A RAJALAKSHMI Vs. CALICUT CORPORATION

JUDGEMENT

(1.) The appellants-plaintiffs, their sister and a brother owned an item of property within the limits of the respondent corporation which proceeded to attach the properties of the plaintiff on alleged default to remit property tax. The plaintiffs sued contending that there was no demand for property tax and therefore neither the plaintiffs nor the other owners are defaulters, to be proceeded against distress action.

(2.) The courts below found that the defendants did not produce any material to show that any demand was made on the alleged defaulters. Yet the suit and the plaintiffs' first appeal were dismissed by taking the view that since the plaintiffs have paid a portion of the tax, it cannot be treated as a case where there was no demand on them.

(3.) Chapter V in Part III of the Kerala Municipal Corporations Act, 1961 (herein after referred to as the 'Act') relates to taxation. Sections 101 to 112 deal with property tax. Section 138 provides that the rules and tables embodies in Schedule II of the Act shall be read as part of chapter V. Schedule II viz. the Taxation Rules, among other things provide, in Part VI thereof, for collection of taxes. Rules 29 onwards relate to service of notice, distress etc. Rule 29(1) enjoins that a notice shall be served upon a person from whom tax is due. That notice is required to be in the statutory form. Rule 30(1) provides that if the amount due on account of any tax is not paid within 30 days from the service of notice or bill, distress action shall follow if the person from whom tax is due has not shown cause to the satisfaction of the Commissioner why it should not be paid. Sub-rules 1 and 2 of Rule 30 categorically show that they are essentially penal provisions intended to be enforced for recovery of tax. Under such circumstances, the issuance of notice as provided by the said Rules is the mandate of law. With the prescription that such notice shall be issued, it cannot be assumed that such notice has been issued unless it is shown by evidence that it has been so done.