Case Law Details
Mohammed Kabeer Vs The Secretary (Kerala High Court)
Kerala High Court held that there cannot be an automatic demand for property tax without fixing the tax payable in accordance with the procedure provided in the Act and the Rules. Accordingly, demand of property tax without assessment of the property is untenable in law.
Facts- This writ petition is filed challenging demand raised against the petitioner for property tax. It is submitted by the learned counsel for the petitioner that the petitioner had constructed a building which was assessed to property tax in the year 2000 and the petitioner was paying the property tax as demanded. However, it is submitted that, without any prior notice or intimation, notice was issued to the petitioner dated 23.12.2016 requiring the petitioner to remit an amount of Rs.1,36,731/- being the property tax required to be paid by the petitioner from 2013-2014 onwards. It is submitted that the petitioner had not been given any notice or opportunity with regard to the revision of the tax already assessed. It is contended by the learned counsel for the petitioner that the building of the petitioner was more than 15 years old and that no enhancement is required in terms of the Rules.
Conclusion- In the instant case, it is the specific case of the Panchayat that the building of the petitioner was constructed in 20002001 and had been assessed to property tax on the basis of the annual rental value of the building. Even in case Ext.R1(a) notification is issued by the Government, there cannot be an automatic demand for tax without fixing the tax payable in accordance with the procedure provided in the Act and the Rules in terms of the total plinth area of the building.
Held that demand raised without any assessment having been made is incompetent.
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