TMI Blog2019 (5) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... und cables are laid, the demand of property tax from the petitioner falls foul of Section 132 (1) of the Act, 1956, which implies that the property tax is payable by the owners of building or land - HELD THAT:- Since the definition of land in the CG Municipal Corporation Act is pari materia with the definition of land in the Gujarat Act, it is incorrect on the part of the petitioner to treat the subject levy of property tax, merely because while collecting the levy, it has used the term for laying of cables. The levy is in fact for use of land for laying of cable. Next argument of learned counsel for the petitioner is that the Corporation has not adopted the procedure provided under Section 133 of the Act, 1956 to impose the subject tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for payment of property tax by the Municipal Corporation, Bhilai, in WP No. 1273 of 2003, demand notice under assail has been issued by the Municipal Corporation, Raipur. 3. The petitioner has been granted licence by the Government of India to establish, maintain and operate telephone services in the area described as M. P. Circle covering present Chhattisgarh also. In order to provide telephone services, the petitioner has laid telecommunication cable in different parts of the State of Chhattisgarh including within municipal limits of the city of Raipur and Bhilai. For digging soil in public streets and/or the land belonging to local authorities/municipal corporation, the petitioner has obtained permission under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of the Act, 1885. The petitioner would refer to a circular issued by the Ministry of Surface Transport, Government of India under which there was no proposal for charging any ground rent for laying cables from the private telecom licencee over the national highways. 6. The petitioner satisfied some demand by depositing the amount under protest but his representation opposing the demand was not decided. The petitioner would further contend that Section 132 of the Act, 1956 does not allow or permit the Corporation to impose any tax on under ground telephone cables. It is also submitted that the petitioner is only user of the land but does not own the land, therefore, for this reason also, the property tax cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is on the basis that the petitioner being not the owner of the land in which under ground cables are laid, the demand of property tax from the petitioner falls foul of Section 132 (1) of the Act, 1956, which implies that the property tax is payable by the owners of building or land. In other words, the petitioner not being the owner of the land, tax is on the cable itself, which is beyond the scope of the provision. 9. The argument though appearing attractive deserves outright rejection in view of the law laid down by the Supreme Court in the matter of Ahmedabad Municipal Corporation Vs. GTL Infrastructure Limited and Others {(2017) 3 SCC 545}. In the said matter, the Supreme Court was considering levy of property tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly fastened to any thing attached to the earth and also land which is being built upon or is built upon or covered with water. 11. The Supreme Court, after dealing with competency of levying property tax on mobile towers decided the issue of levy of tax on mobile towers or levy on the yield from the land and building to conclude thus at para 31 :- 31. The measure of the levy, though may not be determinative of the nature of the tax, cannot also be altogether ignored in the light of the views expressed by this Court in Goodricke {Goodricke Group Ltd. Vs. State of W. B. , 1995 Supp (1) SCC 707}. Under both the Acts read with the relevant Rules, tax on mobile towers is lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 133 (4) provides that nothing contained in this section shall apply to tax mentioned in clause (a) of sub-section (1) of Section 132, which shall be charged and levied in accordance with Section 135. The property tax being charged under Section 132 (1)(a) read with Section 132 (6)(j), the argument resting on non-compliance of Section 133 has no force. 14. In the return filed by both the Municipal Corporations of Raipur and Bhilai, it has been stated on oath that the respective Municipal Corporation have passed a resolution to impose property tax for the use of land for laying under ground cable on the basis of per running meter. Based on the resolution, assessments on the basis of records were carried and such data for l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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