SURENDRAN Vs. DISTRICT COLLECTOR

JUDGEMENT

(1.) The Judgment of the Court was delivered by Ramachandran Nair, J.- This appeal is filed against the judgment of the learned Single Judge holding that there is no bona fides in appellant's dispute against the plinth area assessed for the purpose of luxury tax because the appellant, without contest, remitted the building tax for the entire plinth area assessed.

(2.) We have heard learned counsel appearing for the appellant and the Government Pleader appearing for the respondents.

(3.) While building tax is a one time liability, luxury tax is a liability payable every year if the residential building, constructed after 1-4-1999, has a plinth area of 278.7 Sq.metres and above. A little difference in plinth area assesed for payment of one time building tax may not be contested by the building owner because compared to the cost of dispute, the disputed tax may be less. However, this should not stand in the way of the building owner contesting recurring liability for luxury tax if he is otherwise not liable. Therefore, in our view, when demand on luxury tax is raised, the building owner is free to contest the liability if the plinth area assessed is excess over the actual, no matter he has without contest paid the building tax on such wrong plinth area originally assessed.