KRBL LIMITED Vs. STATE OF PUNJAB

JUDGEMENT

(1.) This order shall dispose of Civil Writ Petitions No.12965, 12977, 12983, 16656, 20522 and 15294 of 2012. The petitioners in these cases assail Constitutional validity of Section 3 of Punjab (Institutional and Other Buildings) Tax Act, 2011 as according to them, it is ultra-vires Articles 13, 14 and 265 of the Constitution of India read with Entry No.49 contained in Schedule VII of its List-II in so far as the charging of tax on 'institutions' and 'buildings' on the basis of a fixed floorage area irrespective of other considerations like construction, location or the purpose for which it is used etc. is concerned. The petitioners also seek quashing of the Notification dated 2.2.2011 published on 3.2.2011, issued in purported exercise of the powers exercisable under the afore-said Act, which is allegedly discriminatory and violative of Article 14 of the Constitution. In addition, the petitioners seek to strike down the public notice dated 10.6.2011 followed by individual notices like the one dated 12.7.2011 directing them to inform the 'covered area' of their respective establishments.

(2.) For convenience, the facts are being extracted from Civil Writ Petition No.12965 of 2012.

(3.) The petitioner-Company runs an industrial unit for extraction of Basmati rice which is sold within and outside the country under the brand name of 'India Gate'. The petitioner's rice shelling plant is located at village Bhasur near Dhuri, District Sangrur and is outside the municipal limits. The plant has a built-up area of 9,00,000 square feet . Since the petitioner has been served with a notice dated 12.7.2011 (Annexure P-9) calling upon it to intimate about the 'covered area' of its establishment which is more than 500 square ft. and since the aforesaid information has been sought for imposition of 'institutional tax', that the petitioner questions the constitutionality of Section 3 of Punjab (Institutional and Other Buildings) Tax Act, 2011 (for short the '2011 Act') as well as the notification dated 2/3.2.2011 (Annexure P-7) issued in purported exercise of powers vested under Section 3 of 2011 Act coupled with the public notice dated 10.6.2011 (Annexure P-8) informing the owners/occupiers of the taxable buildings regarding levy and collection of institutional tax and the mandatory steps required to be taken by such owners/occupiers for registration of premises, measurement of area, calculation of tax and its consequential deposits in the treasury on or before 31.8.2011.