MUHAMMED ALIAS PAPPA Vs. DISTRICT COLLECTOR PALAKKAD

JUDGEMENT

(1.) THE controversy is with regard to the plinth area of the building based on which luxury tax is levied. On remeasuring now made under Court orders, the plinth area is found to be below the limit that attracts liability for luxury tax. However, in the measurement report, it is specifically stated that after assessment on completion of the building the appellant has made modification of the building detaching one portion from the other thereby reducing the plinth area below the limit. Alternation or part demolition of the building is permissible because it is the appellant's choice about the type of the building he should retain.

(2.) CONSIDERING the fact that the plinth area as of now is below the limit that attracts liability, this Writ Appeal is allowed vacating the demand of luxury tax for the building. However, we feel luxury tax exemption can be granted only from the year 2006-07 onwards, and for periods prior to that the appellant will have to clear the liability, if not already paid. Similarly, if the appellant makes further construction or restores the original construction increasing the plinth area, luxury tax can still be demanded as and when it is done. If excess payment is made, after adjusting luxury tax up to the year 2005-06 the excess amount collected should be refunded to the appellant within one month from the date of production of a copy of this judgment. This Writ Appeal is allowed as above.