Hemant Gupta, J. - (1.) THIS order shall dispose of aforementioned three applications for vacation of an ex parte order dated 06.04.2011. Vide the said order, Letters Patent Appeals against the order passed by the learned Single Judge of this Court on 24.09.2010 were admitted and the operation of the said order was stayed.
(2.) IN CWP No.6651 of 2007, the petitioner challenged notification dated 22.11.2004 (Annexure P -8) and the impugned bills dated 01.04.2008 and 01.04.2009, whereby the Property Tax was levied on commercial, industrial and institutional lands and buildings in Chandigarh. In brief, the contention of the writ petitioner is that there is no resolution of the Municipal Corporation to levy tax on institutional lands and buildings, therefore, notification dated 22.11.2004 is without jurisdiction and is not in compliance with the provisions of the Punjab Municipal Corporation Act, 1976, as extended to U.T. Chandigarh. It is the said argument, which has found favour with the learned Single Judge. Mr. Sarin, learned counsel for the applicant has argued: (i) that the order of stay of the impugned judgment is ex parte and such ex parte order should not be granted in view of the judgment reported as Balwant Singh and others Vs. Mood Chand and others : AIR 1971 SC 129; (ii) that the Division Bench while admitting the writ petition has stayed the impugned notification, therefore, after the writ petition has been allowed, the writ petitioner cannot be made liable to pay tax, when tax not payable by the writ petitioners during the pendency of the writ petition; (iii) that the judgment of learned Single Judge is exhaustive, therefore, by virtue of short order, the benefit of judgment cannot be denied to the writ petitioners; (iv) that if the writ petitioners are made to pay tax on the lands and buildings, it will amount to undue enrichment of the State, as the tax has to be collected from the numerous students, which cannot be refunded to them in the event the appeals are dismissed; (v) that during pendency of the appeal, the respondent should not be called upon to pay huge amount of tax. Reliance is placed upon M/s Polar Industries Ltd. Vs. The Commissioner of Central Excise, Meerut and others, AIR 2000 SC 3503; and (vi) lastly, it is submitted that appeal itself be heard at an early date. The learned Single Judge held that the draft bye -laws approved by the Municipal Corporation in its Meeting held on 29.01.2003 were considered by the Committee consisting of Secretary, Local Government; Commissioner, Municipal Corporation, Chandigarh and the Legal Remembrancer. The Commissioner, Municipal Corporation was asked to rectify the bye -laws for consideration of sub committee by modification of the heading to cover tax on commercial, industrial and institutional lands and buildings. It was thereafter, modified building bye -laws along with self -assessment scheme ware approved by the Administrator under Section 401 of the Punjab Municipal Corporation Act as applicable to Chandigarh (for Short "the Act"). In the self -assessment scheme, the word "institutional buildings" was defined for the first time such as the schools and that in the absence of word "institutional land" in the resolution, the notification issued in exercise of the powers under Section 90(3) of the Act is not tenable.
(3.) CLAUSE 9 of the Agenda is in respect of rates of taxes if self -assessment is opted. Note 1 appended to Clause 10 is to the effect that Group V will cover buildings/sites other than SCOs, SCFs or Booths, which have been allocated for a specific purpose/trade i.e. Cinema Houses, Private Schools/Colleges, Theatres, Barat Ghars & Marriage Palaces etc. The rate proposed was Rs.14 per sq. foot. Such Agenda was considered in 61st Meeting of the Municipal Corporation held on 29.01.2003 and it was resolved to levy tax on all commercial lands and buildings including industrial units, residential houses used for commercial purposes. It was further resolved that levy of house tax on residential lands and buildings used for residential purpose is dropped.;