TMI Blog1999 (10) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... ute. Words cannot be added to or substituted so as to give a meaning to the statute which will serve the spirit and intention of the legislature. - 1990 of 1995 - - - Dated:- 28-10-1999 - BENCH: S.P. BHARUCHA B.N. KIRPAL V.N. KHARE S.S.M. QUADRI D.P. MOHAPATRA JUDGMENT 1999 ( 4 ) Suppl. SCR 195 D.P. MOHAPATRA, J. This case calls in question the vires of proviso to clause (b) of sub-section (2) of Section 127-A of Madhya Pradesh Municipalities Act, 1961 (for short the 'Act') and the levy and collection of property tax in respect of the buildings owned by the appellant. The relevant facts of the case, shorn of unnecessary details, may be stated as under: The appellant and respondents 4 to 7 are joint owners of 13 separate items of house properties bearing No. 56/2(1) to 56(2)/13 situated in ward No. 15 of Raigarh Municipal area. The assessment proceeding for the purpose of levying property tax was initiated under the provisions of the Madhya Pradesh Municipalities Act, 1961 (M.P. Act No. 37 of 1961) (hereinafter referred to as 'the Act') by the Municipal Council, Raigarh, respondent no.2 herein. The Municipality purporting to invoke the proviso to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of the construction made by a Bench of three learned Judges in the above quoted decision, the question of considering the constitutional validity of the provision does arise. However, the question for consideration also is whether the alternative construction which would support the constitutional validity of the provision is to be preferred and is also available on the language of the statute. It is, therefore, appropriate that the matter is considered by a Bench of five learned Judges." The question that arises for consideration is when several items of properties (houses, buildings or lands) within the municipality, the annual letting value of each of which dose not exceed Rs. 1,800 per annum, are owned by one person, then, is the owner liable to pay property tax for such properties. Since determination of the question largely depends on interpretation of Section 127 (A) and its interaction with other relevant provisions of the Act it would be convenient to quote the relevant statutory provisions before proceeding to consider the merits of the case. S.126 Definition of annual letting value - In this Chapter, the expression "annual letting value" shall mean: (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he annual letting value 20 per centum of the annual exceeds Rs. 24000 letting value (2) The property tax levied under sub-section (1) shall not be leviable in respect of the following properties, namely:- (a) building and lands owned by or vesting in-(i) the Union Government (ii) the State Government; (iii) the Council; (b) buildings and lands the annual letting value of which does not exceed eighteen hundred rupees: Provided that if any such building or land in the ownership of a person who owns any other building or land in the same Municipality, the annual letting value of such building or land shall for the purpose of this clause, be deemed to be the aggregate annual letting value of all buildings or lands owned by him in the Municipality. (Emphasis supplied) xxx xxx xxx" From the statutory provisions quoted above it is clear that the incidence of the tax is the house, building or land situated within the limits of the municipality. The tax is to be paid by the owner(s) of the house, building or land. The amount of tax to be paid by the owner(s) is to be determined with reference to the annual letting value of the house, building or land in que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning the amount to be paid as tax in respect of each building. In our considered view this position cannot be accepted. The intention of the Legislature in a taxation statute is to be gathered from the language of the provisions particularly where the language is plain and unambiguous. In a taxing Act it is not possible to assume any intention or governing purpose of the statute more than what is stated in the plain language. It is not the economic results sought to be obtained by making the provision which is relevant in interpreting a fiscal statute. Equally impermissible is an interpretation which does not follow from the plain, unambiguous language of the statute. Words cannot be added to or substituted so as to give a meaning to the statute which will serve the spirit and intention of the legislature. The statute should clearly and unambiguously convey the three components of the tax law i.e., the subject of the tax, the person who is liable to pay the tax and the rate at which the tax is to be paid. If there is any ambiguity regarding any of these ingredients in a taxation statute then there is no tax in law. Then it is for the legislature to do the needful in the matter. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso nugatory and defeat the object of the Act. This construction, in our considered view, amounts to supplementing the charging section by including something which the provision does not state. The construction placed on the said provision does not flow from the plain language of the provision. The proviso requires the exempted property to be subjected to tax and for the purpose of valuing that property alone the value of the other properties is to be taken into consideration. But, if in doing so, the said property becomes taxable, the Act does not provide at what rate it would be taxable. One cannot determine the ratable value of the small property, by aggregating and adding the value of other properties, and arrive at a figure which is more than possibly the value of the property itself. Moreover, what rate of tax is to be applied to such a property is also not indicated. Take, for instance, a case where a person owns 10 buildings, 8 of which are small ones fetching annual rental value of Rs. 1,500 each and the other 2 fetch annual rental value of Rs. 60, 000 each; then applying the ratio of Administrator Municipal Corporation, Bilaspur (supra) the annual rental val ..... X X X X Extracts X X X X X X X X Extracts X X X X
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