Madhya Pradesh High Court
South Eastern Coal Fields Ltd. vs The State Of Madhya Pradesh on 10 October, 2012
1
W.P. No.17043/2012
S.E.C.L vs. State of M.P. & Ors.
10.10.2012
Heard Smt. Indira Nair, learned Senior Counsel
with Shri Rajas Pohankar for the petitioner, on the
question of admission and interim relief.
The petitioner has filed this petition being
aggrieved by the demand notice issued by the
respondent Municipal Council dated 22.9.2012
whereby the petitioner has been asked to deposit a sum of Rs.1,10,22,122/- towards arrears of property tax.
It is submitted by the learned Senior Counsel for the petitioner that the petitioner is a Government of India undertaking and has been regularly depositing tax on the basis of its self-assessment till the year 2012. It is submitted that the tax assessed by the petitioner has been paid on the basis of the survey and assessment that the petitioner had conducted through the Civil Department of the petitioner and, thereafter, on the basis of the land exigible to tax the petitioner has been regularly depositing tax in accordance with the rates as prescribed by the Council through a resolution adopted by them.
It is stated that the Council, without taking into consideration the aforesaid aspect or actually assessing the area which would be subjected to tax, 2 W.P. No.17043/2012 S.E.C.L vs. State of M.P. & Ors.
has initially issued a notice to the petitioner asking the petitioner to deposit arrears of tax of Rs.55,11,061/- on 23.1.2012. As the petitioner questioned the aforesaid demand, the respondents have issued the subsequent impugned demand notice dated 22.9.2012 asking the petitioner to deposit an amount which is double the initial amount i.e. Rs.1,10,22,122/-.
The petitioner submits that the respondent Corporation is issuing the aforesaid demand notice without conducting any inquiry or verifying the facts of the case or assessing the area exigible to tax as required by the provisions of law and in such circumstances the respondent authorities be directed to first undertake the aforesaid exercise, pass a detailed reasoned assessment order and thereafter take up proceedings in accordance with law.
Looking to the facts and circumstances of the case and the provisions of Section 126 of the Act, which provides for payment of tax on the basis of self-assessment and the provision of Section 126(3) of the Act, which provides for conducting enquiry into the self-assessment submitted by the assessee and, thereafter taking action in accordance with law, the petition filed by the petitioner is disposed of with 3 W.P. No.17043/2012 S.E.C.L vs. State of M.P. & Ors.
a direction to the respondent Municipal Council to first conduct an enquiry into the matter, get a joint inspection conducted into the actual area of the property of the petitioner which is exigible and liable to tax, excluding the exempted part, take into consideration the amount of tax already deposited by the petitioner, reassess the tax on the basis of the rates as prescribed and prevalent from time to time, pass a reasoned order of assessment after hearing the petitioner, communicating the same to the petitioner and thereafter take action in accordance with law. To enable the Municipal Council to do so, a copy of the order passed today and a copy of the petition be served upon the authority by the petitioner.
It is further directed that till the aforesaid exercise is not completed by the respondents no coercive steps pursuant to the impugned demand notice shall be taken from the petitioner which even otherwise would be subject to the final orders of assessment.
It is, however, made clear that this Court has not expressed any opinion on the merits of the case and therefore the authority would be at liberty to examine the matter keeping all facts and facets into consideration, give due opportunity of hearing to the 4 W.P. No.17043/2012 S.E.C.L vs. State of M.P. & Ors.
petitioner and thereafter pass a reasoned order in accordance with law.
With the aforesaid direction, the petition filed by the petitioner stands disposed of.
C.C as per rules.
( R. S. JHA ) JUDGE mms/-