Bombay High Court
Supriya Rajesh Nair vs Municipal Corporation Of Greater ... on 30 July, 2021
Bench: S.J. Kathawalla, R. I. Chagla
NITIN
DINKAR
JAGTAP
PA - Nitin Jagtap 1 / 37 WP-2-2021-F.doc
Digitally signed by
NITIN DINKAR
JAGTAP
Date: 2021.07.31
17:36:13 +0530
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. 2 OF 2021
Supriya Rajesh Nair, )
Age : 48 years, Occ : Psychologist, )
Residing at Flat No. 402, Building No.7A, )
Versova Fortune 59, Cooperative Housing Society Limited, )
4th Floor, Near Lokhandwala Circle, New Mhada Complex, )
Versova, Andheri (East), Mumbai - 400 053 )... Petitioner
Versus
1. Municipal Corporation of Greater Mumbai, )
Through its Commissioner, Mahapalika Bhavan, )
Opp. CSMT, Mumbai - 400 001. )
2.Assistant Assessor and Collector, )
K/West Ward, Municipal Office Building, )
Paliram Road, Off. S.V. Road, Opp. Andheri Station, )
Andheri (W), Mumbai - 400 058. )
3. State of Maharashtra, )
Through the Secretary, Urban Development Department, )
Mantralaya, Mumbai )... Respondents
Mr. Rajesh Datar alongwith Mr. Jayesh Desai and Mr. Akshay Kandarkar i/b M/s.
Desai & Desai Associates for the Petitioner
Mr. V. Sreedharan, Senior Advocate alongwith Ms. Pallavi Thakar i/b Ms. Aruna
Savla for MCGM
Mr. Prasad Kulkarni, Ward Inspector, Assessment & Collection Department, K/W
Ward, present.
PA - Nitin Jagtap 2 / 37 WP-2-2021-F.doc
CORAM : S.J.KATHAWALLA, &
RIYAZ I. CHAGLA, JJ.
RESERVED ON : 8TH JANUARY, 2021 / 19TH APRIL, 2021
PRONOUNCED ON : 30TH JULY, 2021
JUDGMENT ( PER S.J. KATHAWALLA, J.) :
INDEX
I. OVERVIEW OF CHALLENGE.....................................................03
II. FACTS...................................................................................06
III. ISSUE WHICH ARISE FOR CONSIDERATION...............................13
IV. PROPERTY TAX LEVIED BY MCGM............................................14
V. LEGISLATIVE PROVISIONS GOVERNING THE LEVY AND
COLLECTION OF THE PROPERTY TAX.......................................15
A. CONSTITUTION OF INDIA........................................................15
B. MUMBAI MUNICIPAL CORPORATION ACT, 1888...........................17
C. MAHARASHTRA (URBAN AREA) PRESERVATION OF TREES
ACT, 1975.................................................................................18
D. MAHARASHTRA EDUCATION & EMPLOYMENT GUARANTEE CESS
ACT, 1962................................................................................19
E. MAHARASHTRA HOUSING & AREA DEVELOPMENT ACT, 1976......20
F. EXEMPTION FROM LEVY & COLLECTION OF PROPERTY TAX.......22
PA - Nitin Jagtap 3 / 37 WP-2-2021-F.doc
VI. ORDER DATED 8TH JANUARY, 2021............................................22
VII. PETITIONER'S SUBMISSIONS...................................................23
VIII. RESPONDENTS' SUBMISSIONS.................................................24
IX. ANALYSIS OF THE ISSUES THAT ARISE FOR CONSIDERATION IN
THIS PETITION AND THE COURT'S FINDINGS...................................26
ISSUE NO. (I) : WHETHER THE PETITIONER, BEING A WIDOW OF AN EX-
SERVICEMAN OR WAR WIDOW, IS ENTITLED TO EXEMPTION FROM
PAYMENT OF ALL FORMS OF PROPERTY TAXES UNDER, INTERALIA,
THE MMC ACT PURSUANT TO THE STATE GOVERNMENT RESOLUTION
DATED 5TH APRIL, 2016 READ WITH THE CORRIGENDUM DATED 7TH
APRIL, 2016....................................................................................26
ISSUE NO. (II) : WHETHER THE LETTER DATED 7TH JANUARY, 2021
ADDRESSED BY THE DEPUTY SECRETARY, UDD, GOVERNMENT OF
MAHARASHTRA TO THE ADDITIONAL GOVERNMENT PLEADER CAN
HAVE ANY BEARING ON THE INTERPRETATION AND APPLICATION OF
THE GR AND IF SO, TO WHAT EFFECT..............................................29
ISSUE NO. (III) : WHETHER THE STATE GOVERNMENT / MCGM HAS THE
POWER TO EXEMPT THE LEVY OF PROPERTY TAX UNDER THE MMC
ACT...............................................................................................31
ISSUE NO. (IV) : IF ISSUE NO. (I) IS ANSWERED IN THE AFFIRMATIVE,
WHETHER THE STANDING COMMITTEE RESOLUTION DATED 29TH
JUNE, 2017 CAN HAVE THE EFFECT OF RESTRICTING THE EXEMPTION
UNDER THE GR ONLY TO 'GENERAL TAXES' AS ONE COMPONENT OF
PROPERTY TAXES............................................................................35
X. ORDER...........................................................................37
PA - Nitin Jagtap 4 / 37 WP-2-2021-F.doc
I. CHALLENGE IN BRIEF :
1. The present Petition has been filed seeking, inter alia, quashing and
setting aside of bills dated 4th June, 2016 and 11th September, 2019 issued by the
Municipal Corporation of Greater Mumbai ("MCGM") levying property tax of Rs.
80,241/- for the period 1 st April, 2016 to 31st March, 2020 ("Impugned Property Tax
Bills"). The property tax is levied in respect of a residential flat at Versova, Andheri
(W), Mumbai - 400053 ("the said Flat").
2. The reliefs sought in the Petition are reproduced below:
"25. (a) That this Hon'ble Court be pleased to [issue a] writ of
Mandamus or a writ of Certiorari or writ in the nature of
Mandamus or Certiorari or any other appropriate Writ, order or
direction under Article 226 of the Constitution of India
i. thereby directing Respondent No. 1 and 2 to extend the
benefit of Government Decision dated 5th April 2016 read with
Corrigendum dated 7th April, 2016 to the Petitioner in its
entirety
ii. thereby quashing and setting aside the bills for property
taxes dated 4th June, 2016 and 11 th September, 2019 raised upon
Petitioner by Respondent No. 2 in respect of the aforesaid
property of the Petitioner
iii. quashing and setting aside Circular dated 29th September
2017 issued by Respondent No. 2 regarding grant of exemption
from payment of general tax out of the property tax as well as
order / decision dated 29th June 2017 issued / taken by Standing
Committee of Respondent No. 1 corporation thereby granting
conditional approval for exemption from payment of general tax
from out of the property tax as well as subsequent order dated 6 th
June 2019 bearing No. SKVS/3535/2016/2017 issued by
PA - Nitin Jagtap 5 / 37 WP-2-2021-F.doc
Respondent No. 2 in pursuance of Order dated 29th June, 2017
for exemption from payment of general tax out of the property
tax
[...]"
3. Briefly stated, the Petitioner submits that she is the widow of a martyred
officer of the Indian Army, and as such, is exempt from payment of property tax
pursuant to the Government of Maharashtra (Urban Development Department)
Resolution dated 5th April, 2016, modified by a Corrigendum dated 7th April, 2016 (the
Government Resolution dated 5th April, 2016 and Corrigendum dated 7 th April, 2016
are collectively referred to as the "GR"). The Petitioner submits that the exemption
applies to all taxes levied as part of 'property tax'. The Petitioner submits that MCGM
/ its Standing Committee has misinterpreted and unduly restricted the scope of the
GR by its Circular dated 29 th September, 2017 and Order / decision dated 29 th June,
2017 which limits the scope of the exemption under the GR to 'General Tax' or
'सर्वसाधारण कर' which is one of the many constituent taxes within the umbrella of
'property tax'. The narrowing of the exemption by Respondent No. 1 through the
Circular dated 29th September, 2017 and Order / decision dated 29 th June, 2017 is
similarly under challenge.
4. The Petitioner submits that the GR exempts payment of all forms of
property tax and that MCGM has negated the very intent and purpose of the GR by
selectively applying it only to 'General Tax' or 'सर्वसाधारण कर'. The Petitioner
PA - Nitin Jagtap 6 / 37 WP-2-2021-F.doc
therefore invokes the jurisdiction of this Court under Article 226 of the Constitution
of India for quashing and setting aside the levy of property tax of Rs. 80,241/- for the
period 1st April, 2016 to 31st March, 2020.
II. FACTS
5. The factual aspects of this Writ Petition are not in dispute. Admittedly,
the Petitioner is the widow of Major Rajesh Nair who was martyred on 15 th November,
2001 while discharging his duties as an officer of the Indian Army. The Petitioner has
produced an Eligibility Certificate for claiming exemption from payment of property
tax under the GR.
6. The Government of Maharashtra, through its Urban Development
Department ("UDD"), issued a Government Resolution dated 5th April, 2016
exempting / waiving the levy and collection of property tax from, inter alia, widows of
ex-servicemen (such exemption / waiver being initially limited to one property) levied
under the following statutory provisions:
i. Section 139 of the Mumbai Municipal Corporation Act, 1882 ("MMC
Act");
ii. Section 127 of the Maharashtra Municipal Corporation Act, 1949; and
iii. Section 105 of the Maharashtra Municipal Councils, Nagar Panchayats
and Industrial Townships Act, 1965
7. The translated copy of the GR dated 5 th April, 2016 annexed as Exhibit
PA - Nitin Jagtap 7 / 37 WP-2-2021-F.doc
to the Petition is reproduced hereunder :
Widows of
Defence
Forces
Bravery Medal holders and
Ex-servicemen's
Exemption
from Property Tax
Government of Maharashtra
Urban Development Department
Government Resolution No.: Above Reference Govt. 2016/
Pr. No. 59/20,
Mantralay Mumbai 400032
Date: 5th April 2016
Government Resolution,
Rural Development and Water Conservation Department,
no. VPM 2015 / Case No. 140 / Para 5, dated 31.12.2015
Preamble
As per Government Notification, Department of Rural
Development and Water Conservation, dated 31.12.2015,
property tax has been waived for rural area only for one
residential building used by the Defence Forces Bravery
Medal or Service holder and such widows or dependents.
Various associations of ex-servicemen have called for
exemption from payment of property taxes. The
government was considering waiving property tax of ex-
servicemen in the area of civic self-government.
G.R.:
Under Section 139 of the Mumbai Municipal Corporation
Act, BMC, under Section 127 of the Maharashtra Municipal
Corporation Act, Municipal Corporations and Maharashtra
Municipal Councils, Nagar Panchayats and Municipal
Councils under Section 105 of the Industrial Towns Act,
1965 levy property tax. The government has decided to give
exemption for one property from property tax payment to
property holders and widows of ex-servicemen for their
outstanding performance in selfless defence of the country,
PA - Nitin Jagtap 8 / 37 WP-2-2021-F.doc
risking their lives for the country and living in the area of
civic self-government. A person eligible for such tax
exemption is required to submit a certificate from the
District Army Welfare Officer.
[...]
8. The GR therefore notes that the exemption / waiver is in recognition of
the outstanding performance of officers who risked their lives in the defence of the
country. The waiver initially applied to only one property owned by the widow of the
ex-serviceman.
9. The UDD issued a Corrigendum dated 7th April, 2016 amending the GR.
The said Corrigendum provides that the exemption / waiver would apply to all
properties owned by widows of ex-servicemen and is not limited to one property. The
translated copy of the Corrigendum dated 7 th April, 2016 annexed as Exhibit C to the
Petition is reproduced hereunder :
Widows of Defence Forces
Bravery Medal holders
and Ex-servicemen's
Exemption from Property Tax
Government of Maharashtra
Urban Development Department
Government Corrigendum No.: Above Reference Govt.
2016/Pr. No. 59,
Mantralay Mumbai 400032
Date: 7th April 2016
Read: Govt. Devision, Urban Development Department
No.: Sankirna-2016/Q.No. 59/ Nov-20, Dt. 05.04.2016
Corrigendum: -
PA - Nitin Jagtap 9 / 37 WP-2-2021-F.doc
[...] In the line 7 of paragraph 1 of 05.04.2016 reads
"Widows of ex-servicemen have been exempted from
property tax on one property in their name" instead of "It
has been decided to exempt widows of ex-servicemen from
property tax in respect of properties in their name"
[...]
10. In the present case, Respondent No. 1 issued a Bill dated 4 th June, 2016
under Section 200 of the MMC Act1 towards property tax for the period 1st April,
2016 to 31st March, 2017. The Bill dated 4th June, 2016 provides a breakup of the
property tax levied under the following categories:
i. सर्वसाधारण कर or General Tax
ii. जललाभ कर or Water Benefit Tax
iii. मलनि:सारण कर or Sewerage Tax
iv. मलनि:सारणलाभ कर or Sewerage Benefit Tax
v. म.न.पा. शिक्षण उपकर or Education Cess
vi. राज्य शिक्षण उपकर or State Education Cess
vii. वृक्ष उपकर or Tree Cess
11. The Standing Committee of MCGM passed a Resolution dated 29 th
June, 2017. A copy of this Resolution is not placed on record. An excerpt from the
Resolution dated 29th June, 2017 passed by the Standing Committee of MCGM is
1 200. (1) When any property tax or instalment of any such tax, or shall have become due, the Commissioner shall, with
the least practicable delay, cause to be served upon the person liable for the payment thereof a bill for the sum due.
(2) Every such bill shall specify the period for which, and the premises, dog in respect of which, the tax is charged and
shall also give notice of the time within which appeal may be preferred, as hereinafter provided against such tax.
PA - Nitin Jagtap 10 / 37 WP-2-2021-F.doc
extracted in the Written Submissions dated 15th January, 2021 filed by MCGM at
Paragraph 1.2. The Resolution dated 29th June, 2017, as extracted in MCGM's Written
Submission, reads as follows:
"100% tax exemption on property of one of the property to the
holders of gallantry medals of Defence Force and 100% tax
exemption in general tax on property of widows of ex-servicemen
in their name"
This Resolution is, inter alia, the subject matter of challenge in this Petition as per the
relief sought in prayer clause 25(a)(iii) of the Petition.
12. Respondent No. 1 also issued a Circular dated 29 th September, 2017
under Section 520C of the MMC Act. This Circular is, inter alia, the subject matter of
challenge in this Petition as per the relief sought in prayer clause 25(a)(iii) of the
Petition. This Circular reiterates the Resolution of 29 th June, 2017 inasmuch as it
indicates that the 100% exemption is afforded by the MCGM to the 'General Tax'
component of Property Tax. It also stipulates other terms and conditions for availing
the exemption by the widow of an ex-servicemen. The fulfilment of the other terms
and conditions for availing of the benefit by the Petitioner does not appear to be in
dispute in this Writ Petition.
13. Respondent No. 2 addressed a 'FINAL 48 HOURS NOTICE' dated 14 th
January, 2019 calling upon the Petitioner to pay property tax of Rs. 76,848/- failing
which action under the MMC Act would be initiated.
PA - Nitin Jagtap 11 / 37 WP-2-2021-F.doc
14. The Petitioner addressed a letter / representation dated 31 st January,
2019 to Respondent No. 2 stating that she is a war widow and therefore exempt from
payment of property tax pursuant to the GR. The Petitioner requested MCGM to
revise and adjust the bills keeping in mind the said exemption.
15. Respondent No. 1 then issued, what the Petitioner describes as, an order
dated 6th June, 2019 in furtherance of the Standing Committee Resolution dated 29 th
June, 2017. This Order is, inter alia, the subject matter of challenge in this Petition as
per the relief sought in prayer clause 25(a)(iii) of the Petition. Although the Order of
6th June, 2019 was not annexed to the Petition or produced with the Reply, the same
was subsequently made available to the Court in April, 2021. The Court was informed
that the Order of 6th June, 2019 is essentially the last paragraph of the document that
appears to be a Circular dated 14th March, 2019. This document or Order does not
really carry the matter any further as it seeks to set out the procedural form or manner
in which the application for exemption is to be claimed and processed. It also reiterates
that the exemption is restricted to the 'General Tax' component of 'Property Tax'.
The last paragraph only deals with a claim of refund, with which we are not
concerned.
16. By a letter dated 1st October, 2020, Respondent No. 2 informed the
Petitioner that with respect to the GR, the Standing Committee of MCGM has
accorded its sanction dated 29th June, 2017 to the proposal made by the Tax
Assessment and Tax Collection Department of MCGM to grant 100% property tax
PA - Nitin Jagtap 12 / 37 WP-2-2021-F.doc
exemption to persons holding bravery medals and 100% General Tax exemption to war
widows. It was communicated that the said exemption will be granted with effect from
29th June, 2017 and revised bills were enclosed with this letter.
17. Sometime in November 2020, the Petitioner received an undated
Demand Notice from Respondent No. 2 for payment of Rs. 80,241/- towards property
tax. A perusal of the bills raised by MCGM demonstrates that:
i. MCGM has not granted any exemption of any kind to the Petitioner for
the period 1st April, 2016 to 30 September 2017;
ii. For the period 1st October, 2017 to 31st March, 2020 MCGM has
exempted the Petitioner from payment of General Tax or 'सर्वसाधारण कर', however, no
exemption is granted with respect to payment of the following taxes levied as property
tax:
a. Water Benefit Tax (जललाभ कर);
b. Sewage Benefit Tax (मलनि:सारणलाभ कर) ;
c. Education Cess (म.न.पा. शिक्षण उपकर);
d. State Education Cess (राज्य शिक्षण उपकर);
e. Tree Cess (वृक्ष उपकर); and
f. Street / Road Tax (पथ कर).
18. The Petitioner addressed email representations on 29 th November, 2020
and 6th December, 2020 seeking exemption from all heads of property tax, and not just
'General Tax' or 'सर्वसाधारण कर'. Having failed to receive any favourable response,
the Petitioner has filed the present Writ Petition on 17 th December, 2020.
PA - Nitin Jagtap 13 / 37 WP-2-2021-F.doc
19. A letter dated 7th January, 2021 addressed by the Deputy Secretary,
Government of Maharashtra (UDD) to the Additional Government Pleader is placed
on record of this Court. The letter dated 7 th January, 2021 is addressed by the Deputy
Secretary, Government of Maharashtra (UDD) in response to the Additional
Government Pleader's communication of 6th January, 2021. It is therefore a solicited
response and is issued as instructions for the purposes of this litigation. The letter
dated 7th January, 2021 is reproduced below:
"Respected Madam
In respect of your aforesaid reference letter dated
06.01.2021 on the above subject. As per Government
Resolution dated 05.04.2016 and 07.04.2016, widows of ex-
servicemen and Behaviour [sic.] Award Winners have been
exempted from Property Tax. Property Taxes include water
tax, water benefit tax, sewerage tax, sewerage benefit tax,
general tax, education cess, street tax and betterment tax.
However, as per aforesaid Government Resolutions, only
general tax is exempted from property tax by Urban Local
Bodies.
Yours Sincerely
Sd/-
Shankar T. Jadhav
Deputy Secretary
Government of Maharashtra"
It is clear from the context of the letter that the word behaviour must be read as
bravery.
III. ISSUES WHICH ARISE FOR CONSIDERATION
20. Based on the aforesaid facts, the following issues arise for consideration
in this Writ Petition:
i. Whether the Petitioner, being a widow of an ex-serviceman or war
PA - Nitin Jagtap 14 / 37 WP-2-2021-F.doc
widow, is entitled to exemption from payment of all forms of property taxes under,
inter alia, the MMC Act pursuant to the State Government Resolution dated 5 th April,
2016 read with the Corrigendum dated 7 th April, 2016;
ii. Whether the letter dated 7th January, 2021 addressed by the Deputy
Secretary, UDD, Government of Maharashtra to the Additional Government Pleader
can have any bearing on the interpretation and application of the GR and if so, to what
effect.
iii. Whether the State Government / MCGM has the power to exempt the
levy of property tax under the MMC Act;
iv. If issue No. (i) is answered in the affirmative, whether the Standing
Committee Resolution dated 29th June, 2017 can have the effect of restricting the
exemption under the GR only to 'General Taxes' as one component of property taxes.
IV. PROPERTY TAX LEVIED BY MCGM
21. The property tax levied by Respondent No. 1 for the period 1 st April,
2016 to 31st March, 2020 impugned in this Writ Petition is summarised below:
Period Amount Bill Date / Reference
1st April, 2016 to 30th September, 2016 Rs. 12,808/- 4th June, 2016 / Exhibit
1st October, 2016 to 31st March, 2017 Rs. 12,808/- A at Page No. 22.
1st April, 2017 to 30th September, 2017 Rs. 10,765/- 11th September, 2019 /
1st October, 2017 to 31st March, 2018 Rs. 8,772/- Exhibit J at Page Nos.
1st April, 2018 to 30th September, 2018 Rs. 8,772/- 38 to 40.
1st October, 2018 to 31 March, 2019 Rs. 8,772/-
PA - Nitin Jagtap 15 / 37 WP-2-2021-F.doc
1st April, 2019 to 30th September, 2019 Rs. 8,772/-
1st October, 2019 to 31st March, 2020 Rs. 8,772/-
Total Rs. 80,241/-
V. LEGISLATIVE PROVISIONS GOVERNING THE LEVY AND
COLLECTION OF PROPERTY TAX
A. CONSTITUTION OF INDIA
22. Article 265 of the Constitution of India provides that no tax shall be
levied or collected except by authority of law. Article 246 of the Constitution read with
the Seventh Schedule to the Constitution define the legislative competence of
Parliament and State Legislatures to enact laws, including taxation statutes.
23. The term 'property tax' is not found in any of the lists prescribed under
the Seventh Schedule to the Constitution. However, it is clear from a perusal of, inter
alia, Section 139 and Section 139A of the MMC Act that the levy of property tax
relates to the exclusive prerogative of State Legislatures to enact laws with respect to
'Taxes on lands and buildings' under Article 246(3) of the Constitution read with
Entry 49 of List II of the Seventh Schedule to the Constitution.
24. Article 243X of the Constitution provides for the levy and collection of
taxes by municipalities if so authorised by State Legislatures. Article 243X of the
Constitution reads as follows:
"243X. Power to impose taxes by, and Funds of, the
PA - Nitin Jagtap 16 / 37 WP-2-2021-F.doc
Municipalities.--The Legislature of a State may, by law,--
(a) authorise a Municipality to levy, collect and appropriate
such taxes, duties, tolls and fees in accordance with such
procedure and subject to such limits;
(b) assign to a Municipality such taxes, duties, tolls and fees
levied and collected by the State Government for such purposes
and subject to such conditions and limits;
(c) provide for making such grants-in-aid to the Municipalities
from the Consolidated Fund of the State; and
(d) provide for constitution of such Funds for crediting all
moneys received, respectively, by or on behalf of the
Municipalities and also for the withdrawal of such moneys
therefrom, as may be specified in the law."
25. Property tax is levied in Maharashtra through Municipal Councils and
Municipal Corporations under the provisions of the following State Legislature
enacted legislations:
i. Mumbai Municipal Corporation Act, 1888 (Section 139 read with
Section 139A);
ii. Maharashtra Municipal Corporation Act, 1949 (Section 127 read with
Section 128A);
iii. Maharashtra Municipal Councils, Nagar Panchayats and Industrial
Townships Act, 1965 (Section 105);
iv. Maharashtra (Urban Area) Preservation of Trees Act, 1975 (Section 18);
v. Maharashtra Education & Employment Guarantee Cess Act, 1962
(Sections 4, 6A and 6B); and
PA - Nitin Jagtap 17 / 37 WP-2-2021-F.doc
vi. Maharashtra Housing and Area Development Act, 1976
26. The present matter concerns the levy of property tax in Brihan Mumbai
by the MCGM under the provisions of the Mumbai Municipal Corporation Act, 1888;
the Maharashtra (Urban Area) Preservation of Trees Act, 1975 (which governs the
levy of Tree Cess) and the Maharashtra Education & Employment Guarantee Cess
Act, 1962 (which governs the levy of Education Cess and Employment Guarantee
Cess).
B. MUMBAI MUNICIPAL CORPORATION ACT, 1888
27. Chapter VIII of the MMC Act is titled 'Municipal Taxation'. Section
139 of the MMC Act lists out the taxes to be imposed under the MMC Act and reads
as under:
"139. For the purpose of this Act, taxations shall be imposed as
follows, namely:--
(1) property taxes;
(2) a tax on dogs;
(3) a theatre tax; and
(4) octroi."
28. Section 139A of the MMC Act provides that 'property tax' is levied as a
tax on 'buildings and lands' and consists of (i) water tax, (ii) water benefit tax, (iii)
sewerage tax, (iv) sewerage benefit tax, (v) general tax, (vi) education cess, (vii) street
tax and (viii) betterment charges.
PA - Nitin Jagtap 18 / 37 WP-2-2021-F.doc
"139A. (1) Property taxes leviable on buildings and lands in
Brihan Mumbai under this Act shall include water tax, water
benefit tax, sewerage tax, sewerage benefit tax, general tax,
education cess, street tax and betterment charges.
[...]"
C. MAHARASHTRA (URBAN AREA) PRESERVATION OF TREES
ACT, 1975
29. In addition to the taxes levied as property tax under Section 139A of the
MMC Act, it is to be noted that वृक्ष उपकर or Tree Cess is levied as property tax under
Sections 18(1) and 18(2) of Maharashtra (Urban Area) Preservation of Trees Act,
1975.
"18. Levy and collection of Tree cess. - (1) Where under the
relevant law, an urban local authority is levying a property tax on
buildings and lands, it shall be lawful for such authority,
notwithstanding anything contained in the relevant law, upon a
request by the Tree Authority, to levy, for the purposes of this
Act, an additional tax to be called 'the Tree Cess' on the
buildings and lands, at such rate not exceeding one per cent, of
the rateable value of the property as the said authority may
determine.
[...]
(2) The procedure for levy and collection of the property tax
prescribed under the relevant Act shall mutatis mutandis apply
to the levy and collection of the cess imposed under [sub-section
(1), (1A) or (1C) as the case may be]."
PA - Nitin Jagtap 19 / 37 WP-2-2021-F.doc
D. MAHARASHTRA EDUCATION AND EMPLOYMENT
GUARANTEE CESS ACT, 1962
30. State Education Cess and Employment Guarantee Cess are also levied as
per the provisions of Maharashtra Education & Employment Guarantee Cess Act,
1962 and recovered as property taxes. Sections 4 and 6A of the Maharashtra
Education & Employment Guarantee Cess Act, 1962 reads as follows:
"4. Levy and collection of education cess. - Subject to the
provisions of this Act, there shall be levied, and collected:-
(a) (i) with effect from the 1st day of April 1974, a tax on lands
and buildings in a municipal area at the rates specified in
Schedule A hereto annexed;
(ii) with effect from the 1st day of April 2010, in case of
municipal area of Brihan Mumbai Municipal Corporation
constituted under the Mumbai Municipal Corporation Act and
in case of other municipality with effect from the date on which
the capital value of lands or buildings as basis of levy of property
tax is adopted by such municipality, a tax on lands and buildings
at the rates notified by the Collector, upon receipt of proposal by
municipality, by notification in the Official Gazette, which may
be different for different categories of users of lands or buildings
or parts thereof and which shall not be less than 0.01 per cent,
and not more than 0.3 per cent, of the capital value of lands or
buildings or parts thereof:
[...]
6A. Employment Guarantee Cess. - For the purpose of raising
resources for implementing the Employment Guarantee Scheme
[under the Maharashtra Employment Guarantee Act, 1977,]
there shall be levied and collected in the manner hereinafter
provided the taxes in the next succeeding section (hereinafter
PA - Nitin Jagtap 20 / 37 WP-2-2021-F.doc
together called the Employment Guarantee Cess).
6B. Levy and collection of Employment Guarantee Cess. -
Subject to the provisions of this Act, there shall also be levied
and collected in addition to the tax and special assessment levied
under section 4:-
[(a)(i) with effect from the 1st day of April 1975, a further tax on
lands and buildings in a municipal area used or intended to be
used for a non-residential purpose at the rates specified in
Schedule C hereto annexed;
[...]"
E. MAHARASHTRA HOUSING AND AREA DEVELOPMENT ACT,
31. Repair Cess is levied as per the provisions of the Maharashtra Housing
and Area Development Act, 1976 and recovered as property taxes. Section 82 of the
Maharashtra Housing and Area Development Act, 1976 reads as follows:
"82. (1) For the purpose of this Chapter but subject to the
provisions of section 83, there shall be levied and paid to the
State Government, from such date as may be appointed by the
State Government by notification in the Official Gazette, a tax
on lands and buildings called the Mumbai Building Repairs and
Reconstruction Cess (in this Chapter referred to as "the cess",)
at the rate of so many percentum of the rateable value of the
concerned building or land or part thereof as is provided
therefor under the Second Schedule to this Act.
(2) Subject to the provisions of this Chapter, the cess shall be
collected by the Mumbai Corporation in the same manner in
which the property tax is collected under 5[the Mumbai
PA - Nitin Jagtap 21 / 37 WP-2-2021-F.doc
Municipal Corporation Act] (hereinafter in this Chapter
referred to as "the Corporation Act").
[...]"
32. Therefore, it appears that property tax i.e. a tax on lands and buildings is
levied in the State of Maharashtra through several State Legislations and property tax
includes, on a combined reading of the aforesaid legislations, the following taxes:
i. Water Tax;
ii. Water Benefit Tax;
iii. Sewerage Tax;
iv. Sewerage Benefit Tax;
v. General Tax;
vi. Education Cess;
vii. Street Tax;
viii. Betterment Charges;
ix. Tree Cess;
x. Employment Guarantee Cess; and
xi. Repairs Cess
33. Property Tax levied under the MMC Act includes the following taxes
within its ambit:
i. Water Tax;
ii. Water Benefit Tax;
iii. Sewerage Tax;
iv. Sewerage Benefit Tax;
v. General Tax;
PA - Nitin Jagtap 22 / 37 WP-2-2021-F.doc
vi. Education Cess;
vii. Street Tax; and
viii. Betterment Charges.
F. EXEMPTION FROM LEVY AND COLLECTION OF PROPERTY
TAX
34. Section 144A of the MMC Act empowers the State Government and the
MCGM to grant a concession in payment of property tax under any socially or
ecologically beneficial scheme. Section 144A of the MMC Act reads as under:
"144A. Notwithstanding anything contained in this Act, a
concession in payment of property tax in respect of building and
land, wherein any such socially or ecologically beneficial scheme,
as may be identified for the purposes of this section by the
Municipal Corporation or the State Government, is being
implemented, may be given to such extent of so many per
centum of the property tax payable in respect thereof as the
Corporation may, determine.
Explanation.--For the purposes of this section, "ecologically
beneficial scheme" includes rain water harvesting system, vermi
composting, use of solar energy and other non-conventional
sources of energy, recycling and reuse of waste water, or any
scheme for promoting environment friendly and ecologically
beneficial building construction or the like as the Corporation or
the State Government may identify."
VI. ORDER DATED 8TH JANUARY, 2021
35. The Petitioner sought leave to amend the Petition to challenge the
PA - Nitin Jagtap 23 / 37 WP-2-2021-F.doc
Resolutions / decisions / orders passed by the MCGM or its Standing Committee
which limit the scope of the exemption available to war widows to General Taxes
forming part of Property Tax. This Court passed the following Order:
"P.C. :-
1. Amendments are taken on record and marked 'X' for
identification. Amendments to be carried out in the course of the
day. Reverifcation is dispensed with.
2. Since the facts in the matter are undisputed the
Corporation has not filed any Affidavit. Hearing of the matter
has commenced and is concluded. Parties to file their written
submissions by 15th January, 2021. Upon receipt of the
submissions the matter shall stand closed for orders."
36. The Petitioner filed Written Submissions dated 14th January, 2021 and
MCGM filed Written Submissions dated 15th January, 2021. Further documents and
translations were filed in March / April, 2021.
VII. PETITIONER'S SUBMISSIONS
37. The Petitioner submits :
37.1. That a composite reading of Sections 139, 139A and Section 140 of the
MMC Act show that property tax is a composite tax comprising of various taxes levied
under the head of property tax in accordance with the provisions of the MMC Act.
37.2. That a plain reading of the GR demonstrates that the exemption granted
to war widows relates to the composite levy of property tax which includes all its
PA - Nitin Jagtap 24 / 37 WP-2-2021-F.doc
constituent taxes. Therefore, the exemption is not limited to 'General Tax' but applies
to all taxes levied as property taxes under the MMC Act.
37.3. That the resolution passed by the Standing Committee of MCGM to
limit the exemption to 'General Tax' for war widows is ex-facie illegal and defeats the
laudable object underlying the issuance of the GR.
37.4. That Section 520C of the MMC Act demonstrates that the State
Government has powers to issue directions to the MCGM on matters of policy and
therefore resolutions passed by MCGM cannot limit or otherwise operate in conflict
with GRs issued by the State Government.
37.5. That the Standing Committee Resolutions purports to be issued under
Section 520C of the MMC Act i.e. it purports to be in furtherance of the GR issued by
the State Government. As such, the Resolution passed by the Standing Committee of
MCGM cannot limit or operate in conflict with the GR which contemplate a
composite exemption from payment of all forms of property taxes.
37.6. That the decision taken by the Standing Committee of MCGM is
violative of Article 14 of the Constitution of India.
VIII. RESPONDENT'S SUBMISSIONS
38. MCGM's submissions are as follows:
38.1. That the exemption from payment of property taxes under the GR
issued by the Government of Maharashtra apply equally to holders of gallantry medals
PA - Nitin Jagtap 25 / 37 WP-2-2021-F.doc
of Defence Forces and widows of ex-servicemen and is in identical terms for both
these two categories. However, the Standing Committee of MCGM has approved
100% property tax exemption for holders of gallantry medals of Defence Forces
whereas the exemption for widows of ex-servicemen is limited to 100% of General Tax
forming part of Property Tax.
38.2. That each levy under the umbrella of Property Tax relates to a specific
purpose, as provided for in the statute namely the MMC Act. For example, the monies
collected towards water tax, water benefit tax, sewerage tax and sewerage benefit tax
are to be used for expenses under Chapter X i.e. water supply and Chapter IX i.e.
drains and drainage works respectively. Essentially, although termed as taxes, certain
levies such as Water Tax, Water Benefit Tax, Sewerage Tax and Sewerage Benefit Tax
are actually in the nature of charges for services rendered in the form of supply of
water and drainage facilities etc. and is therefore required to be collected by the
Municipal Corporation in order to fulfil specific civic obligations to the tax payer.
Viewed as such, it may be possible to read the scope of the exemption in the GR to be
limited to General Tax only (which does not relate to any specific quid pro quo) and
not to other heads of taxes which are truly in the nature of charges for services
rendered by the municipality to the tax payer.
38.3. That there is no specific power conferred upon the Corporation or the
Commissioner or the State Government under the MMC Act to exempt payment of
property tax. This must be seen in contrast with other provisions of the MMC Act
PA - Nitin Jagtap 26 / 37 WP-2-2021-F.doc
which confer power on the Municipal Commissioner to exempt articles from the levy
of octroi. Section 144A of the MMC Act titled 'Concession in payment of property
tax' is not relevant in the present matter as it contemplates concessions with respect to
socially and ecologically beneficial schemes which the Explanation to Section 144A
clarifies to mean "rain water harvesting system, vermi composting, use of solar energy
and other non-conventional sources of energy, recycling and reuse of waste water, or
any scheme for promoting environment friendly and ecologically beneficial building
construction or the like as the Corporation or the State Government may identify ".
38.4. That it would be up to this Court to consider whether the GR can be
read as directions or instructions issued by the State Government to the Corporation
under Section 520C of the MMC Act.
IX. ANALYSIS OF THE ISSUES THAT ARISE FOR CONSIDERATION
IN THIS PETITION AND THE COURT'S FINDINGS
Issue No. (I) : Whether the Petitioner, being a widow of an ex-serviceman or war
widow, is entitled to exemption from payment of all forms of property taxes under,
inter alia, the MMC Act pursuant to the State Government Resolution dated 5 th April,
2016 read with the Corrigendum dated 7 th April, 2016
39. The operative part of the GR is reproduced below:
G.R.:
Under Section 139 of the Mumbai Municipal Corporation Act,
PA - Nitin Jagtap 27 / 37 WP-2-2021-F.doc
BMC, under Section 127 of the Maharashtra Municipal
Corporation Act, Municipal Corporations and Maharashtra
Municipal Councils, Nagar Panchayats and Municipal Councils
under Section 105 of the Industrial Towns Act, 1965 levy
property tax. The government has decided to give exemption for
one property from property tax payment to property holders and
widows of ex-servicemen for their outstanding performance in
selfless defence of the country, risking their lives for the country
and living in the area of civic self-government. A person eligble
for such tax exemption is required to submit a certificate from
the District Army Welfare Officer.
[...]
40. The operative part of the GR begins by making a reference to, inter alia,
Section 139 of the MMC Act under which property tax is levied. It then states that the
State Government has decided to grant an exemption to widows of ex-servicemen
from payment of property tax for one property. This restriction of one property has, as
noted above, been subsequently done away with by way of the Corrigendum dated 7
April 2016.
41. The plain language and import of the GR is to exempt widows of ex-
servicemen from payment of property tax under, inter alia, the MMC Act. Clearly, the
exemption provided for by the GR is in no way restricted to any particular component
of property tax which are identified in Section 139A of the MMC Act. The GR must
therefore be understood as exempting property tax as a whole under Sections 139 and
139A of the MMC Act.
PA - Nitin Jagtap 28 / 37 WP-2-2021-F.doc
42. Apart from the components of property tax which are levied under the
charging sections of the MMC Act, there are other components of property tax which
are levied under distinct state legislations each of which may contain their own
charging sections. Those state legislations are referred to above and include, for
example, the Maharashtra (Urban Area) Preservation of Trees Act, 1975 under which
Tree Cess is levied as property tax. Such legislation may mention that a particular cess
is to be levied as property tax and this component is therefore to be found in the
property tax bill raised by MCGM upon an assessee. That, however, does not make
that component or a component which has its origin in a charging section outside the
MMC Act, property tax under Section 139 of the MMC Act.
43. Since the GR expressly refers to the charging sections of three state
legislations namely:
i. Section 139 of the MMC Act;
ii. Section 127 of the Maharashtra Municipal Corporation Act, 1949; and
iii. Section 105 of the Maharashtra Municipal Councils, Nagar Panchayats
and Industrial Townships Act, 1965
in respect of which exemptions are being granted, it would not be possible to extend
the exemption in the GR to the levy of property tax under legislations and charging
sections that do not find mention in the operative and relevant portion of the GR. The
grant of an exemption is entirely for the State Government to determine and therefore
the role of this Court under Article 226 is merely to give effect to it on its true and
PA - Nitin Jagtap 29 / 37 WP-2-2021-F.doc
proper interpretation.
44. In other words, and in answering Issue No. (i) as framed by us above, we
are of the opinion that the issue must be answered in the affirmative with a clarification
that the exemption under the GR does not extend to the levy of tax or cess that form a
part of 'property tax' by way of charging sections in legislations other than those
mentioned in the GR itself. The effect of this in the context of the Impugned Property
Tax Bills is that the Petitioner would not be exempt from paying the component of
Tree Cess.
Issue No. (II): Whether the letter dated 7 th January, 2021 addressed by the Deputy
Secretary, UDD, Government of Maharashtra to the Additional Government Pleader
can have any bearing on the interpretation and application of the GR and if so, to what
effect
45. By a letter dated 7th January, 2021 addressed by the Deputy Secretary,
Government of Maharashtra (UDD) to the Additional Government Pleader,
instructions are given on behalf of the UDD to the Office of the Additional
Government Pleader that whilst the GR exempts payment of property tax (and the
letter specifically acknowledges that property tax includes water tax, water benefit tax,
sewerage tax, sewerage benefit tax, general tax, education cess, street tax and
betterment tax), nevertheless, only general tax is exempted under the GR. It is
pertinent to once again reproduce this letter in its entirety:
PA - Nitin Jagtap 30 / 37 WP-2-2021-F.doc
"Respected Madam
In respect of your aforesaid reference letter dated 06.01.2021 on the above subject. As
per Government Resolution dated 05.04.2016 and 07.04.2016, widows of ex-
servicemen and Behaviour [sic.] Award Winners have been exempted from Property
Tax. Property Taxes include water tax, water benefit tax, sewerage tax, sewerage
benefit tax, general tax, education cess, street tax and betterment tax. However, as per
aforesaid Government Resolutions, only general tax is exempted from property tax by
Urban Local Bodies.
Yours Sincerely
Sd/-
Shankar T. Jadhav
Deputy Secretary
Government of Maharashtra"
46. In our view, a correspondence between the UDD and its advocate cannot
be read as an aid to interpretation of a Government Resolution, especially when its
plain meaning is clear. Even otherwise, not only does the 7 th January, 2021 letter
acknowledge that the exemption under the GR is applicable to property tax (which
includes water tax, water benefit tax, sewerage tax, sewerage benefit tax, general tax,
education cess, street tax and betterment tax) it does not provide any reasons why the
GR must be read down or interpreted to mean an exemption of only the General Tax
component of property tax. Nothing is placed on record by the Government of
Maharashtra such as provisions under its Rules of Business or any other material
which demonstrates that the Deputy Secretary, UDD is competent to alter or restrict
the scope of the GR issued by the Government of Maharashtra through the UDD.
47. It is also clear that this letter is written in response to the AGP's
communication of 6th January, 2021 (which is not placed on record). It is therefore a
PA - Nitin Jagtap 31 / 37 WP-2-2021-F.doc
solicited response and is no more than instructions for the purposes of this litigation.
It is certainly not a reflection as to how the State Government may have
contemporaneously understood the GR which was issued by it as far back as on 5 th
April, 2016.
48. We therefore answer issue No. (ii) in the negative and are of the view
that this letter is completely irrelevant for the interpretation and application of the GR.
Issue No. (III): Whether the State Government / MCGM has the power to exempt the
levy of property tax under the MMC Act
49. Respondent No. 1 contends that the exemption itself from the levy of
property tax under the MMC Act is without authority of law. Ex-facie, this is an
extraordinary submission considering that there is a GR issued by the State
Government and importantly, a Standing Committee Resolution of the Respondent
No. 1 itself exempting 'general taxes' which is a part of property tax. If Respondent
No. 1 is now questioning the authority as submitted in Paragraph 5 of its Written
Submissions, it would certainly have to explain how the GR and the Standing
Committee Resolution came to be issued or passed in the first place.
50. Whilst the conduct of Respondent No. 1 is relevant to note, we do not
propose to answer this issue only on its conduct, or for that matter, the action of the
State Government in issuing the GR.
51. In our view, the authority of law to exempt the payment of property taxes
PA - Nitin Jagtap 32 / 37 WP-2-2021-F.doc
under the GR is traceable to Sections 144A of the MMC Act read with Section 520C
of the MMC Act. For convenience, these provisions are set out below:
"144A. Notwithstanding anything contained in this Act, a
concession in payment of property tax in respect of building and
land, wherein any such socially or ecologically beneficial scheme,
as may be identified for the purposes of this section by the
Municipal Corporation or the State Government, is being
implemented, may be given to such extent of so many per
centum of the property tax payable in respect thereof as the
Corporation may, determine.
Explanation.--For the purposes of this section, "ecologically
beneficial scheme" includes rain water harvesting system, vermi
composting, use of solar energy and other non-conventional
sources of energy, recycling and reuse of waste water, or any
scheme for promoting environment friendly and ecologically
beneficial building construction or the like as the Corporation or
the State Government may identify.
*****
520C. Notwithstanding anything contained in this Act, the State
Government may issue to the Corporation general instructions
as to matters of policy to be followed by the Corporation in
respect of its duties and functions, and in particular it may issue
directions in the larger public interest or for implementation of
the policies of the Central Government or the State Government
and the National or the State level programmes, projects and
schemes. Upon the issue of such instructions or directions, it
shall be the duty of the Corporation to give effect to such
instruction or directions :
Provided that, the State Government shall, before issuing any
instructions or directions under this section, give an opportunity
to the Corporation to make representation within fifteen days as
PA - Nitin Jagtap 33 / 37 WP-2-2021-F.doc
to why such instructions or directions shall not be issued. If the
Corporation fails to represent within fifteen days or, after having
represented, the State Government, on considering the
representation, is of the opinion that issuing of such instructions
or directions is necessary, the State Government may issue the
same."
52. Our findings in respect of the interpretation and application of these
Sections is as follows:
i. Significantly, both these provisions are non-obstante clauses and begin
with the phrase 'Nothwithstanding anything contained in this Act'...' . Therefore as
between these provisions on the one hand, and any other provisions such as charging
provisions under Sections 139 and 139A of the MMC Act, it is the application of
Section 144A and Section 520C which will prevail in the event of any conflict;
ii. Section 144A confers power upon the State Government or MCGM to
grant concessions in payment of property tax towards implementation of any socially
or ecologically beneficial scheme identified for the purposes Section 144A by the
Municipal Corporation or the State Government. Whilst the Explanation to Section
144A pertains to 'ecologically beneficial scheme', there is no doubt that the
explanation cannot curtail the scope of Section 144A which also encompasses socially
beneficial schemes that are being implemented by the State Government or MCGM
and which provide for concessions from payment of property taxes;
iii. The GR issued by the State Government reflects a socially beneficial
PA - Nitin Jagtap 34 / 37 WP-2-2021-F.doc
scheme as it pertains to concessions to be given on humanitarian grounds to widows of
ex-servicemen. Concessions on such humanitarian grounds would, in our view, clearly
fall within the expression 'socially beneficial schemes' as used in Section 144A.
iv. Whilst Section 144A does then proceed to state that the percentum of
concession even in respect of schemes formulated by the State Government will be
determined by Respondent No. 1, it would be necessary to read Section 144A with the
mandate of Section 520C to appreciate if a decision to grant full exemption from
payment of property taxes by the State Government under the GR can or must be
implemented under the MMC Act by Respondent No. 1. Section 520C which, as
noted above, also begins with a non-obstante clause, essentially provides that
Respondent No. 1 is duty bound to give effect to any instructions or directions issued
by the State Government to Respondent No. 1 in matters of policy that may have been
determined by the State Government. It is clear to us that the GR by which the State
Government has categorically exempted widows of ex-servicemen from payment of
property taxes constitutes an instruction or a direction as to a matter of policy, which
is binding upon Respondent No. 1. Significantly, the GR is copied to Commissioners of
all Municipal Corporations of the State as also to Commissioners and Directors,
Directorate of Municipal Council Administration. It therefore clearly informs
Respondent No. 1 of the instruction or direction as to a matter of policy. The Standing
Committee Resolution in fact makes reference to Section 520C and is issued to give
effect to the instructions or directions issued by the State Government, namely the
PA - Nitin Jagtap 35 / 37 WP-2-2021-F.doc
GR.
v. Given the statutory provisions, and on a harmonious interpretation of
Section 144A read with Section 520C of the MMC Act, it is not possible for us to
accept Respondent No. 1's submission that the grant of exemption under the GR is
without authority of law. Neither can we accept an interpretation based only on
Section 144A, without regard to Section 520C, namely that the Respondent No. 1
alone can determine the percentage of concession in payment of property tax.
53. We therefore conclude by answering issue No. (iii) in the affirmative and
hold that there is sufficient legal and statutory basis in the provisions of the MMC Act
for grant of exemption from payment of property tax as contemplated by the GR.
Issue No. (IV): If issue No. (i) is answered in the affirmative, whether the Standing
Committee Resolution dated 29th June, 2017 can have the effect of restricting the
exemption under the GR only to 'General Taxes' as one component of property taxes.
54. In answering issue No (iii), we have expressed our views on the
provisions of Section 144A and Section 520C of the MMC Act, all of which are
relevant to this issue as well. We have, as noted above, held that Respondent No. 1 is
bound to give effect to the instructions and directions of the State Government and
that the GR is in the nature of an instruction and direction as also an expression of a
socially beneficial scheme or policy to grant concession from payment of property
taxes on humanitarian grounds.
PA - Nitin Jagtap 36 / 37 WP-2-2021-F.doc
55. Thus, Respondent No. 1 cannot in any way deviate from giving effect to
the GR in its entirety by restricting its implementation only to concessions in respect
of 'General Tax' which is only one component of property tax levied under the
provisions of the MMC Act. There is no doubt in our mind that the Resolution of the
Standing Committee of 29th June, 2017 is a clear departure or curtailment of the
benefit as plainly provided for in the GR. This is not permissible within the scheme of
the MMC Act as inter alia borne out from Sections 144A read with 520C that have
been discussed and explained in answer to issue No. (iii).
56. The Resolution passed by the Standing Committee of MCGM is with
effect from 29th June, 2017. However, there is no explanation offered by MCGM as to
why it has levied property tax, including General Tax, for the period 5 th April, 2016 to
29th June, 2017 i.e. prior to the date on which the Standing Committee of MCGM
resolved to limit the exemption under the GR to General Tax only and not to other
components of property tax under the MMC Act. In any view of the matter, the levy
of property tax under the MMC Act for the period 5 th April, 2016 to 29th June, 2017 is
illegal and liable to be quashed. However, as has been held by us, the levy of property
tax even for the period after 29th June, 2017 is illegal, being contrary to the GR.
57. We therefore answer Issue No. (iv) in the negative and hold that it is the
GR that is required to be implemented in letter and spirit.
PA - Nitin Jagtap 37 / 37 WP-2-2021-F.doc
ORDER
i. In view of our findings and conclusions as expressed above, we
accordingly hold that the levy of property tax by the MCGM under the provisions of
the MMC Act, as set out in the Impugned Property Tax Bills dated 4 th June, 2016 and
11th September, 2019 is contrary to the GR and are hereby quashed and set aside.
ii. As already stated above the Petitioner would, however, be liable to pay
property tax in respect of those components which are charged under statutory
provisions other than the MMC Act. Such components or parts of the overall levy of
property tax as set out in the Impugned Bills (i.e. Tree Cess) are not exempted by the
GR and are therefore not quashed and set aside.
iii. The Writ Petition is accordingly disposed off. In the facts and
circumstances of the case, there shall, however, be no order as to costs.
( RIYAZ I. CHAGLA, J. ) ( S.J.KATHAWALLA, J. )
