- (1.) By way of this order we shall decide CWP No. 3318 of 1995 and 5577 of 2002 as they involve adjudication of the same question. For the sake of convenience facts are being taken from CWP No. 3319 of 1995. The Food Corporation of India is before us praying for issuance of a writ of certiorari quashing orders dated 10.12.1993 and 31.8.1994 Annexures P-6 and P-8 respectively.
(2.) Counsel for the petitioner submits that as the petitioner is an instrumentality of the Union, its properties are exempted from payment of house tax etc. The levy of service charges, by the Municipal Committee now Municipal Corporation is without jurisdiction as the Municipal Committee did not provide Municipal services like electricity, water, goods etc. and therefore cannot levy "service charges", much less by reference to circulars issued by the Central Government, which even otherwise envisage payment of "service charges" for only such services as are provided by a Municipal Committee. A perusal of the assessment order as well as the order passed by the Appellate Authority reveals that both authorities have calculated "service charges" without reference to services to be provided by a Municipal Committee. The annual value has been calculated, at Rs. 3 crore, on the basis of rates furnished by the CPWD, but without associating the petitioner, or dealing with its objections and without following the formula set out in circular dated 24.3.1967 (Annexure R-2) as well as the definition of annual value, contained in Section 3(1)(b) of the Punjab Municipal Act, 1911, as applicable to the relevant assessment year.
(3.) Counsel for the Municipal Committee, now Municipal Corporation, Patiala submits that the Central Government issued circular dated 10.5.1954, directing that as Central Government properties are exempted from payment of property tax they shall be required to pay "service charges", to local bodies. The circular was followed by circular dated 24.3.1967 which sets out the mode and manner for calculating annual value, and service charges. The assessing authority as well as the appellate authority have assessed service charges in accordance with circulars, Annexure R-1 and R-2. The value of the building has been assessed on the basis of information supplied by the CPWD. The petitioner's contentions that no services are provided or that the annual value of the building, has been wrongly assessed, are unfounded. It is also contended that the impugned order does not violate any circular or any provision of the Punjab Municipal Act, 1911.;