Arun Kumar, J. - (1.) The question for consideration in this appeal is regarding maintainability of a civil suit to challenge assessment and levy of property tax on a property owned by Respondent. Respondent owns a basement in Property No. 33, Prithvi Raj Road, New Delhi. The appellant is a statutory body responsible for discharging civic functions in specified areas in the city of Delhi. To generate revenue for itself the appellant is authorized to levy taxes including property tax. The said property was assessed to property tax by the appellant. According to respondent the basement cannot be put to use because it gets filled up with sub-soil water. For this reason the respondent claimed that the basement could not be said to be having any annual rateable value and therefore it could not be assessed to property tax and no tax could be levied. Inspite of this, the appellant assessed the said property to property tax. It was further alleged by the respondent that objections filed by him against the assessment of the said property to property tax had been rejected by the appellant and a notice of demand had been sent regarding arrears of property tax. This demand included arrears for certain earlier period even though the same had been stayed by civil Court in separate proceedings. Respondent filed a suit for permanent injunction stating that the action of the appellant in assessment of the said property to property tax and demanding arrears of tax amounting to Rs. 4,293.35 (Rupees Four thousand two hundred ninety three and paise thirty five) on this account was illegal and without jurisdiction. He made a prayer for a permanent injunction restraining the appellant from recovering the said amount.
(2.) The appellant took a preliminary objection against the maintainability of the said suit. The objection is based on Sections 84 and 86 of the Punjab Municipal Act, 1911 (hereinafter referred to as "the Act"). The NDMC at the relevant time was constituted under the said Act and assessment and levy of property tax was a function carried on by NDMC in accordance with the provision of the said Act. Sections 84 and 86 of the said Act are reproduced as under : "84. Appeals against taxation- (1) An appeal against the assessment or levy of any or against the refusal to refund any tax under this Act shall lie to the Deputy Commissioner or to such other officer as may be empowered by the State Government in this behalf : Provided that, when the Deputy Commissioner or such other officer as aforesaid, is, or was when the tax was imposed, a member of the committee, the appeal shall lie to the Commissioner of the division. (2) If, on the hearing of an appeal under the section, any question as to the liability to, or the principle of assessment of, a tax arises, on which the officer hearing the appeal entertains reasonable doubt, he may, either of his own motion or on the application of any person interested, draw up a statement of the facts of the case and the point on which doubt is entertained, and refer the statement with his own opinion on the point for the decision of the High Court. (3) On a reference being made under sub-section (2), the subsequent proceedings in this case shall be, as nearly as may be, in conformity with the rules relating to references to the High Court contained in Section 113 and Order XLVI of the Code of Civil Procedure. (4) In every appeal the costs shall be in the discretion of the officer deciding the appeal. (5) Costs awarded under this section to the committee shall be recoverable by the committee as though they were arrears of a tax due from the appellant. (6) If the committee fail to pay any costs awarded to an appellant within ten days after the date of the order for payment thereof, the officer awarding the costs may order the person having the custody of the balance of the municipal fund to pay the amount. 86. Taxation not to be questioned except under this Act- (1) No objection shall be taken to any valuation or assessment, nor shall the liability of any person to be assessed or taxed be questioned, in any other manner or by any other authority than is provided in this Act. (2) No refund of any tax shall be claimable by any person otherwise than in accordance with the provisions of this Act and the rules thereunder."
(3.) Section 84 contains a provision regarding appeals against assessment and levy of taxes which means that a remedy of a statutory appeal is provided to a party aggrieved of assessment and levy of tax under the Act. When a Statute provides a remedy of appeal it is a remedy governed by the Statute and has to be exercised strictly in accordance with the statutory provisions. Section 86 contains a bar against challenge to any valuation or assessment for purposes of tax including property tax except in accordance with remedy contained in the Act itself. Section 86 further debars any person from questioning the liability towards tax based on assessment by the authorities under the Act by any manner other than what is provided in the Act itself. Thus Section 86 of the act contains a total bar against availing any remedy against assessment and or levy of tax except as per the provision of the Act itself. On the basis of these provisions contained in the Act it was pleaded on behalf of the appellant that the suit was not maintainable and was therefore liable to be dismissed. The trial Court upheld the objection regarding maintainability of the suit and the suit was accordingly dismissed. However, appeal against said judgment was allowed by the Senior Civil Judge. On the question of maintainability of the suit, the lower appellate Court by distinguishing the relevant judicial pronouncements on the issue, came to a conclusion that the suit was maintainable. The High Court dismissed the second appeal in limine. This has led to filing of the present appeal.;