N S MANKALE Vs. TOWN MUNICIPAL COUNCIL SAGAR

JUDGEMENT

(1.) These 9 petitions raise common questions on municipal taxation under the Karnataka Municipalities Act, 1964 (22 of 1964) (hereinafter referred to as the Act).

(2.) The petitioners are the owners of certain buildings situate within the municipal limits of Sagar Town. They challenge the levy of Municipal Taxes, sought to be recovered by the Sagar Town Municipal Council which I shall refer to as 'the Council'. The Council has been levying building tax, lighting tax, education cess, health cess and library cess. The rate of building tax was formerly at 6 per cent on the annual rateable value of the building. The other taxes 'were levied at varied rates on the annual rateable value of the buildings. The Council by its resolution resolved to enhance the rate of taxation and after following the procedure provided by Ss.95, 96 and 97 of the Act a final notification dt.10-7-1969, was published bringing into force the new rates of taxation with effect from 1-10-69. The building tax was enhanced to 8 per cent on the annual rateable value of the buildings. There, was also general increase in the lighting tax, water tax general sanitary cess and library cess. The petitioners did not pay the enhanced tax from the year 1969 onwards In 1972, a notice under Section 142 was issued to the petitioners by the Chief Officer of the Council demanding both the arrears of tax and also the taxes for the first part of the year 1972-73. The notices issued to all these petitiqners are more or less similar. It may be sufficient, if I set out the notice issued to the petitioners in WP 3108 1972. It reads :

(3.) The primary contention urged by Sri T. S. Ramachandra, learned Counsel for the petiticners is that the procedure adopted by the Council for levying and collecting higher rates of taxation was illegal and therefore there was no liability on the part of the petitioners to pay the same.