Court Rules Demands Invalid Due to Non-Publication of Revised Rates as per Legal Requirement
In a significant ruling, the Kerala High Court has quashed the property tax demands issued by Haripad Municipality, citing non-compliance with the statutory requirement of publishing revised tax rates. The judgment was delivered by Justice Ziyad Rahman A.A., who presided over the petitions filed by multiple residents challenging the municipality's orders and tax demands.
The petitioners, including P.V. Suresh, Baiju P., and Mathew Kunnel Abraham, contended that the revised property tax rates had not been published in two newspapers, as mandated by Rule 4 of the Kerala Municipality (Property Tax, Service Cess, and Surcharge) Rules, 2011. The court observed that the failure to adhere to this mandatory requirement rendered the tax demands unsustainable.
The court's decision was based on two primary grounds raised by the petitioners. Firstly, the municipality's failure to publish the revised tax rates as required by law meant the demands were invalid. Secondly, the demands for property tax extended beyond the permissible three-year period preceding the date of the demand, contrary to Section 539 of the Kerala Municipality Act.
The court had previously issued interim orders allowing the municipality to rectify the situation by publishing the revised rates. However, since the final notification was not made, the court ruled that the demands were liable to be quashed. The court further directed that any excess amounts collected from the petitioners during the pendency of the writ petitions should be credited towards future arrears.
This judgment underscores the importance of municipalities adhering to statutory procedures when revising and collecting property taxes, ensuring transparency and accountability in public administration.
Bottom line:-
Property tax demands by Municipality without mandatory publication of revised rates as per Rule 4 of Kerala Municipality (Property Tax, Service Cess, and Surcharge) Rules, 2011 are unsustainable.
Statutory provision(s): Kerala Municipality Act Section 539, Kerala Municipality (Property Tax, Service Cess, and Surcharge) Rules, 2011 Rule 4
P.V. Suresh v. Haripad Municipality, (Kerala) : Law Finder Doc id # 2929030
