Hon'ble Pankaj Naqvi,J.
We have heard Shri A.D. Saunders, learned counsel for the petitioner. Learned Standing Counsel appears for the State respondents. Shri Afzal Beg appears for the Allahabad Jal Sansthan, Allahabad, which is now known as Nagar Nigam, Allahabad.
This writ petition is directed against the demand of water tax for the year 2009-10 of Rs.3,61,025/-, at 12 1/2% of the annual value of the building, assessed by the Nagar Nigam, Allahabad for the house tax at Rs.21,87,800/-.
Brief facts giving rise to this writ petition are as follows:-
"There is an institution known as Boys' High School & College, Allahabad. The institution imparts education up to Class XII and is affiliated to the ICSE.
There is a church known as 'Holy Trinity Church, Allahabad' for Christians' worship. Alongwith the church building there was open land of the church. On the campus of the church there is a hall known as 'Knox Hall'. This hall stands independently and is used for church's religious activities. Till date this hall is used for church activities as and when required.
Boys' High School & College which had been established in the year 1860 required an additional annexe as the admission of student was falling beyond its capacity. The management decided to open an annexe in the campus of Holy Trinity Church with the permission of the Church. This annexe was known as 'Holy Trinity School (Annexe of Boys' High School & College) Allahabad.
Holy Trinity Church gave permission for opening of the annexe as it was for the charitable and good cause. Accordingly Holy Trinity School, an annexe of Boys' High School & College was opened in the year 1987.
It is submitted that Holy Trinity School is only an annexe of Boys' High School & College, being part and parcel of the said school and is not a separate institution.
Nagar Nigam, Allahabad (earlier known as Nagar Mahapalika, Allahabad) imposed house tax in respect of 'Knox Hall' for a certain amount under the heading 'Knox Memorial Hall' and for the year 1999 made an assessment of Rs.386.40, which was duly paid on 12.7.1999, even though 'Knox Hall' stood exempted being church property used for religious activities. However, to avoid any controversy the amount of Rs.386.40 was paid in respect of 'Knox Hall'.
The Nagar Nigam, as it is now known, made an assessment dated 29.10.2002 in respect of Knox Memorial Hall, 16/2 Church Lane, Allahabad for Rs.24,26,403/- alleged to be for the period 1.10.1997 to 31.3.2003 taking the annual rental value to be Rs.21,37,800/- and imposed House Tax @ 22% of the annual value of Knox Hall."
Rt. Rev. A.R. Stephan, Bishop of Lucknow, Church of North India has filed a separate Writ Petition No.2996 of 2002, against the assessment of the house tax on the same property, claiming exemption under Section 177 (c) of the U.P. Municipal Corporation Act, 1959 for payment of house tax. An interim order was passed staying the levy and realisation of the house tax. By a separate judgment we have allowed the writ petition today with the findings that Section 177 (c) of the U.P. Municipal Corporation Act, 1959, as amended from time to time, provides for an exemption from general tax on the school buildings, whether they are aided by the government or not.
In this writ petition we are concerned with the payment of water tax, which is closely linked and is based on percentage of the payment of house tax, but is levied for different object and purpose namely establishment and maintenance of the water supply and sewerage services in the urban areas.
There is no exemption provided under the U.P. Water Supply and Sewerage Act, 1975 to the school buildings, whether they are aided by the State Government or not from payment of water tax. The water tax is to be paid on the basis of assessment of the annual value at the rates prescribed under Section 52 (2), which shall not be less than 6% and not more than 14%, and sewerage tax, which shall not be less than 2% and more than 4% of the assessed annual value of the premises as government may from time to time after considering the recommendation of the Nigam by notification in the gazette declare. The water tax is to be paid irrespective of the fact whether owner or occupier of the building has applied for water connection, if it is within the radius prescribed from the nearest stand post or other water works at which water is made available to the public by Jal Sansthan vide Section 55 (b) of the Act. The Rules have been framed prescribing the radius to be 100 mtrs. from the nearest ferrule.
In the present case it is submitted by Shri Arun Saunders that the school has not applied for any water connection nor does it have any water tap to which water is supplied by the Nagar Nigam. He has, however, not denied that the main water line are passing within 100 mtrs. of the school and thus restrictions on levy of tax under section 55 on the proximity with availability of water supply made by Nagar Nigam, are not applicable to the school.
We do not find any substance in the contention that since the school building is exempt from the house tax, the Nagar Nigam cannot rely on the assessment of house tax for the assessment of the water tax. Section 53 (1) (a) of the Act, provides for making assessment for educational institution at the rate of 5% of the market value of the premises. The method of assessment is different from the assessment provided to be made under the U.P. Municipal Corporation Act, 1959. Sub-section (4) of Section 53, however, provides that until assessment of annual value of the premises in any local area is made by Jal Sansthan, the annual value of the premises in local areas will be assessed by local body concerned for the purposes of house tax, which were deemed to be annual value of the premises for the purposes of the levy of water tax. Sub-section (4) of Section 53 is quoted as below:-
"53 (4). Until an assessment of the annual value of premises in any local area is made by the Jal Sansthan or any other agency specified under sub-section (2) the annual value of all premises in that local area, as assessed by the local body concerned for the purposes of house tax shall be deemed to be the annual value of the premises for the purposes of this Act as well."
The exemption from payment of house tax does not mean that the municipal authorities are prohibited from determining annual value of the building. Even if the petitioner is not liable to pay house tax in view of the exemption given under Section 177 (c), they could have filed objections to the assessment of the annual value of the building under the Municipal Corporation Act, 2004, as the same assessment can be made the basis of assessment of water tax under Section 53 (4) of the Act.
There is nothing to show that the petitoner had filed any objection to the assessment of annual value of the school building under the U.P. Municipal Corporation Act, 1959.
The rate of water tax is to be fixed between 6% to 14% and the sewerage tax between 2% to 4%, on the assessed annual value of property, as State Government may from time to time after considering the recommendation of the Nigam declared in the notification in the gazette.
We do not find that there is any pleading or any objections were filed that rate of water tax should be reduced on the school run by the petitioner, as an educational institution run by a charitable society.
It is always open to the petitoner to make a representation to the Nagar Nigam to be forwarded to the State Government, to reduce the rates of water tax and sewerage tax on the schools.
We also find that under Section 54 of the Act there is appeal provided against the assessment to the Prescribed Authority.
On the aforesaid discussion, we dismiss the writ petition with liberty to the petitoner to make objections to the Jal Sansthan, Allahabad, which is now a part of the Nagar Nigam, and if the petitoner is still aggrieved file an appeal to the Prescribed Authority. This order, however, will not be treated as any restrained order on payment of water tax, which should be paid regularly until the petitioner's representation or appeal, as the case may be, is decided.
Order Date :- 3.4.2012 SP/