UNION OF INDIA UOI Vs. MUNICIPAL BOARD

JUDGEMENT

(1.) This is a reference made by the Additional District Magistrate (Judicial) of Lucknow under Section 162, U. P. Municipalities Act.

(2.) The Union Government has quite a number of buildings which are in the use of the Northern Railway in the City of Lucknow and the Municipal Board of Lucknow used to levy house and water taxes on these buildings. The last revision of assessment was made in the year 1948 and it appears that taxes were paid in respect of these buildings till 31-3-1953. A fresh assessment became due in 1953, and it is in connection with this assessment that a dispute arose between the Municipal Board and the Railway Authorities managing the property sought to be assessed, about the liability for payment of tax.

(3.) A brief history of the previous revision of assessment made in 1948 may be useful in appreciating the points in dispute. On 1-10-1947, the Municipal Board revised the basis of the assessment of taxes and adopted a system popularly known as slab system of levy of taxes. This was opposed by the Railway Authorities, as it resulted in an increase in the taxes and a reference was made to the District Judge of Lucknow, Dr. L. N, Misra, under Section 131(2), Railways Act, read with Section 3 (2) of the Railways (Local Authorities Taxation) Act (XXV of 1941) and a notification dated 11-1-1944. Dr. L.N. Misra, District Judge of Lucknow, gave his award and approved the basis of taxation under the slab system as proposed by the Municipal Board. No grievance was made thereafter in respect of the payment of taxes which were so assessed under the slab system till 31-3-1953. In the revision of the assessment sought to be made in 1953 which was to be applicable with effect from 1-4-1953, some objection was raised on behalf of the Railway Authorities in charge of the property of the Union. These objections were, however, not accepted by the Assessing Officer and an assessment was made. An appeal was then made to the Additional District Magistrate (Judicial) against the order of the Assessing Officer. When the appeal came up for hearing before him, he felt some doubt about certain points and the following points were then referred to this Court for decision.