JAYARAJAN Vs. VADAKARA NAGARASABHA

JUDGEMENT

(1.) Liability to pay property tax to the local authority is that of the owner of the building. But, if the owner defaults, is the occupier liable

(2.) Petitioner in these three cases are tenants. The tenanted premises are put to the use of running educational institutions. Under S.235(1)(d) of the Kerala Municipality Act, 1994 (hereinafter called 'the Act'), the exemption from payment of property tax is available only to "buildings recognised by the Government or registered with the Municipality under this Act and owned and occupied by educational institutions and used only for teaching and libraries open to public". There is no dispute that in these cases, the petitioners are tenants and they are paying rent to the respondents landlords. Therefore, the only issue to be decided in these cases, is as to whose liability it is to pay the tax. Shri Parthasarathy, learned counsel appearing for the petitioners, placing reliance on S.237 and 238 of the Act, contends that the liability is of the landlord. Ss.237 and 238 read as follows:

(3.) It is clear from S.237 that subject only to the prior payment of land revenue due to the Government, in respect of property tax there is first charge on the buildings or lands or the movable property found within or upon the same and belonging to the person liable to such tax. S.238 provides that the tax shall be payable by the owner of the assessed property. However, it has to be seen that S.238 is subject to the rules made by the Government in the matter of collection of tax. S.234(4) of the Act provides that "the Government may make rules regarding the person by whom and the intervals at which the annual value of buildings, the deduction or addition in the tax made etc. is to be determined and the procedure for realisation of tax amount". R.31 of Schedule.11 onwards to the Kerala Municipalities Rules, 1960 provides for the collection of taxes. As per S.575(2)(ii) of the Kerala Municipality Act, 1994, the said rule is still in force. R.30 to 36 provide for coercive steps including distraint of the property of the person liable to pay the tax. R.36 provides that "the property of a person in default under sub-r.(1) of R.32 may be distrained wherever it may be found Within the Municipality". R.37 provides as follows: