Kerala High Court Directs Reassessment of Land Tax for Properties Permitted Conversion Under KLU Order - 2024-03-02

Background:

The petitioner owned a property that had been permitted conversion for other purposes under the Kerala Land Utilisation Order (KLU Order). The land was removed from the Data Bank, and the petitioner applied to the Tahsildar to change the entries in the Basic Tax Register under Section 6A of the Kerala Land Tax Act, 1961.

Legal Question:

Whether the competent Revenue officials are obliged to reassess the land tax on the basis of the orders obtained under the KLU Order.

Arguments:

The petitioner argued that once an enabling order is passed under Clause 6(2) of the KLU Order, the earlier entries in the Basic Tax Register showing the land as Nilam, Paddy Land, etc. will become superfluous and redundant. Therefore, the competent Revenue officials are obliged under law to make a fresh assessment of the property under Section 6A of the Kerala Land Tax Act, 1961.

The Government Pleader did not present any arguments in the matter.

Court's Analysis:

The Court referred to its earlier judgments in Mary Abraham v. State of Kerala and others and District Collector, Ernakulam and others v. Fr.Jose Uppani and others, where it had held that when an applicant has secured orders under the KLU Order prior to the cut-off date on which Section 27A was introduced to the Kerala Conservation of Paddy Land and Wetland Act, 2008, the competent Revenue officials are bound to consider the subsequent application submitted under the provisions of the Kerala Land Tax Act, 1961.

Decision:

The Court allowed the writ petition and directed the Tahsildar to consider the petitioner's application and pass appropriate orders within two months from the date of receipt of a copy of the judgment.

Conclusion:

The Kerala High Court's decision is significant as it clarifies the obligation of competent Revenue officials to reassess land tax for properties permitted conversion under the KLU Order. This will provide relief to landowners who have been paying higher land tax due to outdated entries in the Basic Tax Register.