Saila Ghosh Vs State of West Bengal & Ors. (Calcutta High Court)
The Calcutta High Court’s judgment in the case of Saila Ghosh vs. State of West Bengal & Ors. addresses a dispute over the payment of property tax arrears and the subsequent interest imposed by the Bally Municipality. The appellant, Saila Ghosh, challenged the notice of demand issued by the municipality for the years 2011-2012, 2012-2013, and 2013-2014, along with current dues till the fourth quarter of 2014-2015, which included surcharge and interest.
Background: Saila Ghosh is one of the owners of premises No.1, Kailash Chandra Singha Lane, Bally, Howrah. The property tax for this premise was initially set at Rs. 165 per quarter in 1998. In 2004-2005, this amount was increased to Rs. 1115 per quarter, which the appellant claimed to have paid regularly. Despite this, the municipality issued a demand notice in 2014 for arrear taxes and current dues, including surcharge and interest. Ghosh sought permission to pay the arrears in installments, which the municipality denied, prompting her to approach the court.
Proceedings: The learned Single Judge of the Calcutta High Court initially upheld the demand notice but granted a waiver of 50% on the interest demanded. Both Ghosh and the municipality contested this decision. Ghosh argued that no bills were issued for the enhanced property tax during the disputed period (2011-2014), thus making the interest demand invalid. She expressed her willingness to pay the arrears in installments. Conversely, the municipality contended that the appellant had not raised this issue previously and that the municipality had no scheme to waive interest on property taxes.
