KALAVAD VANIK SANGH Vs. KALAVAD NAGAR PANCHAYAT

JUDGEMENT

(1.) Petitioners who are residents of Kalavad town in Jamnagar district have filed this petition challenging the action of the respondent Kalavad Nagar Panchayat (hereinafter referred to as the respondent Panchayat) in demanding and collecting tax on buildings and lands (housetax) from them from April 1 197 5/03/1979

(2.) Facts leading this petition briefly stated are as under. By a resolution dated 12/10/1973 the respondent Panchayat decided to impose tax on buildings and lands with effect from April 1 1973 It is not in dispute that necessary formalities of publication etc. as required by the Gujarat Gram and Nagar Panchayats Taxes and Fees Rules 1964 (hereinafter referred to as the Rules) were complied with. Objections received from the inhabitants of Kalavad town in response to the public notice were considered by the respondent Panchayat and there after a resolution was passed by it to impose tax at the rate of 6per cent per annum on the annual letting value of the buildings and lands with effect from 1/04/1974 Final notice 24/03/1974 along with rules was duly published. Thereafter the respondent panchayat by its resolution dated 25/05/1974 decided to levy tax on buildings and lands at the rate of 3 per cent of the annual letting value of the buildings and lands instead of 6 per cent as earlier resolved. By a resolution dated 7/10/1975 the respondent Panchayat further decided to impose the said tax with effect from 1/04/1975 instead of from 1/04/1974 as stated earlier. It is noti n dispute that after this decision to levy tax at 3 per cent of the annual letting value of the buildings and lands with effect from 1/04/1975 was taken necessary formalities as required by the Rules were complied with. A notice dated 15/02/1975 imposing tax as stated above along with the rules was also duly published.

(3.) By a further resolution dated 2/05/1979 on which the petitioners mainly rely the respondent Panchayat unanimously resolved to impose tax on buildings and lands with effect from 1/04/1979 instead of 1/04/1975 The ground for changing the date from 1/04/1975 to 1/04/1979 given in the resolution was that there was delay in preparation of the assessment list. However when the respondent Panchayat issued bills for recovery of the tax on buildings and lands demand for tax has raised from 1/04/1975 A copy of one of such bills issued by the respondent Panchayat on 12/02/1980 is at Annexure B to the petition. wherein Rs. 720.00 are demanded for the period from April 1 197 5/03/1979 in respect of the property bearing No. 2650 of one Jashwantrai D. Ravani. According to the petitioners similar bills were issued to all the residents of Kalavad town who were liable to pay tax on buildings and lands under the resolution referred to above. Petitioners contend that the demand for the tax for the period from April 1 197 5/03/1979 is illegal.