PEDAPLH RATE PAYERS ASSN Vs. P MUNICIPALITY

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution praying for the issue of a writ of mandamus interdicting the Peddapalli Town Municipality from collecting property tax at enbanced rates as per notification dated 28th September, 1961. The petitioners are rate payers and residents of Peddapalli. the respondent Municipality proposed enhanced property tax, which it could do following the procedure prescribed under section 119 of the Hyderabad District Municipalities Aet (XVIII of 1956), hereinafter to be referred to as the Act The Special Officer of the Municipality published a notice under section119 (2)of the Act dated 17th August, 1961. Therefore he issued the impugned notification dated 28th September 1961. The main ground of objection to this notification is that it does not conform to section 119(5) of the Act and therefore the levy according to that notification was bad. The Municipality by its President filed a counter stating that was not necessary to repeat what was stated in the notice issued under section. 119 (2) and so the notification could not be objected to. The short question for our decision is if the notification dated 28th Sep. tember, 1961 is in compliance with the express provisions of section 119 (5) of the Act. Before we address ourselves to this question, we refer to the relevant provisions of the Hyderabad District Municipalities Act. Section 96 deals with Municipal taxes and the imposition thereof among which are listed taxes on lands and buildings. Section 119(1) states that no tax shall be imposed under section 96 unless the Committee shall, at a special meeting convened for that purpose have passed a resolution proposing the imposition of such tax The proviso dealing with pilgrim tax is not relevant. Sectioon 119 (2) says that when such a resoultion has been passed the committee shall publish, as prescribed, a notice defining the class or persons or discription of property proposed to be taxed, the rate of tax to be imposed and the. system of assessment to be adopted. Section 119 (3) provides for any inhabitant of the Municipality objecting to the proposed tax submitting his objections in writing to the Comittee Within thirty days of the publication of the notices Under section 119 (4), the Committee shall take the proposal and all objections received there to into consideration at a special meeting and shall determine by resolution to levy the tax. Such resolution shall specify the rate at which and the date from which such tax shall be levied. If the Committee decides to modify the proposals so as to affect their substance it shall publish them again in the manner specified in sub-section (2). Section 119 (5) contemplates that when the Cpmmittee shall have determined to levy any tax it shall publish a notification in the Official Gazette and in such other manner as mav be prescribed specifying the rate at which and the date from which such tax shall be levied. Section 119 (6) enacts a special rule of evidence that a notification of the imposition of a tax under this section shall be conclusive evidence that the tax has been imposed in accordance with the provisions of this Act and the rules made there under. Reading the provisions, it is seen that section 96 gives the power of imposition of taxes and section 119 prescribes the procedure in imposing taxes. The procedure contemplates in the first instance a resolution by the committee proposing the imposition of the tax and the publication of the notice thereof defining the class or persons or description of property the rate of tax and the system of assessment to be adopted There is a period of 30 days fixed for objectars to put their written objections to the committee There shall be then a resoultion by the commute after consideration of the objections. Such resolution shall specify the rate at which and the date from which the tax shall be- levied. On such determination by a resolution, there shall be a notification under section 119 ( ) which notification shall be conclusive vidence . the Legislature has advisedly prescribed a self-contained procedure for the imposition of taxes which has to be complied with. We now peruse the notice issued under section 119 (2) which is as under: The Andhra Pradesh Gazette Published by authority No. 32 Hyderabad. Thursday August 17, 1961 page No. 926. . Part II - Miscellaneous Notifications of interest to public. Levy, of (General Tax) property tax on Buildings, vacant lands and agricultural lands within the municipal limits of town Municipality Peddapalli -Karim Nagar District. In exercise of the powers conferred by section 96 of Hyderabad District Municipalities Act, (XVII of 1956) it is proposed to impose within the limits of the Town Municipalty, Peddapalli, with effect from 1st April, 1962, the tax at the rate specified below: Notice for the imposi tion of the said tax is hereby given as required by sub-section (2) of section 119 of the said Act ,for the information of the residents within the limits of the Town Municipality, Peddappalli likely to be affected thereby. The proposal for the imposition of the said tax will be taken into consideration after one month from the date of publication of the notification in the Official Gazette. Any objection or suggestions from any person residing within the limits of the Town Municipality, Peddapalli with respect to imposition of the said Tax which may be addressed to the President (Special Officer) of the said comunitee before the specified period will be considered by the Town Committee or the Special Officer. Tax proposed to be levied and rate. General Tax (Property Tax) on buildings, vacant lands and agricultural lands121/2 per cent of the annual rateable value. Syed Naimathullah, Peddapalli (Special Officer,) 5th August , 1961. President, Town Municipality." THIS is followed by the jmpugned notification which is in the regional language of Telugu arid translated as under:

(2.) IT is seen that there is reference in the later notification No 168 dated 5th October, 1950 under the the Assessment of Property Tax Rules, 1950. Those rules were made in exercise of the po vers conferred by section 105 of the Hyderabad Municipal and Town Committee's A in, 1352 Fasli. Rule 8 says that the Committee shall,before or at the time of commencing assessment.cause to be prepared an assessment register in which certain entries listed therein shall be made. Rule 9 says that after making entries in the assessment register the Committee shall by notification in the Gazette and by advertisements notify to the public that the register mentioned in rule 8 may be inspected at the appointed place and time within a period of three months. On a scrutiny of the impugned notification, we have no doubt that this purports to be a notification contemplated by rule 9 of these rules. IT is difficult to accept this as a notification under section 119 (5) of the Act Manifeslty therefore the enhaced tax cannot be levied unless and until there is a notification under section 119 (5) which obviously has not been complied with. A levy under the impugned notification would not be according to law and a writ will issue accordingly restraining the collection of tax under the impugned notification. This will not preclude the authorities from issuing a notification in compliance with section 119 (5) and then levying the tax. The petition is allowed but there will be no order as to costst M. S. K. -"* Petition allowed.