SADHU RAM JAIN Vs. STATE OF PUNJAB

JUDGEMENT

(1.) On the failure of the Municipal Committee Banur, to impose Property Tax, the Government of Punjab issued a notification dated 9th/12th August, 1975 purporting to "enhance" the property tax. The word 'enhance' was of course not the right word since what was being done by the Government was to 'impose' a tax. It was but a clerical error and it was soon rectified by a corrigendum. One of the contentions of the petitioner in this case is that the notification can not take effect from the date of the corrigendum and not from the date of the original notification. We see no force in this objection. The word "enhance" was not properly used. As we have said, it was a clerical error. We do not agree with the submission that the notification would have effect from the later date.

(2.) Pursuant to the notification the Municipal Committee proceeded to assess the buildings in the Municipal area. The petitioner owns three buildings. Instead of assessing each of the buildings separately and determining the rental value and the tax payable thereon, the Municipal Committee, Banur proceeded to club together all the three buildings and determined the total annual rental value of the three buildings and imposed tax on the basis of the total annual value of the three buildings so determined. This the Municipal Committee was wholly incompetent to do. The provisions of the Punjab Municipal Act do not contemplate the clubbing together of the annual value of different buildings merely because they happen to be owned by the person. The tax under the Act is no doubt payable by the owner, but it is a tax on the buildings and lands. Each building is, therefore, to be assessed separately, in the absence of any provision enabling the Municipal Committee to club them together. The order of the Municipal Committee dated 10th August, 1976 and proceedings taken pursuant thereto are quashed. The Municipal Committee will be at liberty to assess each of the building separately and impose such tax as may be lawfully leviable on each of the buildings under the notification of the Government dated 9th/12th August, 1975. There will be no order as to costs.