Kerala High Court
Rebu Mathew Issac vs State Of Kerala on 28 May, 2024
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
TUESDAY, THE 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
WP(C) NO. 20264 OF 2013
PETITIONERS:
1 REBU MATHEW ISSAC
S/O.MATHAI ISSACMG 262,PANAMPILLY NAGAR,
KOCHI-682036,REPRESENTED BY POWER OF ATTORNEY HOLDER
AND FATHER,MATHAI ISSAC.
2 ROBI VARGHESE ISSAC
AGED 37 YEARS
S/O.MATHAI ISSAC,G 262,PANAMPILLY NAGAR,
KOCHI-682036,REPRESENTED BY POWER OF ATTORNEY HOLDER
AND FATHER,MATHAI ISSAC.
BY ADVS.
SRI.SANTHOSH MATHEW
SRI.ARUN THOMAS
SRI.ALPHIN ANTONY
SRI.JENNIS STEPHEN
SRI.VIJAY V. PAUL
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY SECRETARY,LOCAL SELF GOVERNMENT
DEPARTMENT,SECRETARIAT,THIRUVANANTHAPURAM,PIN-695001.
2 CORPORATION OF KOCHI
REPRESENTED BY SECRETARY,PARK AVENUE,
ERNAKULAM,PIN-682011.
3 SECRETARY
CORPORATION OF KOCHI,PARK AVENUE,ERNAKULAM,PIN-682011.
4 REVENUE RECOVERY
CORPORATION OF KOCHI,PARK AVENUE,ERNAKULAM,PIN-682011.
BY ADVS.
SHRI.K.JANARDHANA SHENOY, SC, KOCHI MUNICIPAL
CORPORATION
SRI.K.ANAND, SC, COCHIN CORPN.
R.HARISHANKAR
SMT.K.B.SONY-GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
28.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 20264 OF 2013
2
JUDGMENT
1. The petitioners have filed this Writ Petition with the averments that
they along with their sister Smt.Reeba Issac constructed a five storied
building after obtaining Ext.P4 Building Permit dated 28/05/2008.
Ext.P5 Occupancy Certificate was issued to them on 08/09/2010.
Though Amendment Act 30 of 2009 dated 07/10/2009 was passed
substituting Section 233 of the Kerala Municipalities Act by which
method of assessment of property tax was changed from Annual Rental
Value basis to Plinth Area basis, the building of the petitioners
assessed on Annual Rental Value Method with effect from the year
2010-11. Against Ext.P6 Order assessing property tax on Annual
Rental Value Method, the petitioners filed Appeal to the Standing
Committee. The Appeal was disposed as per Ext.P7 Order by giving
reduction of 5% for two building numbers and 10% for two other
building numbers. In the Revision filed by the petitioners against Ext.P7
Order before the Tribunal for Local Self Government Institutions, Ext.P8
Order was passed finding that the Respondent No.2 has not complied
with the amended Section 233 by passing necessary Resolution; that
the Rules for the collection of tax was not introduced when tax was
WP(C) NO. 20264 OF 2013
levied for the first time from the petitioners; and that the initial
assessment done by the Respondent No.3 was without any authority of
law and setting aside the impugned orders and directing that the
Respondent No.3 may assess the building of the petitioners in
accordance with the statutory provisions and on getting proper authority
of law. Pursuant to Ext.P8 Order, Respondent No.3 passed Ext.P3
Order assessing property tax afresh as per the repealed Annual Rental
Value method in derogation of the rates prescribed by the Corporation
in conformity with the Kerala Municipality (Property Tax, Service Tax
and Surcharge) Rules 2011. With these averments the petitioners filed
the Writ Petition on 13/08/2013 challenging Ext.P3 and seeking
direction to the Respondents Nos. 2 to 4 to assess building tax of the
petitioners in conformity with the provisions of the Kerala Municipality
(Property Tax, Service Tax and Surcharge) Rules 2011 and amended
Section 233 of the Municipality Act at the notified rate and other reliefs.
2. The Respondents 2 to 4 filed Counter Affidavit dated 20/0/2022
justifying their action and contending, inter alia, that Government has
passed Order SRO 34/2011 dated 14/01/2011 to assess property tax
based on floor area after zone wise determination and issuance of
subsequent Notification based on the same; that the process of
WP(C) NO. 20264 OF 2013
determining property tax on the basis of floor area has been started for
the Applications received from April 2013 and that reassessment of the
property tax of the petitioners was done as per Annual Rental Value
Method which was the method of assessment by the Corporation
before April 2013.
3. Today, when the matter came for hearing the Learned Counsel for
the petitioner submitted that though as per Ext.P3 Notice, annual
property tax payable by the petitioner is Rs.1,53,464/-, the petitioner
has been paying annual property tax at the rate of Rs.1.2 Lakhs and
that he cleared the entire property tax upto 2023-2024 at the rate of
Rs.1.2 lakhs which is permitted by this Hon'ble Court as per order dated
14/11/2022 in I.A No.2/2022.
4. The learned standing counsel for the corporation submitted there
are several issues with respect to the implementation of Plinth Area
Method. One issue is with respect to the date of implementation of the
Plinth Area Method. By Government Order dated 06/03/2019, the
original date of implementation of 01/04/2013 is modified to 01/04/2016.
By the said Government Order, the implementation of Plinth area
Method was directed to be done in a time bound manner and after
completing the process and the Corporation has started issuing fresh
WP(C) NO. 20264 OF 2013
demand notices since the year of 2021 on the basis of the same and
there are several writ petitions filed challenging the said revised
demands also.
5. The learned counsel for the petitioners points out that in Paragraph
8 of the Counter Affidavit filed by the Respondent No. 2 to 4 that they
have stated about re-fixation of the annual rental value of the building at
certain rates and he submitted that the petitioners are ready to ready to
clear the property tax upto 01/04/2016 as per the said rates admitted by
the respondents 2 to 4. Paragraph 8 is extracted hereunder.
"8. The petitioner approached this Hon'ble Court by
filing WP(C) NO. 5989/2011 seeking expeditious
disposal of the Review Petition filed by the petitioners
against the assessment of property tax. The said writ
petition was disposed of direction the Corporation to
take a decision within one month. The Secretary of the
Corporation, in compliance with the direction of the
Hon'ble Court issued order dated 23.05.2011 re-fixing
the annual rental value of the building bearing
No.53/2707-A, B,C,D and E at the rate of Rs.11/-,
Rs.10/- Rs.9.50, Rs.9.50, Rs.9/- respectively, per
sq.feet. Aggrieved by Ext.P6 the petitioners preferred
an appeal before the Standing Committee on Taxation
Appeals and the Committee, after hearing the
petitioners and after taking into consideration the place
where the building is located, the nature of
construction, nature of use of the property, the rate of
rent, etc., issued Ext.P7 order reducing the property
tax by 5% for building 53/2707 A, B and reducing the
property tax by 10% for building 53/2707-C, D and E."
6. In view of the said submission of the Counsel for the petitioners,
Ext.P3 order is set aside and the Respondent No.3 is directed to issue
WP(C) NO. 20264 OF 2013
a revised demand to the petitioner for the property tax of their buildings
upto 01/04/2016 as per Annual Rental Value Method at the rates shown
in Paragraph No.8 extracted above and the petitioners are directed to
pay additional amount, if any, on the basis of such demand. On
issuance of such revised demand, if there is any excess payment by
the petitioners, the same shall be adjusted to the property tax payable
for the subsequent periods. With respect to the period commencing
from 01/04/2016, the Respondent No.3 is directed to assess the
property tax of the petitioners' building on Plinth Area Method in
conformity with the provisions of the Kerala Municipality (Property Tax,
Service Tax and Surcharge) Rules 2011 and amended Section 233 of
the Municipality Act and issue Demand to the petitioners. The
petitioners shall pay the balance tax after adjusting the tax already paid.
If excess payments are there for the period commencing from
01/04/2016, the same shall be adjusted in the future years. The
Respondent No.3 shall issue a revised demand to the petitioner for the
property tax of their buildings upto 01/04/2016 within a period of two
months from the date of recipt of this judgment. The Respondent No.3
shall complete the assessment for the period commencing from
01/04/2016 and pass necessary order after giving an opportunity of
WP(C) NO. 20264 OF 2013
hearing to the petitioner within a period of four months from the date of
receipt of this judgment
7. Counsel for the petitioners pointed out that since the tenants of the
petitioners require Upto-date Property Tax Receipt emergent for
renewal of their Municipal Licenses, the petitioner has filed I.A
No.2/2024 to direct the respondents No.3 and 4 to accept 1.2 lakhs
towards property tax for the Building numbers 55/958, 55/959, 55/960,
55/961 and 55/962 of the petitioners for the financial year 2024-2025,
under protest. Though I am disposing the writ petition with the aforesaid
directions to the Respondent No.3 to issue fresh demands, in view of
the urgency highlighted by the petitioner, the petitioner is permitted to
pay property tax at the rate of Rs.1.2 lakhs for the financial year 2024-
25 as an interim measure without awaiting fresh demand from the
Respondent No.3 and Respondent No.3 is directed to accept the same
and to issue Receipt.
Sd/-
M.A.ABDUL HAKHIM
JUDGE
sms
WP(C) NO. 20264 OF 2013
APPENDIX OF WP(C) 20264/2013
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE POWER OF ATTORNEYS
EXECUTED BY THE IST PETITIONER IN
FAVOUR OF THE POWER HOLDER
Exhibit P2 TRUE COPY OF THE POWER OF ATTORNEYS
EXECUTED BY THE 2ND PETITIONER IN
FAVOUR OF THE POWER HOLDER
Exhibit P3 TRUE COPY OF THE ORDER DATED
Exhibit P4 TRUE COPY OF THE BUILDING PERMIT
BEARING NO.KRPI-117/08 DT.28/05/08.
Exhibit P5 TRUE COPY OF THE OCCUPANCY CERTIFICATE
DT.08/09/10.
Exhibit P6 TRUE COPY OF THE ORDER PASSED BY THE
4TH RESPONDENT BASED ON THE ORDER OF
THE 3RD RESPONDENT IN REVIEW
APPLICATION
Exhibit P7 TRUE COPY OF THE ORDER PASSED BY THE
4TH RESPONDENT IN PURSUANCE OF THE
ORDER OF THE STANDING COMMITTEE FOR
APPEAL ON TAXATION DT.18/08/2011.
Exhibit P8 TRUE COPY OF THE LEARNED TRIBUNAL FOR
LOCAL SELF GOVERNMENT INSTITUTIONS IN
R.P.102/2011 DT.12/03/2012
Exhibit P9 TRUE COPY OF THE REVIEW APPLICATION
FILED BEFORE THE 3RD RESPONDENT
DT.10/04/2013.
Exhibit P10 TRUE COPY OF THE DETAILS OF THE
PROPERTY TAX PAID BY THE PETITIONERS
FROM THE DATE OF COMPLETION OF THE
BUILDING.
Exhibit P11 TRUE COPY OF THE NOTIFICATION ISSUED BY
THE RESPONDENT CORPORATION.
Exhibit P12 TRUE COPY OF THE TAX RECEIPT SHOWING
THE REMITTANCE OF PROPERTY TAX BY THE
PETITIONERS FOR THE PREVIOUS YEAR
Exhibit P13 TRUE COPY OF THE TAX RECEIPT SHOWING
THE REMITTANCE OF PROPERTY TAX FOR THE
PREVIOUS YEAR BY THE PETITIONERS DATED
12-09-2023
