SANKARA NARAYANAN Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner in this writ petition is the owner of a marriage hall. That hall was assessed to building tax under the Kerala Panchayat Raj Act and Ext.P1 bill was issued to the petitioner directing the petitioner to pay yearly tax of Rs. 3,844/- with effect from 1.4.1996 in respect of the said hall. Subsequently, by Ext.P2 demand Notice, the petitioner was directed to show cause why the building tax in respect of the property should No. t be re-assessed under Rule 6(4) as Rs. 17,500/- with service tax (LT) of Rs. 5,000/- and Library cess of Rs. 875/-. The petitioner submitted Ext.P3 reply objecting to the proposal. Thereafter, by Ext.P4, the proposal was confirmed and the petitioner was directed to pay the balance building tax payable accordingly. Against Ext.P4, the petitioner filed an appeal before the Panchayat. By Ext.P8 judgment in O.P. No. . 21954/1997, the Panchayat was directed to consider and pass orders on Ext.P7 appeal filed by the petitioner. Pursuant thereto, Ext.P9 order was passed holding that there is No. reason to reduce the tax assessed. The petitioner filed Ext.P10 before the 2nd respondent pointing out that, while passing Ext.P9 order, the specific directions of this Court in Ext.P8 judgment had No. t been complied with. Thereafter, the petitioner was served with Ext.P11 order again confirming the earlier orders. Although the petitioner approached this Court by filing O.P. No. 7339/1998, the petitioner was relegated to the alternate remedy by way of revision before the Government. The petitioner filed Ext.P13 revision. Subsequently, the petitioner was served with Ext.P14 Notice directing the petitioner to pay an amount of Rs. 91,299/- being the arrears of building tax. Although the petitioner filed Ext.P15 petition before the Panchayat against the same, the same was rejected. In Ext.P13 revision, by Ext.P18 order, the Government directed the Panchayat to re-assess the building tax due on the petitioner's building under Rule 6(4) of the Kerala Panchayat Raj (Building Tax & Surcharge thereon) Rules, 1996. Thereupon, Ext.P19 order was passed fixing the building tax of the petitioner's building as Rs. 22,050/- along with lighting tax of Rs. 6,300/- and Library cess of Rs. 1,103/-. Against that order, the petitioner filed Ext.P20 appeal before the Deputy Director of Panchayats, which was disposed of by Ext.P21 order holding that the tax so assessed shall be given effect to only from the assessment year 1997-1998. It is under the above circumstances, the petitioner has filed this writ petition seeking the following reliefs:

(2.) I have considered the rival contentions in detail. The period of assessment involved in this case is for the five year period starting from 1.4.1996. It is No. t disputed before me that for the said period, the assessment was made by the Panchayat and Ext.P1 bill for the yearly tax of Rs. 3,844/- had already been issued to the petitioner In accordance with the said assessment for the period from 1.4.1996 to 31.3.1997. Rule 6 of the Kerala Panchayat Raj (Building Tax and Surcharge) Rules, 1996 reads thus:

(3.) Of course under Rule 7 of the Kerala Panchayat Raj (Taxation, Levy and Appeal) Rules 1996, at any time the standing committee for finance can direct the Secretary to amend the assessment books, if it appears to the standing committee that any property has been inadequately assessed or that such property has been inadvertently or improperly omitted from the assessment books or that there is any clerical or arithmetical error in the said books relating to tax. Ext.P2 is the Notice issued to the petitioner for enhancing the tax. In the same, the Panchayat has No. case that the assessment followed by Ext.P1 bill was mistakenly made. They also have No. case that any re No. vation or new addition has been made to the building. What is stated in Ext.P2 is that after the assessment was completed, the petitioner had increased the rent for the building as Rs. 5,000/- per day and therefore, it is proposed to revise the building tax payable under Rule 6(4). That situation is No. t covered by Rule 7 of the Kerala Panchayat Raj (Taxation, Levy and Appeal) Rules 1996. Neither the Panchayat Raj Act No. r the Rules framed thereunder contain any provision empowering the Panchayat to revise the building tax already assessed, in between two quinquennial revisions. On the other hand the Scheme of the Rules provides only for quinquennial revisions.