CHAPTER IV

(MUNICIPAL FUND AND PROPERTY)

 

1[51.    Constitution of municipal fund. – There shall be formed for each municipality a municipal fund, and there shall be placed to the credit thereof.

(a)              all sums received by, or on behalf of the committee under this Act or otherwise 2[land];

(b)             the balance (if any) standing at the credit of the municipal fund of the municipality at the commencement of this Act.] 3[……..]

4[(c) …………..]

 

52.      Application of fund. – (1) The committee shall set apart and apply of the municipal fund.

(a)                          first, such sum as the committee may be required by the 6[State] Government to contribute towards the cost of such Local Self-Government Board or Inspectorate as the 1[State] Government may establish, for the purpose of advising, assisting and supervising the work of municipal committees and other local bodies:

Provided that such sum shall not exceed an amount equal to one perfect of the income for the financial year preceding the year, in which the committee is called upon to make the contribution]:

          

2[(c)    thirdly, such sum as may be required to meet the charges, of its own establishment, including such subscriptions and contributions as are referred to in Sections 43 and 44, and such sum as may be required for maintenance of a police establishment under Chapter VI;

3[(d)    fourthly, such sum as may be required to pay the expenses incurred in auditing the accounts of the committee, and such portion of the costs of any public expenditure by the 4[Central Government] or the State Government as may be held by the State Government to be equitably payable by the committee in return for services rendered to it.

5[(e)    fifthly, such sum as the committee may be required by the State Government to contribute towards the maintenance of pauper lunatics or pauper lepers sent from any place in the 6[State] to mental hospitals or public asylums whether in or outside the State.

(f)       sixthly, such sum as may be due to the State Government in respect of the cost of maintenance by the State Government, on behalf of the committee, of water-works, drainage, sewage or other works.]

7(g)     seventhly, such sum to be paid annually by the committee to the State Government by way of contribution as is equivalent to-

           (i)        the total provision made in the budget for the year 1957-58 under the main head ‘Education’ excluding 8[the provision under sub-heads relating to public libraries, colleges, reading rooms and museums or pertaining to such other matters not relating to schools as the State Government may specify, educational grants and the provisions made for ‘original works’ relating ot schools; and

           (ii)       a sum representing one per centum of the total income from its own resources for the year 1957-58, in lieu of the deductions made for ‘original works’ made under clause (i):

           Provided that in respect of the financial year 1957-58, the committee shall made a payment to the State Government of the sums which have remained unexpanded on 31st March, 1958, out of the provisions under the head ‘Education’ in the budget of 1957-58;

           9[Provided further that in computing the total provision under sub-section (1), school fees or other moneys received from students by the Committee, income from any property transferred to the State Government, donations for education from the public and such other income of the Committee as may be specified by the State Government shall be excluded.]

           (2)       Subject to the charge specified in sub-section (1) and to such rules as the State Government may make with respect to the priority to be given to the several duties of the committee, the municipal fund shall be applicable to the payment in whole or part, of the charges and expenses incidental ot the following matters within the municipality, and with the sanction of the 1[State Government] outside the municipality, namely: -

(a)   the construction, maintenance, improvement, cleansing and repair of all public streets, bridges, town-walls, town-gates, embankments, drains, privies, latrines, urinals, tanks and water-courses 2[and the prepartion of compost manure];

(b)   the watering and lighting of such streets or any of them:

(c)   the construction, establishment and maintenance of schools, hospitals and dispensaries and other institutions for promotion of education or for the benefit of the public health, and of rest-houses, sarais, poor-houses, markets, 3[stalls], encamping grounds, ponds, and other works of public utility, and the control and administration of public institutions of any of these descriptions:

(d)   grant-in-aid to schools, hospitals, dispensaries, poor-houses, leper-asylums, and other educational or charitable institutions;

(e)   the training of teachers and the establishment of scholarships;

(f)    the giving to relief and the establishment and maintenance of relief works in time or famine or scarcity;

(g)   the supply, storage and preservation form pollution of water for the use of men or animals;

(h)   the planting and preservation of trees; and the establishment and maintenance men or animals;

(i)     the taking of a census, the registration of births, marriages and deaths, public vaccination and any sanitary measure;

(j)     the holding of fairs and any industrial exhibitions;

(k)   the preparation and maintenance of a record of rights in immovable property and

(l)     all acts and things which are likely to promote the safety, health, welfare or convenience of the inhabitants or expenditure whereon may be declared by the committee, wit the sanction of the 4[State] Government to be an appropriate charge on the municipal fund.

               

  5[(3)              Notwithstanding any contained in the foregoing sub-sections of this Act no charges or expenses shall be paid from the municipal fund incidental to any matter which has been specifically declared by the State Government by general or special order to be a matter in regard to which no expenditure shall be met from municipal fund .

           (4)       Subject to the provisions of this Act and the rules and bye-laws made thereunder it shall be the President and of any member presiding at any meeting of the committee or of a sub-committee to disallow the consideration or discussion of any matte for which provision is not made in Section 52 or any other section of the Act.]

 

53       Payment of salary to president out of funds. – With the sanction of the State Government a salary of such amount as the State Government may fix may be paid to the President of a committee not being salaried 6[servant of the] 7[Government] out of the municipal fund.

 

54       Custody of municipal fund. – 8[(1) All moneys payable to the credit of the municipal fund shall be received by a municipal employee authorized by the committee in this behalf and shall be forthwith paid into the State Bank of India, in a Treasury of the Government, in a Nationalised Bank or in any other bank approved by the Government in this behalf.

 

Explanation. – For the purposes of this section Nationalised Bank means a Bank specified in column 2 of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.]

           1[(2) In places where there is no such treasury, sub-treasury or bank, the municipal fund may with the previous sanction of the 2[Deputy Commissioner] be deposited with any banker, or person acting as a banker, and who has given such security for the safe custody and repayment on demand of the fund if deposited as the 3[Deputy Commissioner] may in each case think sufficient.]

 

55.      Investment of same. – 4[(1) A committee may, with the previous sanction of the 5[Deputy Commissioner], invest any portion of its municipal fund in securities of 6[the Central Government], or invest it in such other securities or place it in such manner as the State Government may approve in this behalf, and vary such investment or placement for others of like nature.]

           (2)       The income resulting form 7[such] securities 8[or placements] and the proceed of the sale of the same shall be credited to the municipality.

 

56.      Property vested in committee. – (1) Subject to any special reservation made or to any special conditions imposed by the 9[State] Government, all property of the nature hereinafter in this section specified and situated within the municipality, shall vest in and be under the control of the committee, and with all other property which has already vested or may hereafter vest in the committee, shall be held and applied by it for the purposes of this Act, that is to say: -

  (a)     all public town-walls, gates, markets, 10[stalls], slaughter-houses, manure and night-soil, depots and public buildings of every description which have been constructed or are maintained out of the municipal fund:

  (b)     all public streams, springs and works for the supply, storage and distribution of water for public purposes, and all bridges, buildings, engines, materials and things connected therewith or appertaining thereto, and also any adjacent land (not being private property) appertaining to any public tank of well;

11[(c)    all public sewers and drains, and all sewers, drains, culverts and water-courses in or under any public streets, or constructed by or for the committee alongside any public street, and all works, materials and things appertaining thereto:]

(d)       all dust, dirt, dung, ashes, refuse, animal matter or filth or rubbish of any kind or dead bodies of animals, collected by the committee from the street, houses, privies, sewers, cess-pools or elsewhere or deposited in places fixed by the committee under Section 154;

(e)       all public lamps, lamp-posts, and apparatus connected therewith or appertaining thereto:

(f)       all land or other property transferred to the committee by the 12[Government] or acquired by gift, purchase or otherwise for local public purposes;

13[(g) all public streets, not being land owned by 14(Government) and the pavements, stones and other materials, thereof, and also trees growing on and erections, materials, implements and things provided for such streets.]

 

(2)       Where any immovable property is transferred otherwise than by sale by the 1[State Government to a municipal committee for public purposes, it shall be deemed to be a condition of such transfer, unless specially provided to the contrary, that should the property be at any time resumed by Government, the compensation payable therefore shall, notwithstanding anything to the contrary in the Land Acquisition Act, 1894, in no case exceed the amount if any paid to the Government for the transfer, together other works executed on the land by the municipal committee.

 

2[(3)         The committee shall maintain a register and map of all immovable property of which it is the proprietor, or which vests in it; or which it holds in trust for the State Government.]

 

57               Management of public institutions. – (1) The management, control and administration of every public institution maintained out of the municipal fund, shall vest in the committee.

 

(2)       When any public institution has been placed under the direction, management and control of the committee, all property, endowments and funds belonging thereto shall be held by the committee in trust for the purposes to which such property, endowments and funds were lawfully applicable at the time when the institution was so placed:

Provided that the extent of the independent authority of the committee in respect of any such institution may be prescribed by the 3[State] Government:

Provided also that nothing in this section shall be held to prevent the vesting of any trust property in the Treasurer of Charitable Endowments under the Charitable Endowments Act, 1890.

 

58.      Acquisition of land. – When any land, whether within or without the limits of a municipality, is required for the purposes of this Act, the 4[State] Government may, at the request of the committee, proceed to acquire it under the provisions of the Land Acquisition Act, 1894, and on payment by the committee of the compensation awarded under that Act, and of any other charges incurred in acquiring the land, the land shall vest in the committee.

 

Explanation. – When any land is required for a new street or for the improvement of an existing street, the committee may proceed to acquire, in addition to the land to be occupied by the street, the land necessary for the sites of the buildings to be erected on both sides of the street and such land shall be deemed to be required for the purposes of this Act.

 

59.      Transfer to government of property vesting in committee. – The committee may, with the sanction of the 5[State] Government transfer to 6[Government] any property vesting in the committee under Section 56 or Section 57, but not so as to affect any trusts or public rights subject to which the property is held:

           7[Provided that where a committee has passed a resolution under Section 3 of the Punjab Local Authorities (Aided Schools) Act, 1959 or the State under Section 5 of that Act, all rights and interests in the establishment maintenance and management of the aforesaid schools immediately before the 1st October, 1957, including all interests in the lands, buildings, playgrounds, hostels of the said schools as also in the movable properties like furniture, books, apparatus, maps and equipment pertaining thereto shall be deemed to have been transferred to the State Government on the date and, all unspent balances in respect of grants and contributions received for the maintenance and promotion of these schools shall be deemed to have been surrendered to the State Government.]

 

60.      Saving of Act XI of 1879: - Nothing in this Act shall affect the 1[Local Authorities Loan Act, 1879.]

 

CHAPTER  V

TAXATION

2[61.    Taxes which may be imposed. – Subject to any general or special orders which the State Government may make in this behalf, and to the rules, any committee may, from time to time for the purposes of this Act, and in he manner directed by this Act, impose in the whole or any part of the municipality any of the following taxes, namely: -

           “(a)3   A tax payable by the owner of building and lands not exceeding fifteen per cent of the annual value.”

(i)      not exceeding 4[…..] one anna, per square yard of the ground area; or

(ii)              not exceeding 5[…..] three rupees, per running foot of frontage in street or bazaars;

           6[….]

           Provided 7[…..] that in the case of lands and buildings occupied by tenants in perpetuity, the tax shall be payable by such tenants;

 

(b)       a tax on persons practicing any profession or art or carrying on any trade or calling in the municipality;

(c)       a tax payable by the owner, on all or any vehicles 13[other than motor vehicles] animals used for riding, draught or burden, and dogs, when such vehicles, animals used as aforesaid, and dogs are kept within the , municipality;

 

14(d)    a tax, payable by the employer, on menial domestic servants;

 

(e)       a tax, payable by the occupier of any buildings in respect of which the committee has, in exercise of the powers conferred by Sections 159 to 165 of this Act, undertaken the house scavenging;

 

15[(ee) in addition to the tax imposed under clause (a), scavenging tax, payable by the occupier, on buildings and lands of such percentage of the annual value thereof as the State Government may, by notification, declare to be reasonable for providing for the collection, removal and disposal by the committee of all filth and polluted an obnoxious matter from latrines, urinals, cess-pools and for efficiently maintaining and repairing the municipal drains constructed or used for the reception or conveyance of such filth or polluted and obnoxious matters:

 

1[(f) a tax payable by persons presenting building applications to the committee:

 

Provided that a committee shall not impose any tax without theprevious sanction of the 2[State] Government when-

           (i)        it consists of members less than three-fourths of whom have been   elected; or

           (ii)       its cash balances have, at any time within the three months   preceding the date of the passing of the resolution imposing the    tax, fallen below Rs.20,000 or one-tenth of the income accrued in    the previous financial year whichever amount shall be less.

           (2)       Save as provided in the foregoing clause, with the previous sanction of the State Government any other tax which 3[State Legislature] has power to impose in the State under the 4[Constitution].

 

           5[(3) - ]

 

           6[Nothing in this section shall authorize the imposition of any tax which the State Legislature has no power to impose in the 7[State] under the

 

8[Constitution]

 

Provided that a committee which immediately before the commencement of 9[Constitution] was lawfully levying any such tax under this section as then inforce may continue to levy that tax until provision to the contrary is made 10[Parliament]

 

11[Explanation: - In this section “tax” includes any duty, cess or fee.]

 

CASE LAW

Sections 61 and 62 – Imposition of sewerage cess and enhancement of water rate have been challenged by the petitioners as voilative of Section 62 (3) of the Act as imposed without inviting objections – Also violative of Section 97 (2) as impugned levy has been imposed by the Government and not by the committee – And lastly that the sewerage cess is actually a fee/tax which has to be imposed on the principal of quid pro quo – Held – Neither any tax has been imposed by the Municipal Committee nor the rates have been enhanced by it – Committee has merely carried out the orders of the Government – Procedure contained in Sections 61 and 62 was not required to be followed – Impugned orders suffer from no infirmity – Theory of quid pro quo does not have even the remotest application to the facts of the present case – Petitioners themselves have said the sewerage cess to be a tax – Tax is a compulsory exaction from the citizen and its validity is not judged on the basis of services provided by the authority – Mathematical exactitude is no longer required – There is no merit in petition which is dismissed.

 

1[62.    Procedure to impose taxes: - (1) A committee may, at a special meeting pass a resolution to propose the imposition of any tax under Section 61.

(2)             When such a resolution has been passed the committee shall publish a notice, defining the class of persons or description of property proposed to be taxed, the amount or rate of the tax to be imposed and the system of assessment to be adopted.

(3)             If the committee decides to amend its proposals or any of them, it shall publish amended proposals along with a notice indicating that they are modification of those previously published for objection.

(4)             Any objections which may within thirty days be received to the amended proposals shall be dealt with in the manner prescribed in sub-section (3).

(5)             When the committee has finally settled its proposals it shall, if the proposed tax falls under clauses (b) to (f) of sub-section (1) of section 61 direct that the tax be imposed, and shall forward a copy of its order to the effect through the 2[Deputy Commissioner], to the State Government and if the proposed tax falls under any other provision it shall submit its proposals together with the objection if any made in connection therewith to the 3[Deputy Commissioner.]

(6)             If the proposed tax falls under clause (a) sub-section (1) of Section 61, the 4[Deputy Commissioner], after considering the objections received under sections (3) and (5) may either refuse to sanction the proposals or return them to the committee for further consideration, or sanction them without modification or with such modification or with such modification not involving an increase of the amount to be imposed, as he deems fit, forwarding to the 5[State] Government a copy of the proposals and his order of sanction; and if the tax falls under sub-section (2) 6[--] of section 61, 7[Deputy Commissioner] shall submit the proposals and objections with his recommendations to the State Government.

(7)             The State Government on receiving proposals for taxation under sub-section (2) 8[--] may sanction or refuse to sanction the same or return them to the committee for further consideration.

(8)             9[--]

(9)             (a) When a copy of order under sub-sections (6) and (7) has been received, or

b) when a proposal has been sanctioned under sub-section (8) 10[-] the State Government shall notify the imposition of the tax in accordance with such order or proposal, and shall in the notification specify a date not less then 11[one month] from the date of notification, on which the tax shall come into force.

(10)       A tax leviable by the year shall come into force on the first day of January or on the first day of April or on the first day of July,  or on the first day of October in any year and if it comes into force on any other than the first day of the year by which it is leviable shall the leviable by the quarter till the first day of such year then next ensuing.

(11)          A notification of the imposition of a tax under this Act shall be conclusive evidence that the tax has been imposed in accordance with the provisions of the Act.

CASE LAW

           - Section 62 to 66 – Objections that the Committee has failed to comply with the provisions of Ss. 62 to 66 if the Act which requirement is mandatory and such non-compliance renders the assessment invalid, illegal and void – Held – Petitioner himself has admitted that he received notice for the year 1973-74 and filed objections such and other admissions in para 6 of the plaint go against the contention of the petitioner – Petitioner cannot be allowed to come round and say that Mandatory requirements of the provisions of Ss. 62-66 have not been complied with as relating to the levy of tax on the property in dispute.

                     

1996 (3) ALL INDIA LAND LAWS REPORTER (407)

 

1[62-A. Power of Government in taxation: (1) The State Government may, by special or general order notified in the official Gazette, require a Committee to impose any tax mentioned in section 61, not already imposed are such rate and within such period as may be specified in the notification and the Committee shall thereupon act accordingly.

(2)       The State Government may require a Committee to modify the rate of any tax already imposed and thereupon the Committee shall modify the tax as required within such period as the State Government may direct.

(3)       If the Committee fails to carry out any order passed under sub-section (1) or (2) the State Government may by a suitable order notified in the official Gazette impose or modify the tax.  The order so passed shall operate as if it were a resolution duly passed by the Committee as if the proposal was sanctioned in accordance with the procedure contained in section 62.

 

PROCEDURE FOR ASSESSING IMMOVABLE PROPERTY.

 

63.      Preparation of assessment list. – The committee shall cause an assessment list of all buildings and lands on which any tax is imposed to be prepared, containing: -

(a)                                                                                                                                                                                                                                                                                                                the name of the street or division in which the property is situated;

(b)                                                                                                                                                                                                                                                                                                                designation of the property, either by name or by number sufficient for identification;

(c)                                                                                                                                                                                                                                                                                                                the names of the owner and occupier, if known;

(d)                                                                                                                                                                                                                                                                                                                the annual 2; and

(e)                                                                                                                                                                                                                                                                                                                the amount of the tax assessed thereon by the committee.

 

64.      Publication and completion of assessment list.- When the assessment list has been completed, the committee shall give public notice thereof, and of the place where the list or a copy thereof may be inspected and every person claiming to be either owner or occupier of property included in the list and any authorized agent of such person shall be at liberty to inspect the list and to make extracts therefrom without charge.

 

65.      Public notice of time fixed for revising assessment list. – (1) The committee shall at the time of the publication of such assessment list give public notice of a time, not less than one month thereafter, when it will proceed to revise the valuation and assessment; and in all cases in which any property is for the first time assessed, or the assessment thereof is increased, it shall also give notice thereof to the owner or occupier of the property.

 

(2)       All objections to the valuation and assessment shall be made in writing before the time fixed in the notice, or orally or in writing at that time.

 

66.             Settlement of lists. –1(1) After the objections have been enquired into and the persons making them have been allowed an opportunity of being heard either in person making them have been allowed an opportunity of being heard either in person or by authorized agents, as they may think fit, and the revision of the valuation and assessments has been completed, the amendments made in the list shall be authenticated by the signatures of at least two members of the committee, who shall at the same time certify that no valid objection has been made to the evaluation and assessment contained in the list, except in the cases in which amendments have been entered therein and subject to such amendments as may thereafter be duly made, the tax so assessed shall be deemed to be the tax for the year commencing on the first day of April of the year in which notice was issued under section 64 or section 65 of the Act:

Provided that this date will not be earlier to the date on which the building came into existence.]

(2)       The list when amended under this section shall be deposited in the committee’s office and shall there be open during office house to all owners or occupiers of properly comprised thein or the authorized agents of such persons, and public notice that it is so open shall forthwith be published.

CASE LAW

           S.s 66-68 – House tax – Imposition of house tax challenged as not having been imposed after fixing annual rental value of property – Held – From the perusal of record, it cannot be said that annual rental value of the property has been fixed before assessing and imposing House tax – Matter remanded to Municipality to proceed in accordance with the law.

 

1997 ALL INDIA LAND LAWS REPORTER 395

           - Ss. 66 & 68 – Estoppel – Respondent State contended that appellant admitted to pay the tax on the basis of actual rent received from Bank – They are estopped from going back from the admission – Held – Contention cannot be appreciated as there is no estoppel against the stature – When the statute prescribes a mode to determine annual rental value, it has to be done in that manner only.

 

1997 ALL INDIA LAND LAWS REPORTER (395)

 

67.      Further amendments of assessment list. – (1) The committee may at any time amend the list by inserting the name of any person whose name ought to have been or ought to be inserted, or by inserting any property which has been erroneously valued or assessed through fraud, accident or mistake, whether an the part of the committee or of the assessee, or in the case of tax payable by the occupier by a change in the tenancy, after giving notice to any person affected by the amendment, of a time, not less than one month from the date of service at which the amendment is to be made.

(2)             Any person interested in any such amendment may tender his objection to the committee in writing before the time, fixed in the notice or orally or in writing at that time, and shall be allowed an opportunity of being heard in support of the same in person or by authorized agent, as he may think fit.

2[(3)  Notwithstanding anything contained in this Act, the Committee may with a view to give effect to the annual value as modified by the Punjab Municipal (Amendment) Act 11, 1994 amend the assessment list of the year commencing on the first day of April of the relevant year for increasing or reduced annual value of any property and of the assessment thereupon after giving notice at any time to any person affected by the amendment of a period not less than one month from the date of service at which the amendment is to be made and the Committee shall consider any objection made in this regard by any such person and the amended assessment list shall come into force with effect from the first day of April of the year in which notice was given to the person affected.]

 

1[68. (1) Preparation of new assessment list. – Where the assessment of land or building has been made on the basis of the annual value as specified in clause (i) of section 3, the assessment list will be valid for a period of five years and after the expiry of the period of five years, the annual value may be determined at the option of the owner either in accordance with the method specified in sub-clause (b) of clause (i) of section 3 or by increasing it by ten per cent of the annual value already fixed.  

(2)       In the case of land or building which is occupied by the tenant, the annual value may be revised when revision in the rent is made:

 

Provided that where no revision in rent is made and a period of five years have elapsed since the date of the previous assessment, the annual value may be enhanced for reasons to be recorded in writing and after hearing the landlord.]

 

2[68-A. Power to amend assessment list in certain cases.- (1) Notwithstanding anything contained in this Chapter, where the prescribed authority satisfied that any property has been erroneously valued or assessed through fraud, accident or mistake, whether on the part of the committee or of the assessed, it may, after giving to the assessee an on opportunity of being heard and after making such enquiry as it may deem fit pass an order amending the assessment already made and fixing the amount of tax payable for that property and on the issue of such an order the assessment list then inforce shall, subject to the order, if any, passed in appeal, be deemed to have been amended accordingly with effect from first day of January, or first day of April, or first day of July, or first day of October, next following the month in which the order is passed.

(2)             Any person aggrieved by an order of the prescribed authority may, within a period of thirty days of the date of communication to him of the order, file an appeal to State Government which shall decide the appeal after giving to the appellant an opportunity of being heard.]

 

GENERAL PROVISIONS

69.      Tax not invalid for defect of form. – No assessment and no charge of demand of any tax made under the authority of this Act shall be impeached or affected by reason of any mistake in the name, residence, place of business or occupation of any person liable to pay the tax, or in the description of any property or thing liable to the tax, or of any mistake in the amount of assessment or tax, or by reason of any clerical error or other defect of form; and it shall be enough in any such tax if the property taxed or assessed is so described as to be generally known; and it shall not be necessary to name the owner or occupier thereof.

 

70.      Power of the committee in regard to taxes: - (1) A committee may exempt, in whole or in part, for any period not exceeding one year from the payment of any such tax, any person who by reason of poverty may in its opinion be unable to pay the same, and may renew such exemption as often as may be necessary. 

(2)       A committee, by a resolution assessed at a special meeting and confirmed by the State Government, may -

(a)   provided that all or any persons may be allowed to compound for taxes imposed under sub-clauses (c), (d) and (e) of clause (1) an under clauses (2) and (3) section 61;

(b)   abolish, suspend or reduce in amount any tax imposed under the foregoing sections; or

(c)   exempt in whole or in part from the payment of any such tax, any person or class of persons or any property or description of property.

 

71.      Powers of the State Government in regard to taxes: - (1)           The State Government may be order exempt in whole or in part from the payment of any such tax any person or class or persons or any property description of property.

           If at any time it appears to the State Government on complaint made or otherwise, that any tax imposed under the foregoing sections is unfair in its incidence or that the levy thereof or any part thereof is injurious to the interests of the general public, it may require the committee to take within a specified period measures to remove the objection; and, if within that period the requirement is not complied with to the satisfaction of the State Government the State Government may by notification suspend the levy of tax or of such part thereof until the objection has been removed.

 

72.      Remission of tax on unoccupied immovable property: - (1) When any property assessed to a tax under 1[sub-clause (a) of clause (1) of section61.] which is payable by the year or by instalment, has remained unoccupied and unproductive or rent throughout the year or the period in respect of which any instalment is payable, the committee shall remit the amount of the tax or of the instalment, as the case may be: -

           Provided that no such remission shall be granted unless, notice in writing of the circumstances under which it is claimed has been given to the committee within the first month after the expiry of the period in respect of which it is so claimed.

 

(2)       When any such property as aforesaid -

(a)   has not been occupied or productive of rent for any period of not less than sixty consecutive days, or

(b)   consists of separate tenements, one or more of which has or have not been occupied or productive of rent for any such period as aforesaid; or

(c)   is wholly or in greater part demolished or destroyed by fire or otherwise; the committee may remit such portion(if any) of the tax or instalment as it may think equitable.

(3)       The burden of proving the facts entitling any person to claim relief under this section shall lie upon him.

(4)       For the purposes of this section neither the presence of a care-taker nor the mere retention in an otherwise unoccupied dwelling house of the furniture habitually used in it shall constitute occupation of the house.

(5)       For the purposes of this section a house shall be deemed to be productive of rent of let to a tenant who has a continuing right of occupation thereof, whether it is actually occupied by such tenant or not.

2[(6)    The enquiry necessary for a decision whether any relief shall be granted under this section shall be held by the Executive Officer who shall make such recommendation to the committee as he may deem proper:

Provided that the committee shall not grant any remission of tax unless such remission is recommended by the Executive Officer.]

 

73.      Duty of furnishing true information regarding liability to municipal taxation: - (1) Every person shall on the demand of an officer duly authorized by the committee in this behalf furnish such information as may be necessary in order to ascertain whether such person is liable to pay any municipal tax; and every hotel or lodging house keeper or secretary or a residential club shall also on demand made as aforesaid furnish a list of all persons residing in such hotel, lodging-house or club.

(2)       If any person so called upon to furnish such information omits to so or furnishes information which is untrue, he shall be punishable with fine which may extend to one hundred rupees.

3[(3)    It would be obligatory for the owner to inform the committee about rent being charged from the tenant and also about the increase in the rent by filing a statement in the manner prescribed.

(4)       In the event of the owner not giving the information as required under sub-section (3), the owner shall be liable to pay a penalty which may extend to the amount of the tax payable on land or building under sub-section (1) of section 61 of this Act.]

 

74.      Notice to be given to the committee of all transfers of title of person primarily liable to payment of property tax: - (1) whenever the title to or over any building or land of any person primarily liable for the payment of property taxes on such property is transferred the transferor 1[and the transferee] shall within three months of the registration of the deed of transfer if it be registered, or if it be not registered within three months of its execution, or if no instrument be executed of the actual transfer give notice  in writing of such transfer to the committee.

(2)             Every person primarily liable for the payment of a tax on any property, who transfers his title to or over such property, without giving notice of such transfer to the committee as aforesaid, shall, in addition to any other liability which he incurs through such neglect, continue liable for the payment of all such taxes from time to time payable in respect of the said property until he gives such notice, or until the transfer shall have been recorded in the committee’s books.

(3)             Wherever the title to or over any building or land has developed upon any person by inheritance, the heir shall within three months of the date of the death of the former owner give notice in writing of such inheritance to the committee.

(4)             But nothing in this section shall be held to diminish the liability of the transferee or heir for the said taxes or to affect the prior claim of the committee for the recovery of the taxes  due thereupon.

2[(5)    Whoever contravenes the provisions of sub-sections (1) and (3) shall, in addition to any other penalty which he incurs through such neglect, be punishable with fine which may extend to fifty rupee; and, in the case of a continuing breach, with a further fine which may extend to fifty rupee; and, in the case of a continuing breach, with a further fine which may extend to five rupees for every day after the first during which the breach continues.]

CASE LAW

           -Section 74 – Petitioner denies the ownership of the property for which property tax demand has been raised – Contention is that the property stood in the name of his sons who had purchased it from previous owners in 1965 – Held – Section 74 lays down that in case of transfer of property, both, the transferee as well as the Transferor are bound to inform the committee – Petitioner or his sons failed to inform the Committee about the transfer – Petitioner has not placed any of the previous notices on record for evidence in support of his claim – Petitioner is liable ot pay the tax.

 

1996 (3) ALL INDIA LAND LAWS REPORTER (410)

 

75.      Power of entry for the purpose of valuation or taxation: - The committee may authorize any person: -

(a)   after giving twenty-four hours’ notice to the occupier, or, if there be no occupier, to the owner, of any building or land, at any time between sunrise and sunset, to enter, inspect and measure any building for the purpose of valuation:

(b)   to enter and inspect any stable, coach-house or other place wherein therefore is reason to believe that there is any vehicle or animal liable to taxation under this Act or for which a licence has not been duly taken out.

 

76.      Power to examine article liable to octroi: - Every bringing or receiving with the octroi 3[or terminal] limits of any municipality any article on which octroi or 4[terminal tax] is payable shall when required by an officer duly 5[authorized by the State Government or the Committee] in this behalf and so far as may be necessary for ascertaining the amount of tax chargeable: -

(a)              permit that officer to inspect, examine, weigh and otherwise deal with the article, and

(b)             communicate to that officer any information and exhibit to him any bill, invoice or document of like nature which he may possess relating to the article.

 

77.      Power to search where octroi is leviable:  (1) If any person, bringing or receiving conveyance or package within the octroi or 1[terminal tax] limits of a municipality on which octroi or 2[terminal tax] is or is believed to be leviable, shall refuse, on the demand of an officer 3[authorized by the State Government or the committee] in this behalf, to permit the officer to inspect, weigh or otherwise examine the contents of the conveyance or package for the purpose of ascertaining whether it contains any articles in respect of which octroi or 4[terminal tax] is payable or shall refuse to communicate to that officer any information and exhibit to him any bill, invoice or document of a like nature which he may possess relating to the article, or with the intention of defrauding the committee or a lessee under section 83 shall communicate any such information which is false or exhibit any such bill, invoice or document of a like nature which is false, forged or fraudulent he shall be punishable with a fine which may extend to fifty rupees.

 

(2)       Any such person may demand that the conveyance or package or both as the case may be, shall be taken without unnecessary delay before 5[a member of the committee or the secretary] or a magistrate who shall cause the inspection to be made in his presence.

6[(3)    Without prejudice to the provisions of sub-section (1) in case of non-payment of any octroi on demand, the officer referred to in section 76 may seize any article on which the octroi is chargeable to satisfy the demand.

(4)       The committee or an officer authorized by it in this behalf may after the lapse of five days from the seizure and after the issue of proclamation fixing the time and place of scale, cause any property to seized, or so much thereof as may be necessary to be sold by auction to satisfy the demand including the amount of penalty with the expenses occasioned by the seizure custody and sale thereof, unless the demand including the amount of penalty and expenses are in the meantime paid:

Provide that by order of the officer authorized by the committee in this behalf, articles of a perishable nature which cannot be kept for five days without serious risk of damage may be sold the lapse of such shorter time as he may, having regard to the nature of the articles, think proper]

 

78.      Power to fix octroi or terminal tax limits and penalty for  evasion of octroi or terminal tax: - If 7[animals or articles] passing the octroi or 8[terminal tax] boundary of municipality are liable to the payment of octroi 9[terminal tax] then every person who 10[-causes or abets the introduction of or himself introduces or attempts to introduce within the said octroi or 11[terminal tax] boundary, any such 12[animals or articles] upon which payment of the octroi 13[or terminal tax] due on such introduction has neither been made nor tendered, shall be punishable with fine which may extend either to 1[twenty] times the value of such octroi or 2[terminal tax] or to fifty rupees, whichever may be greater.

           3[…..]

4[78-A. Extension of taxation limits by agreement: (1) When a committee, with the sanction of the State Government has agreed with a Cantonment Authority 5[….] or 6[The Committee of] an area notified under section 241 that in consideration of the payment of a lump sum or otherwise the same limit of octroi or terminal tax or any toll or tax shall be established for the contracting parties, the committee may fix limits under section 188 so as to include so much of the area controlled by the said contracting parties as it may deem necessary, and shall have the powers of collecting such toll or tax or octroi or terminal tax on animals or articles brought within the such limits, and the provisions of the Act for the assessment and collection of such tax or tool or terminal tax shall apply in the same way as if the said limits were wholly comprised in the area of the municipality.

 

(2)       The total of the proceeds of such taxes or tools made, in the joint area of the municipality and Cantonment 7(---) or notified area and the cost thereby incurred shall be apportioned between the municipal fund and the fund subject to the control of the Cantonment Authority 8[---] or notified area in such proportion as shall have been determined by the agreement.

 

978-B. Taxation on articles exported: - When terminal tax is leviable on animals or articles conveyed out of the terming tax limits the provisions of sections 76, 77, 78 and 78-A shall he deemed, so far as may be, to apply in respect of the animals or articles so conveyed.

 

79.      Taxes when payable: - Subject to provisions of sections 62(7) and (8) and 66 any tax imposed under this chapter and payable periodically shall be payable on such dates and in such instalments (if any) as the committee, with the previous sanction of the Deputy Commissioner may from time to time direct. 

 

80.      Recovery of taxes payable by owner: - (1) When any sum is due on account of a tax payable under this Act in respect of any property by the owner thereof the committee shall cause a bill for the amount, stating the property and the period for which the charge is made to be delivered to the person able to pay the same.

 

(2)       If the bill be not paid within ten days from the delivery thereof the committee may cause a notice of demand to be served on the person liable to pay the same, and if he does within seven days from the service of the notice, pay the sum due, with any fee leviable for the notice, or show sufficient cause for non-payment the sum due with the fee shall be deemed to be an arrears of tax.

(3)       10[Any sum due or the amount of tax payable under this Act] for the words besides being recoverable in any other manner provided this Act; shall, subject to any claim on behalf of Government be a first charge on the property, in respect of which it is payable, and shall be recoverable; on application made in this behalf by the committee to the Collector, as if the property were an estate assessed to land revenue and the arrears were an arrears of such revenue the thereon;

Provided that nothing in this sub-section shall authorize the arrest of a defaulter.

(4)       I f any tax or sum leviable under this Act from the owner is recovered from the occupier, such occupier shall, in the absence of any contract to the contrary, be entitled to recover the same from the owner and may deduct the same from the rent then or thereafter due by him to the owner.

- Sections 80(2) and 62 – Appeal by Municipality against quashing of assessment of house-tax- Held - Municipality was not competent to assess house-tax on the basis of the contractual rent between the landlord and the tenant.

 

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