Dharmadhikari, J. - (1.) The present appeal along with other connected appeals is on the question of validity and proper interpretation of impugned provisions of Calcutta Municipal Corporation Act 1980 (hereinafter referred to as the Act for short), which are contained in Part IV Chapter XII under the Heading "Powers of taxation and Fixation of Consolidated Rates.
(2.) The three Judges Special Bench of the High Court of Calcutta on a reference made by the Division Bench of the said Court, on the validity and interpretation of the impugned provisions of the Act relating to taxes on property has delivered a common judgment in different writ petitions, which has been assailed by tenants, sub-tenants and landlords by separate appeals which are being decided by this common judgment. It is not in dispute that the State Legislature is competent to make a law conferring authority on the local bodies to impose property tax to generate revenue for providing civic amenities like supply of water, drainage, sewerage, collection, removal and disposal of solid waste, fire prevention and fire safety, maintenance of streets and public places and other allied services in the municipal areas where lands or buildings are situated. A brief survey of the history of the legislation is necessary.
(3.) The repealed Act i.e. Calcutta Municipal Act of 1951 levied equal tax on owner and occupier of the lands and buildings within the municipal area. It provided for issuance of two separate Bills where the premises are occupied only by the tenant. The occupants share of tax was collected from the tenant as the occupiers Bill. However, in the case of premises having more than one occupier, the 1951 Act had provided that the taxes under both the Bills i.e. the owners and the occupiers bill, would be paid by the owner, but in turn, he was competent to collect half of the total taxes paid i.e. occupiers share proportionately from each occupier. The taxes were charged on the rent payable and the rate was also low. The working of the above provision of the Act of 1951 resulted in development of a system where the occupiers share of tax was included in the rent by the owner and both the shares were paid by the owner to the municipality instead of owner paying the taxes and then pursuing remedies against the tenants for collection of the portion of tax imposed by the Act on the tenant or occupier.;