R.M.LODHA, J. - (1.) THE State Government and the authorities of the Land and Building Tax Department have filed this writ petition under Articles 226 and 227 of the Constitution of India challenging the orders dated 19.7.1996 and 28.10.1998 passed by the Rajasthan Taxation Tribunal, Jaipur.
(2.) THE controversy arises from the facts and circumstances which may be briefly noticed by us immediately. (i) M/s. Bharat Petroleum Corporation Ltd. (for short, 'Bharat Petroleum') is owner of diverse flats being flat Nos. 103, 104,204,303,304, 402, 403 and 404 in the building known as 'Kamal Apartment' situate at Ram Mandir, Near Old Power House, Banipark, Jaipur. The Assessing Authority, Director Land and Building Tax passed an assessment order on 1.12.1990 assessing the aforesaid flats having market value of Rs. 28,70,700/ -. After deducting a sum of Rs. 1 lac from market value at which no tax was payable, the assessing authority held the taxable market value of the aforesaid flats at Rs. 27,70,700/ - and determined tax at Rs. 26,060/ -. (ii) On 15.4.1991,the Director, Land and Building Tax issued a Circular that the flats in multi -storied buildings should be assessed in accord with the said Circular by treating the flats at one floor as one unit. (iii) In the light of the said Circular dated 15.4.1991, a rectification order came to be issued by the assessing authority under Section 22A of the Rajasthan Lands and Buildings Tax Act, 1964 (for short, 'LBT Act') in respect of the aforesaid flats owned by Bharat Petroleum on 27.7.1991. By rectification order, the assessing authority treated the petitioners' flats in 'Kamal Apartment' in four units on the basis of the Circular dated 15.4.1991. On the basis of total market value of all the units as on 1.4.1989, the land and building tax was determined. (iv) Dissatisfied with the order dated 27.7.1991, Bharat Petroleum preferred revision petition before the Divisional Commissioner, The Revisional Authority did not find any infirmity in the rectification order of the assessing authority dated 27.7.1991 and consequently by his order dated 16.12.1991, dismissed the revision petition. (v) Bharat Petroleum then filed writ petition before this Court which on the establishment of the Rajasthan Taxation Tribunal, was transferred there. The Tribunal set -aside the Circular dated 15.4.1991 and so also the orders of Revisional Authority and the Assessing Authority and remanded the matter back to the Assessing Authority for passing fresh assessment order by treating the each flat as an independent unit vide its order dated 19.7.1996. (vi) A review petition was filed by the present petitioners before the Tribunal seeking review of the order dated 19.7.1996, which came to be dismissed on 28.10.1998. The LBT Act has been enacted by the Rajasthan State Legislature under Entry 49 of List -II of Seventh Schedule of the Constitution of India. Entry 49 reads thus: Taxes on lands and buildings.
(3.) IT is permissible under Entry 49 of List -II to levy a tax on land as well as building or on lands or on buildings. It is now well settled that the levy of tax, pursuant to an Act enacted under Entry 49 of List -II, is on the property and not on a person. That the State legislature has competence to impose tax either on lands or on buildings or on both is not in doubt. The legislative competence, latter, is unassailable where tax is imposed either on lands or on buildings or on both as it gets sanction from Entry 49 of List -II of Seventh Schedule.;