P T KRISHAMOORTHY, T RAMAMOORTHY, T SATHYAMOORTHY AND T SUNDARAMOORTHY Vs. COMMISSIONER OF MUNICIPAL ADMINISTRATION

JUDGEMENT

(1.) The petitioners are running a Chemical Small Scale Industry having its factory at Vengalakadai Street, Madurai-1. In this Writ Petition, the challenge made by the petitioners is to the demand notice issued by the respondent Corporation in revising the property tax. It was informed to the petitioners by Resolution No.338, dated 28.03.2008 and Resolution No.463, dated 27.06.2008 that the tax for half year has been increased to 150%. The tax paid by the petitioners for six months was Rs.12,071/- and, therefore, the petitioners were directed to pay the revised tax by intimation given due to the general revision made with effect from 01.04.2008. The petitioners, challenging the demand notice, filed the present Writ Petition and seek to set aside the same.

(2.) According to the petitioners, if 150% revision is made, they will be bound to pay Rs.30,178/- for half year with effect from 01.04.2008. The Writ Petition was admitted on 23.06.2009. Pending the Writ Petition, this Court granted an order of interim stay on condition that the petitioners should pay 50% of the tax demanded within four weeks. Though the application for interim direction seeking for assessment on the basis of the revised guideline in terms of the Act has been filed, no orders have been passed.

(3.) The Learned Counsel for the petitioners states that the petitioners are complying with the interim orders passed by this Court. The principal ground raised by the petitioners was that levy of 150% tax revision was illegal and contrary to Article 265 of the Constitution of India r/w Sections 120 to 123 of the Madurai City Municipal Corporation Act, 1971 . It is also stated that the respondents have failed to follow the due procedure and it is exorbitant.