MARS Enterprises Vs Mumbai Municipal Corporation of Greater Mumbai (Bombay High Court)
Bombay High Court held that ‘water tax’ u/s. 141(1)(a) (i) and water benefit tax u/s. 140(1)(a)(ii) of the Mumbai Municipal Corporation Act is leviable irrespective of the fact whether water is actually consumed by the owner/occupier or not.
Facts- Upon noticing conflicting views of Division Benches of this Court on the issue of liability of owner/occupier not consuming water supplied by the Municipal Corporation to pay water tax and water benefit tax, the learned Single Judge has made a reference to the larger Bench vide order dated 28 March 2007 to consider and address relevant issues.
Conclusion- Held that the expression ‘for providing water supply’ appearing in Section 140(1)(a)(i) of the M.M.C. Act for levy of ‘water tax’ does not mean actual supply of water to owner/occupant and ‘water tax’ u/s. 141(1)(a) (i) can be levied irrespective of the fact whether water is actually consumed by the owner/occupier or not. Further, the ‘water benefit tax’ leviable u/s. 140(1)(a) (ii) of the M.M.C. Act is also leviable irrespective of the fact whether the owner/occupier actually consumes the water or not even though ‘water benefit tax’ is for meeting the expenditure for providing, operating and maintaining the water supply facility and water works.
