Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2011 (4) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 1499 - SUPREME COURTApplicability of the Government Grants - agreement for erection of oil storage tank - petroleum products to the site decanted - lease or license - The Appellant had been granted under the Government Grant Act separate and distinct licenses for the purpose of maintaining depot for storage of petroleum products at a yearly license fee. the Appellant is in possession of the buildings since 1958. They have been permitted to raise huge constructions and the nature of construction is of wide range. An administration block along with tanks for storing petroleum had been constructed. A boundary wall around installations and administrative block had also been constructed. The Respondent MCD passed an assessment order with regard to the property tax qua the aforesaid property and confirmed the rate able value proposed by it. The said assessment order was challenged by the Appellant. HELD THAT:- It is well settled legal position that a deed must be read in its entirety and reasonably. The intention of the parties must also as far as possible be gathered from the expression used in the document itself. By reason of the agreement in question, the buildings in question do not belong to the Administration. Admittedly, it belongs to the grantee i.e. Appellant herein. As discussed, the Oil tanks has been construed as buildings for the purposes of tax. Therefore, Section 119 of the MCD Act would not apply to the building in question. That being the case, the grantee/Appellant is liable to pay tax although the ownership of the land may belong to the Administration. Section 115 of the MCD Act clearly provides that the general tax shall be payable in respect of lands and buildings. Such lands and buildings may be in lawful occupation of the owner. Once it is held that the grantee were liable to pay tax, the same becomes payable from the date of accrual of the liability. The said position is also fortified from specific stipulation in the agreement that the liability to pay all taxes including municipal taxes is on the grantee. Therefore, we are of the considered view that the document in question constitutes lease in favor of the Appellant-grantee; and accordingly liable to pay taxes. It is well settled legal position that a deed must be read in its entirety and reasonably. The intention of the parties must also as far as possible be gathered from the expression used in the document itself. we are of the considered view that the document in question constitutes lease in favor of the Appellant-grantee; and accordingly liable to pay taxes. we find no merit in the present appeal, accordingly, the same is liable to be dismissed
|