TMI Blog2003 (7) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... of the town and suburbs of Patna. Section 123 of the Act allows the Corporation, with the previous approval of the State Government, to impose various taxes and fees. We are concerned with clauses (a), (b) and (c) of section 123 which provide for the imposition of property tax, water tax and latrine tax on holdings situated within Patna - the tax being assessed on the annual letting value. Section 130 provides that the annual value of a holding shall be deemed to be the gross annual rental at which the holding may reasonably be expected to let. This however is subject to rules that may be prescribed by the State Government. Any tax which is assessed on the annual value of a holding, other than the latrine tax or drainage tax, is payable by the owner of the holding within the Corporation. The latrine or drainage tax is payable by the persons in actual occupation of such holdings. (Section 132 (1), (2)). Section 133 provides for the preparation of a Valuation List in four stages: -- (I) determination to impose a tax to be assessed on the annual value of holdings (II) inquiry to be held by the Chief Executive Officer (III) the determination of the annual value of all holdings and ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice, by beat of drum and by playcards posted in conspicuous places throughout Patna, or when any part of Patna has been assessed, then in that part of Patna, where the said list may be inspected. (2) The Chief Executive Officer shall also in all cases in which any property is for the first time assessed or the assessment is increased give notice thereof to the owner of the property. This section envisages that the assessment list which has been prepared or revised, must be signed by the Chief Executive Officer. After this the Chief Executive Officer is required to give public notice of the Assessment List. The mode of giving public notice is by beat of drum and by placards , the latter of which is required to be posted in conspicuous places throughout Patna. It needs to be emphasised that the section also provides for assessment of a part of Patna, in which case the placards are required to be posted in conspicuous places in that part. The object of the publication appears from the last part of sub section (1) of section 149 and that is so that the said list may be inspected . We may mention here that the question which arises for consideration in connection with this se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the objector, the chief executive officer shall refund to the person from whom the same has been levied or realised, the amount of tax or instalment, or the excess thereof over the amount properly leviable in accordance with such final decision, as the case may be, or adjust such excess amount against any future demand . Every valuation made by the Chief Executive Officer under section 153 is final subject to the provisions of sections 151 and 152. In other words until and unless an order is passed under section 151 (3) by the Chief Executive Officer or under section 152 by the District Judge, the valuation made by the Chief Executive Officer must prevail. Finally when the objections have been determined, and appeals disposed of, the assessment list shall be authenticated by the Chief Executive Officer in the manner specified. The importance of the authentication lies in the fact that under subsection (2) of section 154, the assessment list shall be conclusive evidence of the amount of holding tax leviable on each holding within Patna in the financial year to which the list relates . This, in brief, is an overview of the provisions which are relevant for the disposal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id down a different method of valuation and assessment. There is no dispute that the Corporation followed the Rules and the notifications issued thereunder in preparing Valuation and Assessment Lists thereby revising the holding tax for the first time since 1978-79. However, the process was not completed in respect of the entire area covered by the Act at the same time, but in three phases. According to the Corporation, this was because they were understaffed and were otherwise administratively handicapped. Three notices were published under section 149 (1), not by way of beat of drum nor by posting placards at conspicuous places, but by publication in the newspapers. Each of the three notices referred to separate areas of Patna and were dated 26 December 1993, 1st October 1995 and 30th December 1995 respectively. In addition separate notices were issued to the owners of holdings as and when the area in which a particular holding was situated was notified. The appellants also received notices under section 149 (2). In 1995, they filed objections under Section 150. The objections have not yet been disposed of by the Chief Executive Officer. However, the Corporation has continue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficulties. Further, it held that since there was no allegation of any mala fides, the action of the respondents is saved in this case but keeping in view the spirit of Article 14 of the Constitution of India in any view they would be well advised to take prompt steps in advance so that a general assessment for the entire area under the Corporation may be made effective from one date . The fourth submission of the appellants was not considered. However the High Court directed the concerned authority to dispose of the petitioners' applications expeditiously and in any case within three months from the date of production/communication of a copy of this order . Each of the four submissions made by the appellants before the High Court have been reiterated before us. The submission of the appellants that the Corporation was bound to comply with the provisions of the Act for valuation and assessment before publishing the assessment list is unacceptable in view of the promulgation of the 1993 Rules, and the notifications issued thereunder, the validity of all of which has been upheld by this Court. It is not in dispute that the valuations have been made and assessments have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ists. The word 'ordinarily' tones down the force of 'shall' which immediately precedes it, and indicates that the requirements with regard to revision of the assessment in every five years and to include all the holdings, are not absolute but only directory and can be departed from in extraordinary circumstances, or in the case of particular holdings for good reasons. This being the correct import of the word 'ordinarily', it follows therefrom that in the case of a holding which is excluded from the quinquennial revision of assessment, the old valuation and assessment lists do not lapse but continue to remain in force till they are altered or amended in accordance with the procedure laid down in the Act. This position of the law is clear from a reading of the last clause of sub-section (2) of Section 106, which provides that every valuation and assessment entered in a valuation or assessment list shall be valid from the date on which the list takes effect in the municipality and until the first day of April following the completion of a new list. The key word repeatedly occurring in the sub-section is 'list' which appears to have been advisedly used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable to pay water tax and latrine tax would be seriously affected and would not have an opportunity of challenging the imposition of the tax on them. Incidentally, in the objections filed by the appellants their contention is that the holdings owned by them were not liable to payment of latrine tax or water tax because neither of the services were available. However, the matter has to be decided as a principle and not with reference to the appellants' case. Nobody disputes that publication and the giving of notice to persons likely to be affected by the assessment list is a must. The appellants have admitted publication of the assessment lists in three newspapers. It is not their case that such publication did not serve the purpose of notifying those who might be affected by the assessment lists, of their existence. Indeed it appears to us that the requirement to notify people by beat of drum is an anachronism which appears to be inappropriate in the present day and age in a large city like Patna. The High Court's apprehension that holding this provision as directory is likely to cause confusion and mischief in future and it is not for this Court to substitute the wisd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tunity had been granted to the assessees to object to the assessment lists as amended, the assessment list had not been prepared in accordance with law. The decision is factually distinguishable. Since in that case there was no publication at all, the Court was not called upon to consider the question whether an alternative and equally effective mode of publication would have sufficed. This in fact was the exact question which had been decided by a bench of five judges in the case of Raza Buland Sugar Co.Ltd. Vs. Municipal Board, Rampur reported in 1965 (1) SCR. 970. In that case municipal water tax was sought to be levied under section 131 of the U. P. Municipalities Act, 1916. In terms of section 131 (3), the Municipal Board was required to publish its proposal relating to the tax and the draft Rules in connection therewith along with the notice in the specified format. Section 94 (3) provided for the manner of publication of the resolution of the municipal board. The method of publication prescribed was in a local paper published in Hindi and where there is no such local paper, in such manner as the State Government may, by general or special order, direct . The publication ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paring his defence : (3) be supplied with copies of statements of witnesses, if any, recorded earlier and the inquiry officer shall furnish such copies not later than three days before the commencement of the examination of the witnesses by the inquiring authority . Copies of the statements of the witnesses were not supplied to the charged officer. However the officer had been permitted to inspect and take notes of the statements of the witnesses more than three days prior to the examination of the witnesses. The entire inquiry was challenged by the charged officer as being vitiated, by reason of the non-supply of the statements in compliance with the regulation. The challenge was rejected by this Court by holding that the provision was not of a mandatory character and that it had to be examined from the standpoint of substantial compliance and unless prejudice had been caused by the non-compliance, the action would be sustained. (See also Venkataswamappa V. Special Deputy Commissioner (Revenue 1997 9 SCC 128). With the greatest respect, we would adopt the reasoning of the aforesaid two decisions of this Court in rejecting the appellants' submission that the mode of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unaffected by the mere filing of an application under Section 150. If the result of the application is in favour of the owner, the assessment list must be amended to give effect to such result. Unless the application of the appellants under Section 150 ends in a result which is different from the assessment list, the assessment list would continue to be operative, and the respondent can recover taxes on the basis of the assessment and valuation list despite the filing of objections under Section 150. Besides the reference to both sections 151 and 152 in Section 153 makes it clear that the same incidence relating to the recovery of taxes pending either the determination of the objections under section 151 or the adjudication of the appeal under section 152, would prevail. If this construction is not put on section 153, it would mean that by merely filing an objection, the objector would be able to effectively stop the realisation of tax on the basis of the assessment list until such time as his objection is heard and decided. This could not have been legislatively intended. As has been seen in this case that although the appellants had filed their objections in 1995, they are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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