Madurai Multi Functional Complex Private Limited Vs Madurai Corporation (Madras High Court)
Madras High Court held that Madurai Corporation has not right to demand property tax from Railway Land Development Authority since such levy of property tax would fall foul of Article 285(1) of the Constitution of India.
Facts-Admittedly, the land in question belongs to Railways. The only question that calls for consideration is whether the petition mentioned building is assessable to property tax under Sections 120 and 121 of the Madurai City Municipal Corporation Act, 1971. When the Madurai Corporation assessed the petition mentioned building to property tax and issued demand notice dated 03.03.2018 calling upon the petitioner to pay half-yearly tax to the tune of Rs.10,07,623/-, the appellant challenged the same. The writ petition was dismissed by the learned single Judge vide order dated 06.05.2020. Aggrieved by the same, this intra-court appeal has been filed.
Conclusion- Though the construction of the building over the railway land was made by the lessee ie., Ircon, the title over the building remains only with the Railways. It is relevant to note here such a stand has been explicitly taken by the Railways themselves. It is not our inference. Railway has asserted its title over the site as well as the building before us also. In these circumstances, the question of levying property tax by the local body does not arise.
