M C GEORGE Vs. MOOVATTUPUZHA MUNICIPALITY

JUDGEMENT

(1.) A question of considerable importance as far as Municipal taxation is concerned arises for consideration in this case. The question is whether a new building constructed is assessable to property tax under S.100 of the Kerala Municipalities Act, 1960, for short the Act, before it is completed and occupied. The petitioner in this Original Petition started construction of a building in Ward No. VIII of the Muvattupuzha Municipality of which the respondent is the Commissioner, in June 1970. Though initially sanction was obtained only for the ground floor and first floor, immediately after the slab concrete of the first floor the petitioner applied for sanction for the construction of the second floor also. The structure of the three floors of the building was over and the plastering and other finishing works were going on. Then the petitioner got Ext. P1 notice from the respondent assessing the building to property tax for the first half of 1971-72. The assessment was in respect of the first two floors of the building under construction. The petitioner filed Ext. P2 objection.

(2.) But the petitioner received Ext. P3 demand bill for a sum of Rs. 542/- in respect of the first and second half years 1971-72. Subsequently, the petitioner was served with Ext. P4 order revising the assessment and fixing the half yearly rate of tax at Rs. 271/-. As no reasons were stated in Ext. P4 the petitioner applied for the actual order and the petitioner on 29/03/1972 received Ext. P5 order which is the real order making the assessment in respect of the building.

(3.) The case of the petitioner is that by the time Ext. P5 was received, the time for appeal from Ext P4 to the Municipal Council had expired and hence the petitioner did not file an appeal. It is under the above circumstances that the petitioner has approached this Court with this Original Petition to quash Exts. P1, P3, P4 and P5. The main contention raised in the Original Petition is that as the building is not complete and no portion of it has been put to any use or occupation, no assessment to property tax can be made under the Act. It is also contended that assessment can be made only after completion of the construction of the entire building and notice thereof is given to the respondent Commissioner.