This writ petition has been filed praying for a writ of Certiorari, to call for the records relating to the impugned resolution, dated 31.07.2008, passed by the 5th respondent and to quash the same.
2. The petitioner is a Sangam, whose members are carrying on business in the shops, in Sholavandan Municipality, Sholavandan, Madurai District. Some of the members of the petitioner Sangam are having their own shops and some of them are doing business in rented premises. The petitioner Sangam is registered under the Tamil Nadu Societies Registration Act, 1975, with SL.No.41 of 2009. The main object of the petitioner Sangam is to promote the welfare of the members and to take up the common issues relating to them and to promote their rights.
3. It has been further stated that the property tax has been revised in all the Municipal Corporations, Municipalities, Third Grade Municipalities and Town Panchayats, with effect from 01.04.2008, as per the existing statutory provisions. A general revision of property tax has been initiated by the Government, vide G.O.(Ms)No.150, Municipal Administration and Water Supply (Elec.) Department, dated 12.11.2007. By the said Government order, the Commissioner of Municipal Administration and the Director of Town Panchayats have been directed to collect revised property tax, based on the uniform guidelines provided, vide G.O.(Ms)No.110, Municipal Administration and Water Supply (Elec.) Department, dated 23.06.2008. Accordingly, the property tax has been enhanced to 25% for residential buildings, 100% for industrial buildings and 150% for commercial buildings. Further a direction has been issued to fix the enhanced property tax on the basis of the income and the expenditure of the concerned local body. The revised property tax would be collected once in six months.
4. It has been further stated that, based on the Governments Orders, in G.O.(Ms)No.150, Municipal Administration and Water Supply (Elec.) Department, dated 12.11.2007, and G.O.(Ms)No.110 Municipal Administration and Water Supply (Elec.) Department, dated 23.06.2008, the 5th respondent had passed a resolution, dated 31.07.2008, enhancing the property tax. Based on the said resolution, the 4th respondent had issued demand notices to all the members of the petitioner Sangam. Thereafter, a representation had been made to the respondents, on 20.04.2009. However, the 4th respondent had refused to accept the representation. In such circumstances, the petitioner has preferred the present writ petition before this Court, under
Article 226 of the Constitution of India.
5. The learned counsel appearing on behalf of the petitioner had submitted that the order passed by the 5th respondent based on the Government Orders issued in G.O.(Ms)No.150 Municipal Administration and Water Supply (Elec.) Department, dated 12.11.2007, and G.O.(Ms)No.110 Municipal Administration and Water Supply (Elec.) Department, dated 23.06.2008, is arbitrary, illegal and void. The said order is contrary to the principles of natural justice. He had also submitted that the respondents 4 and 5 ought not to have enhanced the property tax in an arbitrary manner, without any reasonable basis. The relevant factors had not been taken into account before the property tax had been enhanced. Therefore, the impugned resolution of the 5th respondent, dated 31.07.2008, is bad in law, and therefore, it is liable to be set aside.
6. In the counter affidavit filed on behalf of the respondents, it has been stated that, as per G.O.(Ms) No.150, Municipal Administration and Water Supply (Elec.) Department, dated 12.11.2007, quinquennial revision of property tax would be made, once in five years. The last revision of property tax had been effected, on 01.10.1998. Therefore, the next revision ought to have been done, on 01.10.2003. However, no revision of property tax was done, on 01.10.2003. Thereafter, the revision of property tax was effected, on 01.04.2008. The ceiling of property tax is fixed at 25% for residential buildings, 100% for industrial buildings and 150% for commercial buildings. Since, no revision was effected, on 01.10.2003, the revision made, with effect from 01.04.2008, had to be higher. It had also been stated that the revision of property tax is only based on the guidelines issued by the Government, by the relevant Government orders and the guidelines issued by the Commissioner of Town Panchayats, dated 12.02.2008. Since, the property tax has been enhanced only as provided under law, it cannot be said to be arbitrary or illegal.
7. In view of the submissions made by the learned counsels appearing on behalf of the petitioner, as well as the respondents and on a perusal of the records available, this Court is of the considered view that the petitioner has not shown sufficient cause or reason to interfere with the impugned resolution of the 5th respondent, dated 31.07.2008. The petitioner has not shown any reason to state that the enhancement of property tax is beyond the permissible limits. Further, it has not been shown that the increase in property tax is contrary to G.O.(Ms)No.150 Municipal Administration and Water Supply (Elec.) Department, dated 12.11.2007, and G.O.(Ms)No.110 Municipal Administration and Water Supply (Elec.) Department, dated 23.06.2008, and the guidelines issued by the Commissioner of Town Panchayats. Even though it has been stated, during the course of the arguments, that the increase in property tax is beyond the permissible ceiling limits, the petitioner has not been in a position to substantiate his claim. However, this Court, while dealing with the same issue, had passed an order, on 12.11.2009, in W.P.(MD).No.8989 of 2009, filed by Ponnamaravathi Trader's Association, dismissing the writ petition. Paragraph 14 of the order reads as follows:
14. The petitioners have not been in a position to show that the resolution passed by the Panchayat Council of Ponnamaravathi Town Panchayat, approving and accepting the guidelines for fixing the percentage of taxes to be levied under G.O.(Ms) No.110 Municipal Administration and Watersupply (Elec.) Department, dated 23.06.2008, is arbitrary and invalid. When most of the panchayats in Pudukottai and other Districts had accepted the increased taxes to be reasonable, no proper reasons have been shown by the petitioners to challenge the resolutions passed by the panchayat council of Ponnamaravathi Town Panchayat fixing higher rates for payment of taxes. Fixation of higher rates of taxes had been justified in the various local bodies due to the escalation of costs in their activities of providing the various amenities for the welfare of the people of the respective areas. It has also been seen that merely 50% of the persons assessed for the payment of the increased taxes have already complied with the demands made by the Ponnamaravathi Town Panchayat."
8. In such circumstances, the present writ petition is liable to be dismissed, as devoid of merits. Hence, it is dismissed. No costs. Consequently, connected miscellaneous petitions are also closed.
cs To
1.The Secretary to Government, Municipal Administration and Water Supply Department, Chennai - 9.
2.The Commissioner of Municipal Administration, Chennai.
3.The Joint Director of Municipality, Office of the Madurai Collector, Madurai District, Madurai - 20.
4.The Executive Officer, Sholavandhan Municipality, Sholavandhan, Madurai District.
5.The President, Sholavandhan Municipality, Sholavandhan, Madurai District.