CHHAGAN LAL Vs. MUNICIPAL CORPORATION INDORE

JUDGEMENT

(1.) This appeal is by special leave against the judgment and order of the High Court of Madhya Paradesh, Bench at Indore, revising the order of the Additional District Judge and holding that the appellant is liable to pay tax from April 1, 1954 and not from April 1, 1965 only as held by the District Judge.

(2.) The appellant is the owner of a factory at No. 1, Shivaji Nagar, Indore. On January 8, 1954 the rental of the factory was assessed at Rs. 564 per month and the house-tax payable at Rs. 475/14/ with effect from April 1, 1951.

(3.) The dispute is whether tax is payable form April 1, 1954. By an order dated March 20, 1956 the house-tax was determined at Rs. 891/1/- per annum by the Municipal Corporation with effect from April 1, 1954. Against the said assessment the appellant preferred an appeal before the Municipal Appeal Committee, Indore. The Appeal Committee allowed the appeal and remanded the case for deciding it on merits after giving a hearing to the appellant. After remand the Municipal Corporation again inquired into the matter and determined the rental value at Rs. 940/- per month and reduced the tax to Rs. 793/2/- per year by an order dated 11th February, 1957 as payable from April 1, 1954. The appellant objected to the assessment and gave notice of objection under S. 147 (1) of the Madhya Pradesh Municipal Corporation Act, 1956, but the Municipal Commissioner. The appellant preferred an appeal being Miscellaneous Appeal No. 41 of 1957 to the 1st Additional District Judge, Indore. By an order dated March 10, 1960 the Additional District Judge allowed the appeal and remanded the case for decision afresh after proper inquiry. On remand a notice dated February 11, 1963 was issued to the appellant under S. 144 (1) of the Madhya Pradesh Municipal Corporation Act, 1956 as amended by Act 13 of 1961 calling upon him to furnish the required information. The Corporation also issued another notice to the appellant on May 7, 1964 informing the appellant that the Junior Overseer had submitted a report that considerable changes have been effected in the factory and calling upon him to submit a detailed plan. The appellant replied asking for details. Subsequently the appellant received a notice dated October 12, 1965 under S. 146 of the Madhya Pradesh Municipal Corporation Act whereby he was informed that the annual valuation of the property was assessed at Rs. 10,870.20 and Rupees 764.18 was fixed as the annual property tax with effect from April 1, 1954. He was also informed that if the he had any objection he could file his objections under S. 147 (1) within 30 days from the receipt of the said notice. The appellant filed his objections on November 11, 1965. The Commissioner rejected the objections by his order dated May 26, 1966 and confirmed the valuation of the property and tax imposed by it on October 12, 1965. The appellant was informed by the Corporation by its letter dated June 1, 1966 that the amount of Rs. 764.18 as tax has been fixed with effect from April 1, 1954 on the basis of the valuation of the annual income of Rs. 10,870.20.