Gateway Hotels Vs Kochi Municipal Corporation (Kerala High Court)
Kerala High Court held that owners of buildings are liable to pay the annual property tax demanded in the respective demand notices at the revised rates from a period three years prior to the date of demand, after deducting the property tax already paid.
Facts- Petitioners are all owners of buildings situated within the limits of Kochi Corporation. They have challenged the demand notices issue to them, demanding property tax in relation to the buildings owned by them for the period from 2016-17 till the date of demand notice. Reliefs are also sought for a declaration that the provisions of the Kerala Municipality Act, 1994 do not permit enhancement of property tax with retrospective effect.
Conclusion- Held that the basic property tax fixation in respect of Kochi Corporation needs no interference. The owners of buildings can be made liable to pay the annual property tax demanded in the respective demand notices at the revised rates from a period three years prior to the date of demand, after deducting the property tax already paid. No amount under the respective demand notices at the revised rates can be recovered for the periods till three years prior to the date of demand and the owners of buildings in Kochi Corporation cannot be put to any prejudice for non-payment of property tax for those periods. The demand of property tax as per the respective demand notices in all these cases from 2016-17 till three years prior to the date of demand notices shall not be enforced, if not paid voluntarily.
