D.P.F. TEXTILES PRIVATE LTD. Vs. THE TOWN PANCHAYAT VELLAKINAR

JUDGEMENT

(1.) This appeal is preferred by the D.P.F. Textiles, Private Limited, Coimbatore, against the judgment of a single Judge of this Court in Writ Petition No. 2982 of 1969. The only question that was raised by the learned counsel, Mr. R.G. Rajan, is that the Panchayat in question is not competent to levy the house tax on the basis of annual rental value. The facts that are necessary for the purpose of this case may be set out. The appellant was assessed to a tax of Rs. 989 -55 p for the period from the second half -year of 1956 to the first half year of 1961 -62. For the second half -year of 1961 -1962, the assessment was increased to Rs. 2882 -25p. The appellant filed a suit O.S. No. 734 of 1962 in the District Munsif's Court, Coimbatore, in which the assessment was reduced by 10 per cent. On appeal, the appellant succeeded and the extra levy was set aside and the judgment of the appellate Court was confirmed in Second Appeal No. 177 of 1966. For the year 1964 -65 the Panchayat levied a tax of Rs. 5,938 -45p., but it was subsequently reduced to Rs. 1,979 -10 p. From the year 1956 to the year 1964 -65, the basis of the levy of the house tax was on the capital value of the building. In the year 1967, the panchayat adopted only the annual rental value as the basis and on 17th October, 1967, fixed the tax payable by the appellant for the year as Rs. 15,720. An appeal to the Town Panchayat failed and the tax at Rs. 15,720 was confirmed.

(2.) Aggrieved at this order, the appellant challenged the levy before this court by way of a writ petition. The main contention raised by the appellant before the learned single Judge was that the Panchayat acted beyond its powers in adopting the annual rental value as the basis of the tax. The other two questions that were raised by him were that the Panchayat did not apply its mind to the directions given by the authorities when it adopted the annual rental value, and therefore, the levy was illegal. It is unnecessary to refer to the second contention or to the other contention as the learned counsel confined himself only to the question as to the power of the Panchayat to adopt the annual rental value for fixing the house -tax payable by it.

(3.) In order to appreciate this contention, Ss.63 and 64 of the Madras Act X of 1950 may be referred to. S.63 empowers every Panchayat to levy in the village a house -tax, a professional tax and a vehicle tax. S. 64 (1) provides that the house -tax referred to in S.63 (1) shall be levied on a house in the village on any one of the following basis, viz., (a) annual value, (b) capital value or (c) such other basis as may be prescribed. As Ss. 63 and 64 of Act X of 1950 stood, there could be no doubt that the Panchayat could levy the tax on any one of the three basis viz., on annual value, capital value or such other basis as may be prescribed. When Madras Act XXXV of 1958 was passed, S.120 (1) was enacted, which runs as follows: