Delhi High Court
M/S Arham Cables Pvt. Ltd. vs Municipal Corporation Of Delhi on 18 July, 2022
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 10417/2022, CM APPL. 30054/2022 and CM APPL.
30053/2022
Date of Decision: 18.07.2022
IN THE MATTTER OF:
M/S ARHAM CABLES PVT. LTD. ..... Petitioner
Through: Mr. Abinash Kumar Mishra and Mr.
Gaurav Jain, Advocates.
versus
MUNICIPAL CORPORATION OF DELHI ..... Respondent
Through: Mr. Manu Chaturvedi, Standing
Counsel with Mr. Malhar Desai,
Advocate for respondent No. 1.
Mr. Arun Panwar, Advocate for
GNCTD.
CORAM:
HON'BLE MR. JUSTICE MANOJ KUMAR OHRI
JUDGMENT
MANOJ KUMAR OHRI, J. (ORAL)
1. By way of the present petition filed under Articles 226/227 of the
Constitution of India, the petitioner impugns demand notice dated
11.05.2022, whereby the respondent-Corporation has assessed the property
of the petitioner retrospectively with effect from 01.04.2004 and demanded
an amount of Rs.66,84,876/- as arrears of property tax including interest and
penalty as on 10.05.2022. The petitioner has also assailed the order dated
Digitally Signed
By:SANGEETA ANAND
Signing Date:20.07.2022
18:34:57
30.05.2022 of rent attachment issued by the respondent.
2. Learned counsel for the petitioner submits that the petitioner had
purchased the subject property i.e., 12, Rajasthan Udyog Nagar, G.T.
Karnal Road, Delhi - 110054 by way of Sale Deed dated 15.01.2007
whereafter, it had remained unoccupied till the year 2017, when the same
was let out to M/s Amazon Transportation Services Pvt. Ltd. The petitioner
continued to pay property tax as per Unit Area Method. He submits that by
way of the impugned notice, the respondent has raised a demand of
Rs.66,84,876/- towards arrears of property tax by applying wrong use factor
and assessing the petitioner's property as commercial property, which ought
to have been assessed as industrial-vacant upto 2017 and industrial
thereafter. He further submits that the said assessment order was passed
without giving any Show Cause Notice. The property tax demand was
challenged by the petitioner by filing its objections on 26.05.2022. It is
submitted that the respondent has even issued 'No Dues Certificate' dated
30.01.2020 to the petitioner and as such the respondent cannot demand the
property tax prior to the year 2019-20 by way of impugned demand notice
dated 11.05.2022.
It was next submitted that the property was measured in the absence
of the petitioner and assessment order has been passed retrospectively in
respect of portions of the property which were not even constructed in the
year 2004 but were constructed in the year 2017. He submits that the
petitioner has also deposited a sum of Rs.5,00,000/- towards the demand
raised for the base years 2004-05 and 2020-21 vide cheque dated
25.05.2022. During the course of submissions, learned counsel for the
petitioner has submitted that the petitioner has deposited further amounts
Digitally Signed
By:SANGEETA ANAND
Signing Date:20.07.2022
18:34:57
towards the property tax for the assessment year 2022-2023. He also submits
that the respondent has not given any credit for the amount(s) already
deposited. Lastly, it is submitted that despite the petitioner filing objections
to the impugned demand notice, the respondent without taking into account
such objections/grant of personal hearing, has arbitrarily passed the order
dated 30.05.2022 with respect to the petitioner's property.
3. Issue notice.
4. Learned Standing counsel for the respondent accepts notice and has
disputed the submissions made on behalf of the petitioner. He submits that
the aforesaid order dated 30.05.2022 has been issued to the
assessee's/petitioner's tenant. He further submits that the petitioner was duly
served with a Show Cause Notice dated 04.08.2021, which was even
responded by the petitioner. It is submitted that the petitioner was also
served with assessment order and demand notice, both dated 24.03.2022.
5. At this stage, learned Standing counsel for the respondent without
prejudice to the rights and contentions of the respondent, on instructions,
submits that the respondent would grant a personal hearing to the petitioner.
He, however, prays that the amount attached by the bank be directed to be
remitted to the Corporation.
6. Keeping in view the aforesaid facts and circumstances as well as the
discussion noted hereinabove and without prejudice to the rights and
contentions of either of the parties, the petition is disposed of with the
following directions:-
i) The impugned demand notice dated 11.05.2022 is
hereby set aside. The matter is remitted to the Deputy
Assessor & Collector for fresh assessment.
Digitally Signed
By:SANGEETA ANAND
Signing Date:20.07.2022
18:34:57
ii) Petitioner shall appear before the Deputy Assessor &
Collector on 29.07.2022 at 11.00 a.m. along with documents
in support of his assessment.
iii) Petitioner would be at liberty to file further objections, if
any, on the said date.
iv) The officers of the Corporation shall measure the
property in the presence of the petitioner and thereafter,
after giving an opportunity of a personal hearing, pass a
fresh assessment order.
v) Petitioner shall remit a sum of Rs.15 lacs to the
respondent-Corporation on or before 29.07.2022, which
shall be retained by the bank and the same shall be subject
to the fresh assessment order to be passed by the
respondent-Corporation.
vi) On remittance of the said amount of Rs.15 lacs by the
petitioner, further attachment of rent of the petitioner shall
be discontinued until fresh assessment order is passed.
vii) The Deputy Assessor & Collector shall pass a fresh
assessment order within a period of two months from
29.07.2022.
7. The petition is disposed of in the above terms. Miscellaneous
applications are disposed of as infructuous.
(MANOJ KUMAR OHRI)
JUDGE
JULY 18, 2022/ga
Digitally Signed
By:SANGEETA ANAND
Signing Date:20.07.2022
18:34:57
