Case Law Details
A. S. Narayanasamy Vs Commissioner (Madras High Court)
In the case A.S. Narayanasamy Vs Commissioner, the Madras High Court examined a property tax demand issued by the municipal authorities. The petitioner challenged the demand of ₹1,69,376, arguing that it violated Tamil Nadu Government Order G.O.M.S.No.194, dated March 30, 2022. As per the order, the property tax for commercial properties could only be doubled using an “increasing factor-2.” However, the demand applied a factor of 4, inflating the payable tax significantly. Additionally, the petitioner contended that the order was issued without prior notice or an opportunity for personal hearing, thereby violating principles of natural justice.
The Court reviewed the submissions and found merit in the petitioner’s arguments. It observed that the demand notice failed to align with the government’s prescribed method of calculation and was issued in contravention of legal procedures. Acknowledging the petitioner’s willingness to pay the revised amount of ₹87,788 based on the correct factor, the Court set aside the impugned order. The matter was remanded to the authorities for reconsideration, with directions to pass a fresh order within eight weeks. Until then, the petitioner is permitted to pay the recalculated tax amount, including any arrears. The writ petition was disposed of without costs.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Challenge in this Writ Petition is to the impugned order dated 23.01.2023 passed by the first respondent demanding payment of Rs.1,69,376/- as property tax.
2. The learned counsel appearing for the petitioner submitted that in the present case, initially, the petitioner was paying a sum of Rs.43,897/- as property tax every year and in terms of the notification issued by the Tamil Nadu Government dated 30.03.2022, in the event of commercial properties, the respondents had increased the tax by applying the increasing factor – 2. In the present case, if the increasing factor-2 is applied, the amount would comes around Rs.43,894/- x 2 = Rs.87,788/-. Therefore, without application of mind contrary to the provisions of the Government Order, the present impugned order came to be passed. Further, he would submit that that before the said demand notice, the respondent not at all issued any notice and provided opportunity to the petitioner. Therefore, present order came to be passed is in violation of law and principles of natural justice and the same is liable to be set aside.
3. Considering the submission made by the petitioner in the present case, it is crystal clear that before issuing the demand notice by virtue of the impugned order, no notice was issued to the petitioner to present the case in the form of writing and also no opportunity of personal hearing was provided. That apart, the Government of Tamil Nadu passed G.O.M.S.No.194 on 30.03.2024.
4. A perusal of the Government Order, it is crystal clear, in the event of any increase in the property tax, the increasing factor would be 2 and the said aspect has not been applied to the present case. It appears that the increasing factor which was applied as 4 is directly contrary to the said Government Order. However, at this juncture, the counsel for the petitioner fairly submit that he is ready to pay the increasing factor-2, which would comes around to Rs.87,788/- as on date.
5. In view of the same, it is crystal clear that the impugned order came to be passed is in violation of law and principles of natural justice without considering the G.O.M.S.No. 194 dated 30.03.2022 and therefore, the said order is liable to be set aside accordingly, the same is set aside and remanded back for reconsideration to pass fresh orders within a period of eight weeks from the date of receipt of a copy of this order. Since the petitioner is paying Rs.43,894/-, he is permitted to pay by applying the increasing factor -2 i.e., a sum of Rs.87,788/- per term which includes arrears, if any in past until the disposal of the present case by the authorities concerned.
6. This Writ Petition is disposed of with the above directions. No costs. Consequently, the connected miscellaneous petitions are closed.
