The Kerala High Court Ruled that the petitioner is liable to Pay Property Tax after issuance of occupancy certificate.
Facts
The writ petition is filed under Section 226 of the Constitution of India impugning the demand notices. The facts of the writ petition are not in dispute. The building for which the impugned demand notices have been issued is a multi storied apartment constructed by the petitioner. The completion certificate was issued in respect of the said building on 19th Feb 2015. However, the occupancy certificate was issued only on 01.02.2017 by the respondent Municipal Corporation. The impugned demand notices are in respect of the property tax for the period from 1st October 2014 to 28th February, 2017.
Submissions
Counsel for the petitioner submitted that the petitioner is not liable to pay the property tax before issuance of the occupancy certificate, which is on 1st February 2017.
He submitted that only on issuance of the occupancy certificate, the building is numbered, and electricity, water and gas connections are provided, and thereafter, the building can be used for residential purposes.
Counsel for the respondent submitted that the petitioner himself delayed issuance of the occupancy certificate.
Decision
The single judge bench of Justice Dinesh Kumar Singh observed that if subsection 2 (a) of Section 233 is read in proper perspective, it could mean that the tax can be levied on the building which becomes capable of use for residential purposes or other purposes which is defined under Subsection 2(a). It is not in dispute that without occupancy certificate, the building would not get numbered and electricity, water and gas connections would not be provided to such building.
The court said that except for the bald allegation that the petitioner himself was responsible for the delayed issuance of the occupancy certificate, no proper pleadings have been made on behalf of the respondent Municipality.
The bench opined that the petitioner is liable to pay the tax for the period after issuance of the occupancy certificate and not prior to the said date, the present writ petition to that extent is allowed. The Municipality is entitled to recover the tax from the date of issuance of the occupancy certificate.
The court said that the Respondent Municipality should issue demand notices for property tax for the date of completion certificate, if the tax has now already been paid and may levy interest etc as per law.
Case title: M. Baiju V/S The Secretary, Kozhikode Municipal Corporation, Corporation Building, Kozhikode
Citation: WP(C) NO. 41735 OF 2018
