M/S. DBS CORPORATE SERVICES PVT. LTD Vs. COMMISSIONER THE CORPORATION OF CHENNAI RIPON BUILDING AND OTHERS

JUDGEMENT

(1.) The petitioner has filed this writ petition challenging the notice issued by the Corporation of Chennai and the Chennai Metropolitan Water Supply and Sewerage Board demanding arrears of property tax for the period 1st half year 2016-17 as well as water and sewerage tax and directing the petitioner to pay the same within three days from the date of receipt of the impugned notice failing which the petitioner was informed that an action would be initiated under the provisions of the Chennai City Municipal Corporation Act, 1919 and the Chennai Metropolitan Water Supply and Sewerage Act, 1978.

(2.) The petitioner's case is that the impugned demand is a result of retrospective revision of Property Tax with effect from 2009-10 without any opportunity to the petitioner and without even serving any revised Assessment Orders. Therefore, it is the contention of the petitioner that if there is an enhancement of Property Tax, then the procedure contemplated under Section 98-A Chennai City Municipal Corporation Act, 1919 has to be followed and the assessee is entitled to reasonable opportunity to submit their objections. Therefore, it is submitted that without affording an opportunity to object to the refixation of the annual value of the building, the respondents were not justified in unilaterally refixing the Property Tax.

(3.) The writ petitions were entertained and the interim orders were granted. From the material papers placed before this Court it is seen that the petitioner was not afforded an opportunity before the Corporation of Chennai revised the Property Tax. Therefore, the respondent could not have issued the impugned notice which appears to be a step ahead of distraint proceedings. Thus, the respondent before revising the Property Tax, should have afforded an opportunity to the petitioner and thereafter, proceeded further in accordance with law. The same reasoning equally apply to the demand raised by Chennai Metropolitan Water Supply and Sewerage Board as the demand is pursuant to revised Property Tax demand by the Corporation of Chennai. Thus, demand raised by Chennai Metropolitan Water Supply and Sewerage Board is also in violation of principles of natural justice. However, the learned counsel for the petitioner submitted that the pre-revised property tax demanded by the Corporation of Chennai as well as the Water and Sewerage tax has been remitted by the petitioner without default. The respondents are unable to contravert the said submission nor any record is placed before this Court to show that the petitioner is a defaulter of even the admitted tax liability.