Bombay High Court
Savedi Parisar Gharmalak Seva ... vs The State Of Mah And Ors on 23 March, 2016
Bench: S.V. Gangapurwala
1
UNREPORTED
IN THE HIGH COURT OF JUDICATURE AT
BOMBAY
BENCH AT AURANGABAD.
WRIT PETITION NO.254 OF 2013.
1. Savedi Parisar Gharmalak Seva
Sangh Society, Ahmednagar,
Reg.No.MAH/635/07/A'Nagar,
Dt.20.10.2007 through Chairman:
Nilkanth Narayan Sole,
Age 71 years, Occ.Lawyer,
R/o 22,Anand Nagar, Gulmohar
Road, Ahmednagar, Tq and
Dist.Ahmednagar.
2. Madhukar Chintaman Deshmukh,
Age 82 years, Occ.Business,
R/o Himgiri, Court Galli,
Ahmednagar.
(Deleted as per Court's order
dated 16.1.2013)
3. Puspalata Narendra Chavan,
Age 37 years, Occ.Household,
R/o Jall Road, Opp. Of
Municipal Office, Ahmedagar,
Tq and Dist Ahmednagar. ... Petitioners.
Versus
1. The State of Maharashtra,
through Secretary,
Revenue Department,
Mantralaya, Mumbai-32.
2. District Collector,
Ahmednagar, Taluka and
District Ahmednagar.
::: Uploaded on - 05/04/2016 ::: Downloaded on - 31/07/2016 10:09:34 :::
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3. Tahsildar, Ahmednagar,
Taluka and Dist.Ahmednagar.
4. Talathi, Kedgaon (Devache)
Ahmednagar, Tal and Dist
Ahmednagar. ... Respondents.
...
Mr.S.P.Brahme, advocate for the petitioners.
Mr.A.M.Phule, A.G.P for the State.
...
CORAM : S.V.GANGAPURWALA AND
A.M.BADAR,JJ.
igReserved on: 29.01.2016
Pronounced on: 23.03.2016.
JUDGMENT (Per S.V.Gangapurwala,J.)
1. Rule. Rule returnable forthwith. With
the consent of the parties, taken up for final
hearing.
2. The petitioner assails the validity of
the order dated 8.12.2011, passed by the
Collector, Ahmednagar under the provisions of the
Maharashtra Land Revenue Code.
3. Mr.Brahme, learned counsel for the
petitioners submits that initially the standard
rate of non-agricultural assessment was fixed by
the Respondent No.2 for 12 years from 1.8.1979 to
1.8.1991. The property of the petitioner was
situated within the limits of the Municipal
Council. On 30.6.2003, Municipal Corporation
came into existence. The learned counsel submits
that the non-agricultural assessment was already
fixed for a period of five (5) years i.e.
1.8.2001 to 31.7.2006. The same was a guarantee
period. Within this guarantee period of five (5)
years, non-agricultural
ig assessment can not be
changed. However, vide the impugned order the
non-agricultural assessment was increased even
for a period from 30.6.2003 to 31.7.2006.
According to the learned counsel, the same is not
permissible and against the mandate laid down in
Section 113 of the Maharashtra Land Revenue Code.
The learned counsel submits that even
retrospectively the non-agricultural assessment
can not be changed. The learned counsel relies on
the judgment of the learned Single Judge of this
Court in a case of "Shobha Prakash Deshmukh and
others Vs.State of Maharashtra and others"
reported in 2004 (5) Bom.C.R.464, so also the
judgment of the Division Bench of this Court in a
case of "State of Maharashtra and others
Vs.Nirlon Synthetic Fibres and Chemicals Ltd and
another" reported in 1992 (2) Mh.L.J.1327. The
learned counsel also relies on the doctrine of
legitimate expectation stating that for a
guarantee period, the Respondent would not change
the non-agricultural assessment. For the said
purpose, the learned counsel relies on the
judgment of the Apex Court in a case of "Sethi
Auto Service
ig Station and another Vs. Delhi
Development Authority and others" reported in
2009 (1) SCC 180.
4. Per contra, Mr.Phule, learned A.G.P
submits that there are different rates of non-
agricultural assessment prescribed for the areas
within the Municipal limits and for the areas
within the Municipal Corporation limit. Though
the earlier non-agricultural assessment was fixed
for a period 1.8.2001 to 31.7.2006, the same was
at a rate applicable to the properties situated
in Municipal limits. On 30.6.2003, the said
property became part of the limits of Municipal
Corporation and as such the rates applicable for
properties situated within limits of Municipal
Corporation was applied. The same was perfectly
legal and as per the mandate laid down U/s
113(2C) of the Maharashtra Land Revenue Code.
5. We have considered the submissions
canvassed by the learned counsel for respective
parties. Before we advert to the submission, it
would be relevant to refer to the provision
relied byig the learned counsel for both the
parties :-
"113. Power of Collector to
fix standard rate of non-agricultural
assessment :- (1) Subject to the
provisions of section 112, [the State
Government shall, or if so authorised
by the State Government by Notification
in the Official Gazette, the Collector
shall] fix the rate of non-agricultural
assessment as per square metre of land
in each block in an urban area (to be
called "the standard rate of non-
agricultural assessment") at such
percentage of the full market value of
such land as may be prescribed.
[Explanation : For the purposes of
this sub-section, the full market value
shall be estimated in the prescribed
manner on the basis of the land rates
as determined and issued in the form of
Annual Statement of rates, by the Chief
Controlling Revenue Authority under the
Banking ig Stamp (Determination of True
Market Value of Property) Rates, 1995
framed under the Bombay Stamp Act,
1958, during the period of five years
immediately preceding the year in which
the standard rate of non-agricultural
assessment is to be fixed.]
[(2) The standard rate of non-
agricultural assessment shall remain in
force for a period of "[five years]
(hereinafter referred to as "the
guaranteed period") and shall then be
liable to be revised in accordance with
the provisions of this Chapter :
[Provided that the first such
guarantee period shall commence on the
first day of August 1979 and shall
expire on the 31st day of the July
1991].
[Provided further that, the State
Government may, extend such guaranteed
period for all or any block in any
urban area so however that, such
extended period shall not be more than
five years.]
(2A) Where the standard rate of
non-agricultural assessment in any
block in any urban area has been fixed
or revised before [the lst day of
August, 1979, such standard rate shall
be deemed to be due for revision at any
time on and after the lst day of August
1979, and then such standard rate if so
revised shall be deemed to have come
into force with effect from the lst day
of August 1979 on which date the first
guaranteed period commenced and would
remain in force up to the 31st July 1991
and would then be subject to further
revision under sub-section (2B), from
time to time.]
(2B) Where the standard rate of
non-agricultural assessment is fixed or
revised for any guaranteed period, the
same shall be revised as soon as
possible after the commencement of the
next guaranteed period and such revised
rate shall be deemed to have come into
force with effect from the commencement
of such next guaranteed period.]
(2C) Notwithstanding anything
contained in sub-section (1) or the
rule made thereunder, the rates of non-
agricultural assessment for the
guaranteed period of five years
commencing from the lst August, 2001
shall not exceed, -
(a) three times the non-agricultural
assessment rate of 1991, in a municipal
corporation area and two times of such
rate in the area of the rest of the
State, for the cases which are already
assessed for non-agricultural purposes;
and
(b) six times the non-agricultural
assessment rate of 1991, in a municipal
corporation area and four times of such
rate in the area of the rest of the
State, for the cases to be assessed for
non-agricultural purposes.]
(3) The standard rate of non-
agricultural assessment fixed or
revised as aforesaid shall be published
in the Official Gazette, and in such
other manner as may be prescribed
before they are brought into force."
6. The petitioners have assailed the order
dated 8.12.2011 passed by the Collector,
Ahmednagar, fixing the standard rate of non-
agricultural assessment for a period from
30.6.2003 to 31.3.2006 basically on two counts.
(I) the petitioners have already been assessed
for the non-agricultural assessment for the year
2001-2006 vide order dated 1.1.2002. The same
being the guarantee period, the rates of non-
agricultural assessment during this period can
not be changed. (II) the order is passed on
8.12.2011 directing to pay the non-agricultural
assessment with retrospective effect.
7. Section 113 of the Code, more
particularly, sub-section (2) thereof
categorically lays down that the standard rate of
non-agricultural assessment shall remain in force
for a period of five years which is referred to
as a guarantee period and shall then be liable to
be revised in accordance with the provisions of
this Chapter. Sub-section (2B) of Section 113
further lays down that where the standard rate of
non-agricultural assessment is fixed or revised
for any guaranteed period, the same shall be
revised as soon as possible after commencement of
the next guaranteed period and such revised rate
shall be deemed to have come into force with
effect from the commencement of such next
guaranteed period. In the present matter, the
standard rate of non-agricultural assessment for
a guaranteed period from 2001 to 2006 was already
fixed vide order dated 1.1.2002. As per sub-
section 2 of Section 113 so also sub-section
(2B), the same could have been revised after the
guarantee period is over. Initially in the year
2001 at the time of fixing the standard rate of
non-agricultural assessment for a period of five
years, Ahmednagar Municipal Corporation was
Municipal Council and on 30.6.2003, it was
constituted as a Municipal Corporation. No
doubt, standard rates of non-agricultural tax is
different in Municipal Corporation area and a
Municipal Council area.
ig In the present case the
standard rate of non-agricultural assessment was
already fixed for a period from 2006 to 2007
which is termed as guaranteed period. Sub-
section (2B) of Section 113 lays down that when
the standard rate of non-agricultural assessment
is fixed for any guaranteed period, the same
shall be revised as soon as possible after the
commencement of the next guaranteed period. If
during the guaranteed period, the standard rate
of non-agricultural assessment are changed then
the very concept of guaranteed period will loose
its efficacy.
8. There is another facet to this case.
The standard rate of non-agricultural assessment
fixed for a guaranteed period of 2001 to 2006 is
sought to be changed with effect from 30.6.2003
to 2006 vide order dated 24.6.2011 with
retrospective effect. Reading Section 113 in its
entirety, it nowhere contemplates change in the
standard rate of non-agricultural assessment to
be effectuated with retrospective effect.
Reference can be had to the Judgments of this
Court in a case of "Shobha Prakash Deshmukh and
others Vs. State of Maharashtra and others" and
the case of "State of Maharashtra and others Vs.
Nirlon Synthetic Fibres and Chemicals Ltd and
another" referred supra.
9. In light of the above, the impugned
order to the extent of petitioner No.1 can not be
sustained. However, it is made clear that members
of the petitioner society who have already paid
the standard rate of non-agricultural assessment
as fixed vide the impugned order, they will not
be entitled to the benefit of the present order
and will not be entitled for any refund of the
amount. This order will enure only to the
benefit of those persons who have paid the
standard rate of non-agricultural assessment as
fixed vide order dated 1.1.2002 and has not paid
NA taxes as per order dated 8.12.2011.
10. Rule accordingly made absolute in above
terms. However, there shall be no order as to
costs.
Sd/- ig Sd/-
(A.M.BADAR,J.) (S.V.GANGAPURWALA,J.)
asp/office/wp254.13
