Case Note & Summary
The petitioner, M/s. Skoda Auto India Pvt. Ltd., a company manufacturing automobiles, challenged the property tax demands issued by the Gram Panchayat, Kumbephal, for the assessment years 2006-07 to 2008-09. The petitioner's factory is located in the MIDC area, Shendra, which falls within the limits of Gram Panchayat Kumbephal. The Gram Panchayat issued demand bills for property tax, which the petitioner disputed on the ground that the land is not within the Gram Panchayat limits and that the tax is not leviable on industrial land in MIDC area. The petitioner filed appeals before the Block Development Officer (first appeal) and the Standing Committee of Zilla Parishad (second appeal), both of which were dismissed. Thereafter, the petitioner filed a revision application before the Minister of Rural Development under Section 124(6) of the Bombay Village Panchayats Act, 1958, which was also dismissed. The petitioner then filed a writ petition in the Bombay High Court. The court examined the provisions of the Act and found that the Gram Panchayat has the power to levy property tax on lands and buildings within its limits under Section 124(1). The court noted that the petitioner's land is situated within the Gram Panchayat limits and there is no exemption for industrial units in MIDC area. The court also held that the revision application under Section 124(6) was not maintainable because the order of the Block Development Officer was passed under Section 124(1) and not under Section 124(6). The court dismissed the writ petition, upholding the tax demand and the orders of the lower authorities.
Headnote
A) Bombay Village Panchayats Act - Property Tax - Levy on Industrial Land - Section 124 - The Gram Panchayat is empowered to levy property tax on lands and buildings within its limits, including industrial land in MIDC area. The petitioner's contention that the land is not within the Gram Panchayat limits was rejected as the land is situated within the Gram Panchayat of Kumbephal. (Paras 1-10) B) Bombay Village Panchayats Act - Revision - Maintainability - Section 124(6) - The revision application filed by the petitioner under Section 124(6) was not maintainable because the order of the Block Development Officer was passed under Section 124(1) and not under Section 124(6). The Minister's order dismissing the revision was upheld. (Paras 11-15) C) Property Tax - Exemption - Industrial Units - No exemption from property tax is available to industrial units merely because they are located in MIDC area. The Gram Panchayat has the authority to levy property tax on all properties within its jurisdiction. (Paras 16-20)
Issue of Consideration
Whether the property tax levied by the Gram Panchayat on the petitioner's industrial land is valid and whether the revision application under Section 124(6) of the Bombay Village Panchayats Act, 1958 was maintainable.
Final Decision
The writ petition is dismissed. The order of the Minister dated 16.4.2010 and the tax demand notices are upheld.
Law Points
- Property tax is leviable on industrial land within Gram Panchayat limits
- Revision under Section 124(6) not maintainable against order under Section 124(1)
- No exemption from property tax for industrial units in MIDC area
- Gram Panchayat has jurisdiction to levy property tax on lands within its limits
