Madras High Court
Keelakarai Home Tax Payers Association ... vs Keelakarai Town Panchayat Represented ... on 5 March, 1990
Equivalent citations: (1990)1MLJ384
Author: M. Srinivasan
Bench: M. Srinivasan
ORDER M. Srinivasan, J.
1. These two writ petitions are directed against the special notices issued by the respondent-Panchayat for assessment of house-tax on the basis of general revision. It is the contention of the petitioners that the notices are not in accordance with the Rules framed under the Panchayat Act which have been interpreted by this Court in earlier cases.
2. In Nemili Town Panchayat represented by Executive Officer v. Nemili Town Panchayat Tax payers' Welfare Association, W.A.No. 222 of 1989 of judgment dated 15.3.1989, a Division Bench of this Court has held that a notice informing the assessee of the enhancement of tax shall contain reasons for increase, if any, and unless the reasons are set out in the notice, it cannot be said that proper opportunity is given to the assessee to state his objections against the assessment. The Bench approved the earlier decision of a single Judge of this Court in Dalavai v. Government of Tamil Nadu .
3. In these cases, the notices issued to the petitioners contained a column mentioning the annual rental value. In that column, the annual rental value as it existed prior to the issue of notices is mentioned and the amended value is mentioned in the same coloumn. Consequently, the other coloumns contain the existing tax and the proposed tax.
4. Learned counsel for the respondent contends that a special notice is necessary only when Rule 10 (3) is invoked in the case of a revision of assessment in between two general revisions. According to him, such a notice is not necessary if there is a revision of assessment pursuant to a general revision. This contention cannot be accepted in view of the express language used in Rule 10 (4) of the Rules for assessments and collection of tax framed under the Tamil Nadu Panchayats Act, 1958. It will be advantageous to extract Rule 10 (3) also. That Rule reads as follows:
In every case in which, between one general revision and another, the executive authority assesses any house for the first time or increases the assessment on any house otherwise than in consequence of a general enhancement of the rates at which the house-tax is leviable, the executive authority shall intimate by a special notice to the owner or occupier of such house that a petition for revising the assessment will be considered if it reaches the panchayat office within sixty days from the date of such notice in the case of the Government, a railway administration or a company and within thirty days from the date of service of such notice in other cases.
Rule 10 (4) is in the following terms:
When assessment books have been prepared for the first time and whenever a general revision of such books has been completed, the executive authority shall give public notice stating that revision petitions will be considered if they reach the panchayat office within a period of sixty days from the date of such notice in the case of the Government, a railway administration or a company and of thirty days from the said date in other cases. The notice shall be affixed to the notice board of the panchayat office and oft the same day he published in the town by beat of drum:
Provided that in every case where there is an enhancement in the assessment, the executive authority shall also cause intimation thereof to be given by a special notice to be served on the owner or occupier of the house concerned; Provided further that, in every case where a special notice is required to be served on the owner or occupier under the first proviso, the period of sixty days and thirty days referred to in the rule shall be calculated from the date of service of such special notice.
5. Learned counsel for the respondent contends that the first provise to the Sub-rule (4) of Rule 10 will apply to a situation contemplated in Sub-rule (3) of Rule 10 and not in the main part of Sub-rule (4). I cannot agree with this contention. Sub-rule (3) is a self-contained rule. That itself enjoins the authority to issue a special notice whenever there is a revision between one general revision and another. Sub-rule (4) speaks of general revision or preparation of assessment books for the first time. The First Proviso applies to a case where there is an enhancement in the assessment. Even in the cases of general revision, if there is no enhancement of assessment, there is no necessity to invoke the proviso. But whenever there is an enhancement in the assessment, it is the duty of the executive authority to issue a special notice as provided under the Proviso.
6. What exactly such a special notice should contain has been prescribed by the Bench of this Court in the judgment referred to already. Hence, the special notices issued by the respondent in these cases which are not in accordance with the judgment of the Bench, cannot be sustained. Consequently the notices are quashed on the only ground that the reasons for the enhancement are not set out in the notices.
7. The respondent is directed to issue fresh special notices containing the reasons for the enhancement. It is certainly open to the respondent to issue special notice for the year commencing from 1.4.1987, i.e., for the year 1987-88. On receipt of such notice, it is for the petitioners to file their objections or apply for revision of the proposed enhancement. Thereupon, the respondent shall consider the same and pass appropriate orders. With the above directions, these writ petitions are allowed. There will be no order as to costs.