Karnataka High Court
M/S. Mother Dairy Fruits & vs The Chief Executive Officer on 6 November, 2023
Author: Suraj Govindaraj
Bench: Suraj Govindaraj
-1-
NC: 2023:KHC:39678
WP No. 15163 of 2015
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF NOVEMBER, 2023
BEFORE
THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ
WRIT PETITION NO. 15163 OF 2015 (LB-TAX)
BETWEEN:
1. M/S. MOTHER DAIRY FRUITS &
VEGETABLE (P) LTD,
A WHOLLY OWNED SUBSIDIARY OF
M/S.NATIONAL DAIRY DEVELOPMENT BOARD
Digitally signed by HAVING ITS FRUIT PROCESSING PLANT AT:
NARAYANAPPA
LAKSHMAMMA SY.NOS. 98 & 99,
Location: HIGH COURT KAJISONNENAHALLI VILLAGE,
OF KARNATAKA
WHITEFIELD, HOSAKOTE ROAD,
BANGALORE - 560 067
BY ITS SR.MANAGER
(FINANCE & ACCOUNTS)
MR. SAUMEN DAS GUPTA
... PETITIONER
(BY SRI. SATYANAND B S., ADVOCATE)
AND:
1. THE CHIEF EXECUTIVE OFFICER
BANGALORE URBAN ZILLA PANCHAYAT,
BANGALORE
2. THE SECRETARY & PANCHAYAT
DEVELOPMENT OFFICER,
DODDABANAHALLI GRAMA PANCHAYATH,
BIDARAHALLI HOBLI,
BANGALORE EAST TALUK,
BANGALORE - 560 067
3. KANNAMANGALA GRAMA PANCHAYAT
KANNAMANGALA VILLAGE
BANGALORE EAST
-2-
NC: 2023:KHC:39678
WP No. 15163 of 2015
BANGALORE - 560 067
BY ITS PANCHAYATH DEVELOPMENT OFFICER
... RESPONDENTS
(BY SRI. B.J. SOMAYAJI, ADVOCATE FOR R1 & R3;
SRI NITYANAND V. NAIK, ADVOCATE FOR R2)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO
QUASH THE DEMAND NOTICE VIDE ANNEXURE-U, ISSUED BY
THE R-2, PURSUANT TO A TAX NOTICE DATED.3.12.2007,
[ANNEXURE-J], QUASHED BY THIS HON'BLE COURT IN WP
NO.25820 OF 2010 AND ANOTHER TAX NOTICE
DATED.3.10.2012 [ANNEXURE-Q] AND ETC.
THIS WRIT PETITION COMING ON FOR PRELIMINARY
HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE
FOLLOWING:
ORDER
1. The petitioner is before this Court seeking for the following reliefs:
"1. Issue a Writ or Direction in the nature of certiorari quashing the Demand Notice bearing No.Gra.Pa.CR.08/2007-08 dated Nil (Annexure-U), issued by the 2nd respondent, pursuant to a Tax Notice dated 03.12.2007 (Annexure-J), quashed by this Hon'ble Court in WP No.25820 of 2010 and another Tax Notice dated 03.10.2012 (Annexure-Q).
2. Consequently also issue a Writ or Direction in the nature of Certiorari quashing the Tax Notice dated 03.10.2012 (Annexure-Q) issued by the 2nd respondent.
3. Issue any other appropriate direction as this Hon'ble Court deems fit and proper under the circumstances of the case."-3-
NC: 2023:KHC:39678 WP No. 15163 of 2015
2. The petitioner is a wholly owned subsidiary of National Dairy Development Board (NDDB) carrying on the business of fruit and vegetables processing unit within the jurisdiction of respondent No.1 by employing around 300 persons.
3. The submission of Sri.B.S.Satyanand, learned counsel for the petitioner is that the petitioner provides sanitary and other amenities by itself to its employees as also factory quarters to its employees and as such, the taxes which had to be fixed in respect of said property is to be so fixed under Section 202 of the Karnataka Gram Swaraj and Panchayat Raj Act, 1993 (for short, 'the Act') and not in terms of Section 199 of the Act.
4. It is in view thereof that once earlier when vide Annexure-J, a revision in taxes was made on 03.12.2007, the petitioner had approached this Court by filing Writ Petition in W.P.No.25820/2010 and this -4- NC: 2023:KHC:39678 WP No. 15163 of 2015 Court vide order dated 19.06.2012 had allowed the said Writ Petition setting aside refixing of the tax and demand made thereunder which essentially would relate to Annexure-J and directed the petitioner to deposit 50% of the amount demanded within 8 weeks and further directed the Panchayat to reconsider the matter and take a fresh decision for fixation of revised tax after hearing the petitioner.
5. This, he submits, has not been done and without doing so, a demand was made on 03.10.2012 without hearing the petitioner and without considering the objections raised and as such, the petitioner replied to the same on 10.10.2012 vide Annexure-R which is also not considered and thereafter a demand was made on 28.01.2015 at Annexure-T and by undated letter at Annexure-U, which he submits is contrary to the orders passed by this Court on 19.06.2012 in W.P.No.25820/2010 which the respondent-Panchayat could not have done -5- NC: 2023:KHC:39678 WP No. 15163 of 2015 so without hearing the petitioner more so in terms of Section 202 of the Act.
6. On the above basis, he submits that the Writ Petition has to be allowed and the reliefs sought for are to be granted.
7. Sri.B.J.Somayaji, learned counsel for respondents No.1 and 3 - Panchayat would submit that the reply given to Annexure-Q dated 3.10.2012 on 10.10.2012 vide Annexure-R has not been considered and as such, the petitioner has approached this Court in a premature manner. It is for the respondents to pass orders on the reply given by the petitioner. It is on account of the petitioner having approached this Court and interim order having been passed in this matter, that no orders could have been passed.
8. Heard Sri.B.S.Satyanand, learned counsel for the petitioner and Sri.B.J.Somayaji, learned counsel for respondents No.1 and 3 and Sri.Nityanand V.Naik, -6- NC: 2023:KHC:39678 WP No. 15163 of 2015 learned counsel for respondent No.2 and perused the papers.
9. The short question that would arise in the present matter is whether without complying with the order dated 19.06.2012 passed in W.P.No.25820/2010 by this Court, any demand could have been made by the respondents?
10. Admittedly, the petitioner has deposited 50% of the amount and has complied with its obligation under the order dated 19.06.2012. It was therefore required for the Panchayat to have issued the notice to the petitioner, hear the petitioner and thereafter determine the Tax. Instead of doing so, a demand was issued on 03.10.2012 vide Annexure-Q which has been replied to by the petitioner on 10.10.2012 as regards which no order has been passed by the respondents - Panchayat but a demand was made on 28.01.2015 at Annexure-T followed with another -7- NC: 2023:KHC:39678 WP No. 15163 of 2015 undated demand at Annexure-U, in my considered opinion the reply which had been issued to the notice at Annexure-Q vide Annexure-R dated 10.10.2012 not having been considered, the question of any demand being made by the respondents - Panchayat would not at all arise since the same would be contrary to the directions which have been issued by this Court on 19.06.2012 in W.P.No.25820/2010. Hence, I pass the following:
ORDER i. The Writ Petition is allowed. The reliefs sought for are modulated.
ii. A certiorari is issued. The demand dated 28.01.2015 at Annexure-T and undated demand at Annexure-U are hereby quashed.
iii. The petitioner having complied with the order in W.P.No.25820/2010, Annexure-J having been set aside by this Court in the said matter, the objections filed by the petitioner would have to -8- NC: 2023:KHC:39678 WP No. 15163 of 2015 be taken into consideration by the respondents- Panchayat as also refixation has to be done from the year 2007 onwards and necessary orders be passed thereon before re-fixing the taxes.
iv. The petitioner is permitted to file additional objections within a period of 4 weeks from today without waiting for any further notice from the respondents. The said objections to be filed on or before 11.12.2023. If such objections are filed, respondent No.3 shall hear the petitioner at 3.00 p.m. on 18.12.2023 and pass orders thereon within a period of 60 days thereafter.
v. Needless to say that the amount in deposit shall be adjusted towards any dues borne by the petitioner once such determination is made.
Sd/-
JUDGE PRS