Indira Gandhi National Center For ... vs Union Of India (Uoi) And Ors.
2004 Latest Caselaw 135 Del

JUDGMENT

Vikramajit Sen, J.

1. It appeals that the Petitioner had applied for exemption from payment of property tax for a considerable number of years. By a letter dated March 17, 1993, the Director (Tax) had conveyed the decision to withdraw the demand for property tax for the year 1992-1993 under Section 70(2) of the Punjab Municipal Act. It had further conveyed the decision that the said exemption will be available to the Centre for 1993-1994 and 1994-95 also, provided that no portion of its property is let out or used for any commercial activity of any kind. In the course of the arguments, it has not been contended by learned Counsel for the Respondent that any portion of the building of the Petitioner has been let out or has been used for commercial activities of any kind.

2. By Order dated 16.11.2000, under Section 62(1)(a) of the NDMC Act, 1994, the Assistant Secretary (Tax) has rejected the Petitioner's application/representation for exemption from payment of property tax. I do not propose to go into the merits of the decision since the Order, in my view, has to be set aside on the short ground that the determination as to whether the Petitioner was entitled to exemption from payment of property tax under Section 62 must be taken by the Council. This is amply clear from a conjoint reading of Section 72 and Section 124 of the NDMC Act. This matter is also no longer res integra in view of the observations made by the Hon'ble Supreme Court in Indian Red Cross Society v. New Delhi Municipal Committee and Ors., . It has been observed that the Chairperson has the power under Section 72 to amend the assessment list. Thereafter, Section 124 clarifies that it is the Council which may by its Resolution exempt either wholly or in part any property from the payment of tax levied under the Act.

3. It is sought to be contended by learned Counsel for the NDMC that by virtue of Section 18 the Chairperson can carry out any act on behalf of the Council, but this pertains to the exercise of executive powers. Even the assessment list is to be prepared and finalised by the Council and not the Chairperson or any other Executive of the NDMC. In the present case it is not even the Chairperson's decision which is in question. The decision, as we have already seen, is that of the Assistant Secretary, who has not been empowered to do so by the Act.

4. The Petition is allowed to the extent that the Order dated 16.11.2000 is set aside. The decision whether to grant or refuse the exemption to the Petitioner from the payment of property tax in accordance with the NDMC Act should now be taken by the Council, within ninety days. The Petitioner be granted a personal hearing. The Petitioner has been depositing the demanded property tax without prejudice to its contentions in the Writ Petition. Till the disposal of its representation for exemption the Respondents are restrained from taking any coercive steps for the recovery of taxes.

5. Petition stands disposed of.