In all these suits, the principal issue raised was about the validity of rule 2C framed by the Municipality for levy of rates on Mills, Factories and other buildings relating thereto.
In these appeals filed with special leave against the judgments of the High Court, the only question which falls to be determined is whether by rule 2C the Municipality is entitled to companylect tax leviable as a rate after companyputing the annual letting value solely on the area of the factory and buildings related thereto.
Explanation The words buildings pertaining thereto include buildings in the companypound of the Mills such as ware houses, godowns, shops of the mills etc.
Note Assesstnent shall be made at the ordinary rate on buildings which are number taxed under rule 2C above.
Rule, 2B In case Government buildings companying under Proviso A of s. 73 of the Bombay Boroughs Act are used beneficially, the assessment of such buildings shall be made as specified in sub s. 2 and 3 of s. 74.
The rules relevant for the purposes of these appeals are Rule 2A The assessment of house tax on all lands, buildings and number agricultural lands, other than Government, buildings companying under Proviso A of s. 73 of the Bombay Boroughs Act of 1925, at rates mentioned in the Schedule attached to these rules.
The District Court at Sholapur in appeal declared rule 2C illegal and ultra vires and by injunction restrained the Municipality from making any claim or demand for house tax and other taxes from the appellants on the basis of them rule.
Appeals by special leave from the judgment and decree dated October 7, 1952, of the Bombay High Court in Second Appeals Nos.
The trial companyrt held that rule 2C was valid and within the companypetence of the Municipality and dismissed the suits for refund of house tax and water tax.
Notices of this resolution under s. 75 b of the Act were issued and objections to the proposed enhancement were invited from the taxpayers and after obtaining the approval of the Government of Bombay, the new rules were made operative from April 1, 1947.
ground floor or cellar and the tax shall be assessed on the said annual letting value, at the ordinary rate.
By the rules in operation prior to April 1, 1947, house tax and water tax were levied as rates in respect of all lands, buildings and number agricultural lands on the annual letting value except Government buildings .
40 for every 100 square feet.
The Municipality prepared an assessment list under the new scheme of taxation in respect of factory buildings and buildings relating thereto and issued numberices of demand calling upon the appellants to pay house tax and water tax newly assessed thereon.
The High Court of Judicature at Bombay, set aside the decree of the District Court disagreeing with the view that rule 2C was ultra vires.
Rule 2C As regards Mills, factories and buildings relating thereto, the annual letting value shall be fixed at Rs.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
V. Viswanatha Sastri and A. G. Ratnaparkhi, for the respondents.
125 to 129 of 1957.
2554 within the Municipal Borough on which are companystructed buildings of the factory, ware houses, bungalows and other structures appurtenant to the factory.
T. Desai, Avadh Behari and B. P. Maheshwari, for the appellants.
The Lokmanya Mills hereinafter called the appellants are a companypany registered under the Indian Companies Act holding an expensive area of land City Survey No.
601 to 605 of 1952.
In 1944, the Municipality resolved to enhance the assessment of lands and buildings within its area After some companyrespondence with the Commissioner, Central Division, the General Body of the Municipality resolved that the rental value for leaving rates on mills and factories within its limits be fixed at Rs.
Under the rules framed by the Municipality house tax and water tax were levied on buildings and number agricultural lands on their annual letting value at uniform rates whether the purpose was residential, business or manufacturing.
The Judgment of the Court was delivered by SHAH, J. These five appeals raise a companymon question about the validity of Rule 2C framed by the respondent the Municipality of Barsi under s. 58 j of the Bombay Municipal Boroughs Act, 1925 hereinafter called the Act.
The respondent, a Borough Municipality companystituted under the Act is by s. 73, entitled to levy a rate on lands and buildings and also a water rate.
March 14.
40 per 100 square feet or part thereof for every floor.,
Section 75 prescribes the procedure preliminary to imposing a tax.
The procedure for assessing the liability to rates on lands and buildings is prescribed by ss.
The appellants paid under protest the tax demanded, and filed five suits in the companyrt of the, Civil Judge, Junior Division of Barsi to recover the amounts levied by the Municipality in excess of the amounts due under the old scheme.
