S. Thiruvenkadam Vs Commissioner of Municipal Administration (Madras High Court)
Summary: The Madras High Court dismissed the writ petition filed by S.Thiruvenkadam seeking quashing of the proceedings dated 30.03.2024 issued by Kannivadi Town Panchayat and refund of Rs.17,06,990 towards waiver of lease amount and refund of security deposit.
The petitioner’s father had participated in the public auction conducted by the Kannivadi Town Panchayat for the right to collect market fees in its weekly market for the lease period from 01.04.2018 to 31.03.2021. He was declared the successful bidder and paid a security deposit of Rs.3,00,000. The lease amount for 2018-2019 was Rs.30,44,444 and was increased by 5% for each subsequent year.
The petitioner contended that collection of market fees was exempt from GST pursuant to the Circular dated 23.05.2012 issued by the Commissioner of Municipal Administration. Reliance was also placed on the constitutional functions entrusted to municipalities under Article 243W and on an advance ruling concerning exemption of market fees collected by local bodies.
During the COVID-19 pandemic, the markets remained closed for a considerable period. The Government subsequently issued G.O.(D) No.298 dated 02.09.2020 and G.O.(D) No.337 dated 16.06.2023 granting waiver of lease/rental amounts for specified periods. The petitioner claimed proportionate waiver of the lease amount of Rs.14,06,990 and refund of the Rs.3,00,000 security deposit.
