GATEWAY HOTELS Vs. KOCHI MUNICIPAL CORPORATION

JUDGEMENT

(1.) Petitioners are all owners of buildings situated within the limits of Kochi Corporation. They have challenged the demand notices issued to them, demanding property tax in relation to the buildings owned by them for the period from 2016-17 till the date of demand notice. Reliefs are also sought for a declaration that the provisions of the Kerala Municipality Act, 1994 (for short 'the Act') do not permit enhancement of property tax with retrospective effect. Since the issues arising are similar, all these writ petitions are disposed of by this common judgment. W.P.(C) No.13370/2021 is treated as the leading case and the facts and exhibits wherever referred to, are stated from the said writ petition.

(2.) Petitioner is the owner of a room in a commercial building in Ernakulam. The property tax due for the building has already been paid till the first half of the year 2020-21. In the year 2009, provision for property tax in the Act was amended. Though rules were framed in 2011, the Municipal Council failed to fix the minimum and maximum limits of rates of the basic property tax. However, by Ext.P4, served on 24/6/2021, property tax computed as per the new rates were demanded for the period from 1/4/2016 till 31/3/2021. Petitioner has pleaded that the levy of property tax has been carried out without complying with the provisions of the Act or the Rules and further that the required deductions have not been granted while calculating the tax. Petitioner asserted that the fixation of property tax was irrational and arbitrary and hence sought to quash the demand notice issued to it and also sought for a direction to reassess the property tax after complying with the Rules.

(3.) Counter affidavits have been filed by the first respondent dtd. 13/6/2024 and 28/1/2025. According to the first respondent, pursuant to Sec. 233 of the Kerala Municipality Act, 1994 (for short 'the Act'), the Kerala Municipality (Property Tax, Service Cess and Surcharge) Rules, 2011 (hereinafter referred to as 'the Rules') came into force on 14/1/2011, and the minimum and maximum limits of rates of basic property tax were also notified by an Order of the same date. It is pleaded that the Council had, by a resolution dtd. 1/8/2011 bearing No. 63/2011 fixed the rates of basic property tax for buildings situated within the limits of Kochi Corporation. Thereafter, the Council had, by Resolution No.12 dtd. 16/11/2011, produced as Ext.R1(c), proposed to divide 74 divisions of the Corporation into prime, secondary and tertiary zones for the purpose of fixation of the annual property tax and invited objections from the public as per Ext.R1(d) publication in the newspaper. According to the respondents, the requirements of rule 4(1), (2) and rule 7 were thus complied with.