MCD Vs. RAGHAV COLD STORAGE P. LTD.

JUDGEMENT

(1.) The Municipal Corporation of Delhi impugns a common order of the learned Single Judge, which has inter alia directed a remission in respect of issues which are subject matter of two of these appeals and are not really in controversy since they directed remission of a specific issue which are -the vacancy remission sought by the respondent/assessee and the remission on the issue of cost incurred by the assessee. The contentious issue requiring decision by this Court is whether the Appellate Authority acted correctly in holding that on the basis of a concession, rateable value fixed with effect from 01.08.1999 by the MCD could not have governed the assessee in the circumstances of the case. The MCD's writ petition was rejected almost summarily by the learned Single Judge.

(2.) The facts necessary to decide the case are that on 08.09.1999, the MCD issued a notice under Sec. 126(2) of the Delhi Municipal Corporation Act (hereinafter referred to as 'the Act') proposing to amend the assessment list, i.e., in respect of the assessee's rateable value of its commercial premises/plot from the existing value, to a higher one. The rateable value proposed was Rs. 67,11,600/ - with effect from 01.04.1998. The existing rateable value was Rs. 26,10,040/ - with effect from 15.10.1996 (to till the period the notice was issued, i.e., 08.03.1999). The notice, in short, proposed the revision with effect from 01.04.1998. It is not in dispute that the notice was received by the assessee within the assessment year 1998 -99 in March, 1999; objections were filed on 24.03.1999. The assessor/officer deciding the objections finally determined the rateable value at the proposed rate of Rs. 32,45,750/ - with effect from 01.08.1999.

(3.) The assessee approached this Court directly under Article 226 (W.P.(C) No. 4378/2002). That writ petition was disposed of on 24.07.2002 relegating the parties to the assistant Assessor before whom the contentions in all regards were kept open, including the question of vacancy remission which was agitated in the earlier writ petition. The Joint Assessor & Collector fixed the rateable value at Rs. 32,45,750/ - with effect from 01.08.1999 and at Rs. 11,94,840/ - per annum with effect from 22.06.2001. The Assessee was granted vacancy remission from 22.06.2001 -31.03.2003 vide assessment order dated 05.06.2003. Against this order, Assessee preferred to appeal before the appellate authority. MCD's counsel, in the course of submissions before the Appellate Authority, stated that no notice of enhancement for the year 1999 -2000 had been issued and that consequential rateable value could not have been assessed with effect from 01.08.1999 on the basis of the notices in this case, i.e., issued on 08.03.1999. The Appellate Authority, therefore, directed as follows: - -