- (1.) The legality and validity of the order amending the assessment list in respect of its property by the Municipal Committee. Sangrur in the State of Punjab is under challenge in this appeal filed by the Food Corporation of India (hereinafter referred to as 'the Corporation').
(2.) The assessment in question relates to a godown described in the notice as "property unit. No. 239-Block No. 1 situated within the local limits of the Municipality". By notice No. 110/HP dated 27-6-1991 issued under Section 67 of the Punjab Municipal Act, 1911 (for short 'the Act') the Municipal Committee intimated the Corporation that it intends to amend/revise the assessment in respect of its property and if the Corporation has any objection it may file the 'same along with documentary proof in support, within a month'. The relevant portion of the notice is extracted here-under : "To The Distt. Manager, Food Corporation of India, Jakhal Road, Sunam. Property Unit No. 239 Block No. 1 Which is situated in the Municipal limits Sunam, in connection with which you are hereby informed vide this notice that the amendment in the assessment of your this property is liable to be done necessarily due to the following reasons and is done as under :- Whereas your above mentioned property has wrongly been left out from the assess-ment list whereas it should be/should have been in the same. 2. Whereas the assessment of this property of yours was assessed less due to inadvertent mistake/fraud or intention, which needs amendment thereby. Therefore, vide this notice you are hereby informed that your above mentioned property i.e. house/shop/plot along with office, godowns and quarters, the assessment of the same is being amended due to the aforementioned reasons w.e.f. the year 1986-87 as per details mentioned hereunder and the new assessment is fixed as below. Any objection in this behalf may be given in writing along with the documentary proofs in support of the same within one month from today. Property Unit No. House Ward No. Name of the Owner of the property Name of tenant if any Annual assessed rent after deducting 10% Tax assessed 15% Note - The differential house tax in respect of the years will be recovered from you after allowing the tax paid 1. Godown of food grains, capacity 206656 bags @ 20 paise per bag per month. 493972.00 69373/15 paise/ P.A. 2. Pedestals outside for 28790 bags @ 08 paise per bag per month 2303.00 3. Quarters of class IV employees attached 3600.00 4. Weigh Bridge 4000.00 5. Office two sets 8000.00 313875.00 4% Maintenance 51387.50 462487.50 Earlier given notice No. PMA under Section 67 and No. 654/HT dated 2-1-91 is hereby recalled and this new notice is issued accordingly. Sd/- Executive Officer, Municipal Committee, Sunam"
(3.) In reply to the notice the Corporation denied that any additional tax liability should be imposed on it in respect of the property since the godown in question has already been assessed to property tax, that no addition/alteration has been made in the building/godown after finalisation of the last assessment therefore, no revision of the tax is required to be made. The Corporation also questioned the validity of the revision of tax with retrospective effect from 1986-87. The Corporation also denied the statement in the notice that the capacity of its godown is 2,06,656 bags and not 1,84,000 bags on the basis of which the previous assessment was finalised. The Corporation drew the attention of the Municipal Committee that the notice containing a similar proposal for revising the property tax in respect of the same property on same grounds had been issued previously and on receipt of the objection of the Corporation the said notice was withdrawn.;