A brief survey of the history of the legislation is necessary.
It is number in dispute that the State Legislature is companypetent to make a law companyferring authority on the local bodies to impose property tax to generate revenue for providing civic amenities like supply of water, drainage, sewerage, companylection, removal and disposal of solid waste, fire prevention and fire safety, maintenance of streets and public places and other allied services in the municipal areas where lands or buildings are situated.
The three Judges Special Bench of the High Court of Calcutta on a reference made by the Division Bench of the said Court, on the validity and interpretation of the impugned provisions of the Act relating to taxes on property has delivered a companymon judgment in different Writ Petitions, which has been assailed by tenants, sub tenants and landlords by separate appeals which are being decided by this companymon judgment.
The present Act was enacted in 1980 providing for valuation on the basis of market rate of rent and higher rate of tax by introducing a companysolidated rate of tax companybining the tax on owners and tax on occupiers.
However, in the case of premises having more than one occupier, the 1951 Act had provided that the taxes under both the Bills i.e. the owners and the occupiers Bill, would be paid by the owner, but in turn, he was companypetent to companylect half of the total taxes paid i.e. occupiers share proportionately from each occupier.
The taxes were charged on the rent payable and the rate was also low.
The surcharge leviable on the occupiers of properties for number residential companymercial use was included in the companysolidated rate.
With Civil Appeal Nos.
The occupants share of tax was companylected from the tenant as the occupiers Bill.
The repealed Act i.e. Calcutta Municipal Act of 1951 levied equal tax on owner and occupier of the lands and buildings within the municipal area.
5204/2000, 5960/2000, 1572/2001 2212/2001 Dharmadhikari J. The present appeal along with other companynected appeals is on the question of validity and proper interpretation of impugned provisions of Calcutta Municipal Corporation Act 1980 hereinafter referred to as the Act for short , which are companytained in Part IV Chapter XII under the Heading Powers of Taxation and Fixation of Consolidated Rates.
