b) the construction of which was completed before the 1st day of April, 1973 and to which major repairs or improvements are made after the said date; or
• (c) the construction of which has been completed on or after the 1st day of April, 1973, and whose capital value subsequently increases to more than twenty thousand rupees due to new constructions or additions or combinations or as a result of repairs or improvements; or
• (d) which has already been taxed under this Act and the capital value of which subsequently increases by more than ten thousand rupees by new constructions or additions or combinations or as a result of repairs or improvements,

shall furnish to the assessing authority a return in the prescribed form and verified in th

S.8 Return after due date and amendment of return

If any person has not furnished a return within the time allowed by or under section 7, or having furnished a return under that section discovers any omission or wrong statement therein, he may furnish a return or a revised return, as the case may be, at any time before the assessment is made.

S.9 Assessment

(1) If the assessing authority is satisfied that a return made by an owner under section 7 or section 8 is correct and complete, it shall assess the amount payable by him as building tax on the basis of the return.

(2) If the assessing authority is not so satisfied, it shall serve a notice on the assessee either to attend in person at its office on a date to be specified in the notice or to produce or cause to be produced on that date any evidence on which the assessee may rely in support of his return.

(3) The assessing authority, after hearing such evidence as the assessee may produce and such other evidence as it may require on any specified point and after conducting such inquiries or inspection as it may consider necessary, shall, by order in writing, assess the amount payable by him as building tax.

(4) For the purpose of making an assessment under this Act, the assessing authority may serve on any person who has made a return under sub-section (1) of sec

S.10 Notice of demand

When any building tax is due in consequence of any order passed under or in pursuance of this Act, the assessing authority shall serve on the assessee a notice of demand in the prescribed form specifying the sum so payable.

S.11 Appeals

(1) Any assessee objecting to the amount of building tax assessed under section 9 or denying his liability to be assessed under this Act may appeal to the appellate authority against the assessment or against such order:

Provided that no such appeal shall lie unless the building tax has been paid.

(2) An appeal under sub-section (1) shall be in the prescribed form and shall be verified in the prescribed manner.

(3) The appeal shall be presented within a period of thirty days from the date of service of the notice of demand relating to the assessment or the date of service of the order, as the case may be, but the appellate authority may admit an appeal presented after the expiration of the said period if it is satisfied that the appellant had sufficient cause for not presenting it within the said period, provided however that no such appeal shall be admitted after a period of six months from the date of service of the notice of demand relating to the assessment

S.12 Reference to District Court

(1) The appellate authority may, if it is satisfied either suo motu or on application by any party to an appeal under section 11 that the decision on the appeal involves a question of law, draw up a statement of the case and refer it to the District Court.

(2) If the District Court is not satisfied that the statement in a case referred under this section is sufficient to enable it to determine the question raised thereby, the court may refer the case back to the appellate authority to make such additions thereto or alterations therein as the court may direct in that behalf.

(3) The District Court, upon the hearing of any such case, shall decide the question of law raised therein and shall deliver its judgment thereon containing the grounds on which such decision is founded and shall send a copy of such judgment under the seal of the court to the appellate authority which shall pass orders on the appeal in conformity with such judgment.

(4) For the purposes of t

S.13 Power of revision of the District Collector

13. Power of revision of the District Collector.—(1) The District Collector may, either suo motu or on application by any person aggrieved, call for and examine the record of any order passed by the appellate authority or the assessing authority and may pass such order in reference thereto as he thinks fit

Provided that no such order shall be passed under this sub-section without notice to the party who may be affected by the order:

Provided further that the District Collector shall not call for and examine the record of any order passed by the assessing authority—

• (a) if the period of thirty days specified for presentation of appeal under sub-section (3) of section 11 has not expired; or
• (b) if an appeal against that order is pending before the appellate authority:

Provided also that no order passed on the basis of a reference under section 12 to the extent covered by the answer to such reference shall be subject to revision by the

S.14 Power of revision of the Government

14. Power of revision of the Government.—The Government may, on application by any person aggrieved, call for and examine the record of any order passed by the District Collector suo motu under section 13, for the purpose of satisfying themselves as to the propriety or regularity of such order and pass such order in reference thereto as they think fit

Provided that the Government shall not revise any order under this section after the expiry of sixty days from the date on which that order was communicated to the applicant:

Provided further that an order to the prejudice of any person shall not be passed under this section unless that person has been given a reasonable opportunity to show cause against such order.

S.15 Rectification of mistakes

15. Rectification of mistakes.—(1) The appellate authority or the revisional authority may, at any time within three years from the date of an order passed by it on appeal or revision, as the case may be, and the assessing authority may, at any time within three years from the date of any assessment or order passed by it, or its own motion, rectify any mistake apparent from the record of the appeal, revision, assessment or order, as the case may be, and shall, within the like period, rectify any such mistake which has been brought to its notice by an assessee:

Provided that no such rectification shall be made which has the effect of enhancing an assessment or reducing a refund unless the assessee has been given a reasonable opportunity of being heard in the matter.

(2) Where any such rectification has the effect of reducing the assessment, the assessing authority shall make any refund which may be due to such assessee.

(3) Where such rectification has the effec

S.16 Revision of building tax when annual value is revised by local authority

16. Revision of building tax when annual value is revised by local authority.—(1) Where the annual value of a building fixed by a local authority is enhanced or reduced under the law governing that local authority on the ground that the annual value originally fixed was excessive or low, the building tax levied under this Act shall be revised by the assessing authority in conformity with such enhancement or reduction:

Provided that an assessment under sub-section (2) or sub-section (3) of section 6 shall not be revised under this sub-section.

(2) The provisions of sections 10, 11, 12, 13, 14 and 15 shall apply to an order passed by the assessing authority under sub-section (1) as if it were an order passed by it under section 9.

S.17 Power to take evidence on oath, etc

17. Power to take evidence on oath, etc.—The assessing authority, the appellate authority and the revisional authority shall, for the purpose of this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), when trying a suit, in respect of the following matters, namely:—

• (a) enforcing the attendance of any person and examining him on oath or affirmation;
• (b) compelling the production of documents;
• (c) issuing commissions.

S.18 Payment of building tax

18. Payment of building tax.—Any amount specified as payable in a notice of demand under section 10, or an order under section 11 or section 13 or section 14 shall be paid in such number of instalments, within such time, at such place and to such person, as may be prescribed, and any assessee failing so to pay shall be deemed to be in default

S.19 Mode and time of recovery

(1) When building tax is not paid on the due date, the arrears of the tax shall bear interest at the rate of six per cent per annum from the date of default.

(2) The arrears of building tax and the interest, if any, thereon shall be a first charge on the building in respect of which it is payable, and notwithstanding anything contained in any other law, the claim for such arrears and interest shall have precedence over the claim for any tax levied by a local authority, and such amount shall be recoverable under the law for the time being in force relating to the recovery of arrears of public revenue due on land.

S.20 Refunds

20. Refunds.—(1) If any person satisfies the assessing authority that the amount of building tax paid by him exceed the amount with which such person is properly assessable under this Act, he shall be entitled to a refund of such excess

(2) The appellate authority in the exercise of its appellate powers or the revisional authority in the exercise of its revisional powers, if satisfied to the like effect, shall cause a refund to be made by the assessing authority of any amount found to have been wrongly paid or paid in excess

S.21 False statements in declaration

21. False statements in declaration.—If any person makes a statement in a verification mentioned in section 7 or sub-section (2) of section 11 which is false and which he either knows or believes to be false or does not believe to be true, he shall be deemed to have committed the offence described in section 177 of the Indian Penal Code (Central Act 45 of 1860)

S.22 Failure to furnish return

22. Failure to furnish return.—(1) If any person fails without reasonable cause or excuse to furnish in due time any return specified in sub-section (1) or sub-section (3) of section 7, the assessing authority, the appellate authority or the revisional authority may impose a penalty which may extend to five rupees for every day during which the default continues.

(2) The penalty imposed under sub-section (1) may be recovered in the same manner as arrears of building tax

S.23 Power of inspection

23. Power of inspection.—(1) The assessing authority or any officer authorised by the assessing authority, the appellate authority or the revisional authority in this behalf may, after due notice, at any time between sunrise and sunset, enter any building for the purpose of collecting particulars relating thereto or for taking measurements of the building or any repairs or improvements or any constructions or additions or combinations and may require the owner of the building or any other person in charge or in occupation of the building to produce for inspection any book, register or record kept therein and ask for any information relating to the building or the repairs or improvements or the constructions or additions or combination, as the case may be, and the owner of the building or other persons in charge or occupation shall be bound to afford facilities for taking measurements and for such inspection, and to furnish such information as is available with him.

(2) Any p

S.24 Prosecutions

24. Prosecutions.—(1) A person shall not be proceeded against for an offence under section 21 or section 23 except at the instance of such officer as may be authorised by the Government in this behalf.

(2) Before instituting proceedings