J.V. Gupta, J. - (1.) This judgment will dispose of the present Latter Patent Appeal No. 86 of 1986 and a bunch of connected Latter Patent Appeal No. 148 of 1986 and Civil Writ Petitions No. 5487, 5488, 5578, 5529 and 5530 of 1989, as common question of law and fact is involved in all these cases.
(2.) The pertinent question to be decided in all these cases is as to whether the residential houses constructed at Nangal Township by the Bhakra Beas Management Board (For short the Board) for providing residential accommodation to its officers, staff and workers constitute one building for the purpose of house tax under the Punjab Municipal Act, 1911 (for short the Act) or they are to be assessed as separate houses.
(3.) The Board is a statutory body and is under the control of the Central Government. It owns a number of residential houses which were constructed at Nangal Township for providing residential accommodation to its officers, staff and workers employed in the power Houses. There are 10 types of houses ranging from Superintending Engineer to Peon and Mate. Each bungalow and quarter has separate boundary wall and is a compact unit with distinct and separate identity mark/house number is allotted to each officer, staff or worker. Each bungalow or quarter was being assessed at separate standard rent worked out according to the rules applicable to Punjab Government buildings of similar nature. However, the Notified Area Committee, Nangal (for short the Committee) issued a bill of house tax dated 22nd January, 1979 for the year 1978-79, amounting to Rs. 19663.87. In this bill, the Committee had clubbed quarters or bungalow which adjoin each other and from outside looked like a compact building and in this manner, calculated annual rental value and assessed the house tax. The Board filed objections against the assessment of the house tax. It was pointed out therein that a building having annual rental value not exceeding Rs. 840/- was exempt from tax and that most of the quarters whose rental value did not exceed Rs. 840/- were exempt from tax. It was also pointed out that certain building had rental value above Rs. 840/- but not exceeding Rs. 1800/- and, therefore, 12-1/2% tax could be imposed, whereas 15% was imposed which could be imposed on premises, the annual rental value of which exceeded Rs. 1860/-. However, this did not find favour with the assessing authority. The Board filed an appeal before the Deputy Commissioner who also dismissed the same vide order dated 31st August. 1979 (Annexure P/2). According to the Deputy Commissioner, the Committee should assess the house tax considering each block as a separate unit. It was also held that the key word 'building' meant a compact building which is physically separate and distinct from another building, even if it has been provisionally sub divided into a number of independent units and sublet to different persons.;