Sabyasachi Mukharji, J. - (1.) In this judgment I am dealing with several applications under Article 226 of the Constitution, two in the original side and one in the appellate side as these raise the common and the important question of the validity of West Bengal Multi-storeyed Building Tax Act, 1975 being West Bengal Act XIX of 1975 as amended by West Bengal Act XX of 1977. In all these applications several points were taken. But as the most important question raised in these applications was the validity and the vires of the West Bengal Multi storeyed Building Tax Act, 1975 as amended by the Act of 1977 it is necessary to set out the relevant provision of the said Act. The West Bengal Multi-storeyed Building Tax Act, 1975 hereinafter called the 1975 Act, came into effect from 1st of July, 1975 with the prior assent of the President of India. The rules made thereunder were framed by notification dated 21 st of August, 1975. Under Section 3 of the Act as the Act stood originally the rate of tax had been provided at Re. 1/- per sq. metre of covered space of multi-storcyed building per year. Section 2(c) of 1975 Act, which defined Multi-storeyed Building was as follows:- "Multi-storeyed building" means a building on any land in an urban area consisting of five storeys and above constructed after the first day of April 1969 and includes any building in such area with less than five storeys constructed prior to that date but raised after that date to a level of five storeys and above." The expression Urban area has been defined to mean "such area as the State Government may by notification declare to be an Urban area for the purpose of this Act." Under Section 3(2) of the 1975 Act, the tax is payable by the owner who is defined as follows:- "Owner includes the person for the time being receiving the rent of any multi-storeyed building or any part thereof whether on his own account or as agent or trustee for any person or society or for any religious or charitable purpose, or as a receiver or, who would so receive such rent if the multi-storeyed building or part thereof were let to a tenant". The 1975 Act as mentioned hereinbefore was amended in 1977 by the West Bengal Taxation Laws 2nd Amendment Act, 1977, the Governor of West Bengal gave his assent to the said Act, and the same was published in the Calcutta Gazette Extra-ordinary on the 30th of September, 1977. In the case of 1977 amendment no assent to the President was obtained. The 1975 Act after its amendment provides that this is an Act for the imposition of tax on multi-storeyed buildings in West Bengal. It extends to the whole of West Bengal. Section 2(b) defines covered space as follows:- "(b) 'covered space' means the floor space and includes the space of covered, courtyard, gangway, garage, verandah, common service area and such other space as may be prescribed Multi-storeyed building has been defined under Section 2(c) as follows "(c) 'multi-storeyed building' means a building on any land in an urban area consisting of five storeyes and above." Urban area has been defined in Section 2(h) as follows:- "(h) 'urban area' means such area as the State Government may, by notification, declare to be an urban area for the purposes of this Act." Section 3 which deals with the levy of tax is to the following effect:- 3. Levy of tax.-(1) Notwithstanding anything to the contrary contained in any other law 'for the time being in force but subject to other provisions of this Act, there shall be charged and levied for every year a tax (hereinafter referred to as 'the tax') on every multi-storeyed building. (2) The tax in respect of a multi-storeyed building shall be payable by the owner thereof to the State Government. (3) The tax shall be levied per year or part thereof on the covered space of the multi-storeyed building at the rates specified below ; JUDGEMENT_45_LAWS(CAL)3_1979_1.html Explanation.-For the purposes of this Act- (a) 'commercial use' means the use of any multi-storeyed building or part thereof for the purpose of carrying on-any trade or business or for running an office in relation thereto ; (b) 'industrial use' means the use of any multi-storeyed building or part thereof for carrying on any manufacturing process as defined in the Factories Act, 1948" ; (4) The tax shall not be levied on the following multi-storeyed buildings, namely:- (a) multi-storeyed buildings owned by the Central Government, the State Government, Government of any other State or any local authority; and (b) multi-storeyed buildings situated within the area to which _the provisions of the Cantonment Act, 1924 (2 of 1924) apply. (5) The State Government may, by notification, exempt from the payment of the tax- (a) any multi-storeyed building or part thereof constructed by the Department of Housing of the Government of West Bengal or the West Bengal Housing Board, the Trustees for the Improvement of Calcutta or/any other Statutory Body, comprising apartments, flats and tenements for sale or allotment to persons whose annual income does not exceed rupees twelve thousand, (b) any multi-storeyed building or part thereof owned by any diplomatic or consular mission of a foreign State, or (c) any multi-storeyed building or part thereof used for the purpose of any school, college or other educational or public charitable institution, hospital or dispensary. Section 3A is to the following effect : "3A. Computation of amount of covered space.-In computing the amount of covered space of the multi-storeyed building of any owner for the purpose of assessment, there shall be included all covered space of any such building as may be owned by the spouse or minor children of such owner". The other provisions deal with the taxing authority, manner of payment, penalty for default, the mode of recovery of tax and penalty, production and inspection of accounts and documents, power to enter and inspect, for penalty and for delegation and the power to make rules. It is not necessary, in my opinion, for the consideration of the contentions raised in these applications to consider these provisions. The rules are also not very rel#vant for my present purpose.
(2.) In considering the various contentions that have been raised in this case I may briefly refer to the facts relevant for my present purpose involved in these writ applications with which I am concerned now. In matter No. 115 of 1978 the petitioner is the State Bank of India, a body corporate incorporated under the State Bank of Tndia Act, 1955. It states that the said petitioner is the owner of two multi-storeyed buildings in Calcutta within the jurisdiction namely, premises No. 1, Strand Road, Calcutta and premises No. 4A, Ronaldshay Road, Calcutta. A portion of premisies No. 1, Strand Road which forms part of the original premises No. 1, 2 & 3 Strand Road, Calcutta consists of an eight storeyed building. The first to six storeys of the said premises were completed by the month of February 1962 and the remaining storeys' were completed by the month of July 1968. The total covered space therein including the common service areas is 7091 sq. metres. According to the petitioner, the said building is used for its own office accommodation. The municipal taxes payable in respect of the entire premises including the said multi storeyed building is Rs. 34,562.58 paise per quarter or Rs. 1,38,250.32 per year. The petitioner states that having regard to the area of its covered space the tax payable under the said Multi storeyed Building Tax Act 1976 as amended in 1977 would be Rs. 53,182.50 (7091 sq. metre by Rs. 7.50 per sq. metre). The petitioner, further, states that in view of housing shortage the petitioner in pursuance of the housing scheme of its employees acquired and constructed a multi-storeyed building at premises No. 4A, Ronaldshay Road, Calcutta. The said premises No. 4A, Ronsldshay Road is an eleven storeyed building of which construction was completed by June, 1965. The total covered space in the said building including the common service area is 3941.12 sq. metres. The building consists of entirely residential flats which arealloted to officers on duty at Calcutta of the petitioner bank by way of free furnished quarters No portion of the said building is used for any commercial or industrial purposes or use. The municipal taxes payable in respect of the said building is Rs. 7,154.88 p. per quarter or Rs. 28,619.53p. per year. Apart from such municipal tax having regard to the area of its covered space the tax payable under the Multi-storeyed Building Tax Act 1975 as amended in 1977 would be Rs. 19,705.60 p. (3941.12 sq. metres at Rs. 5 per sq. mqtre).
(3.) So far as the facts in matter no. 116 of 1978 are concerned the said application is by the State Bank of India, Senior Supervising Staff Co-operative Housing Society Ltd. a body corporate registered under the Bengal Co-operative Societies Act of 1940, and one Bhowani Prasad Chatterjee, member Secretary of the State Bank of India Senior Supervising Staff Co-operative Society. The petitioner no. 1 in the said application is the owner of one multi-storeyed building in Calcutta being premises no. 82/9, Ballygunge Place, Calcutta. The petitioner states that in view of the housing shortage in pursuance of the Housing Scheme for its members the petitioner no. I acquired and constructed a multi-storeyed building on premises no. 82/9, Ballygunge Place, Calcutta. The said premises is a twelve storeyed building of which construction was completed by 1972. The total covered space in the said building including the common service area is 3018.40 sq. metres. The building consists entirely of residential flats which are allotted to the members of the petitioner no. 1. No portion of the said building is used for any commercial or industrial purposes. The municipal tax payable in respect of the said building is Rs. 4,472.04 paise per quarter or Rs. 17,888.16 per year. Apart from such municipal tax the petitioner has to incur various expenses on account'of maintenance, repairs providing for common services etc. which in the year 1977 amounted to about Rs. 54,000/-. The said premises consists of 22 flats of which five are being said by its members and out of the remaining flats 5 are let out to the State Bank of India and 12 flats to outsiders since the construction of the building in the year 1972. Having regard to the area of its covered space the tax payable under the Multi storeyed Building Tax Act 1975 as amended in 1977 would be Rs. 19,705.60 (3,941.12 sqS metre at Rs. 5/- per sq. metre) per year. However, in respect of the year 1977-78 the said tax payable according to the petitioner would be about Rs. 11,823.36. These are the relevant facts for these two applications.;