Case Note & Summary
The petitioner, a resident of village Silewada, challenged Resolution No. 6 dated 30th July 1994 passed by the Gram Panchayat, Silewada, whereby the Gram Panchayat called for information from house owners about the valuation of their houses for the purpose of levying property tax on the basis of capital value of lands/buildings. The petitioner contended that the Gram Panchayat had no power to levy property tax on capital value and that the resolution was ultra vires. The Court examined the provisions of the Maharashtra Village Panchayats Act and the Maharashtra Village Panchayats Taxes and Fees Rules, 1960. The Court noted that Rule 7 of the 1960 Rules specifically permits the levy of property tax on the basis of capital value of lands/buildings. The Court held that the resolution calling for information from house owners was a valid step towards the levy of such tax and was not ultra vires. The Court dismissed the petition, upholding the power of the Gram Panchayat to levy property tax on capital value basis.
Headnote
A) Gram Panchayat - Property Tax - Levy on Capital Value - Rule 7 of Maharashtra Village Panchayats Taxes and Fees Rules, 1960 - The Gram Panchayat passed a resolution calling for information from house owners about valuation of their houses for the purpose of levying property tax on capital value basis. The petitioner challenged the resolution as ultra vires. The Court held that the Gram Panchayat has the power to levy property tax on capital value of lands/buildings under Rule 7 of the 1960 Rules, and the resolution calling for information is a step in that direction and is valid. (Paras 1-3)
Issue of Consideration
Whether Resolution No. 6 dated 30th July 1994 passed by Gram Panchayat calling for information from house owners about valuation of their houses for levy of property tax on capital value basis is ultra vires the powers of Gram Panchayat under the Maharashtra Village Panchayats Act and Rules?
Final Decision
The petition is dismissed. The resolution of the Gram Panchayat calling for information from house owners for levy of property tax on capital value basis is upheld as valid.
Law Points
- Gram Panchayat has power to levy property tax on capital value of lands/buildings under Rule 7 of Maharashtra Village Panchayats Taxes and Fees Rules
- 1960
- Resolution calling for information from house owners is valid
- No violation of Article 265 of Constitution of India
Case Details
2011 LawText (BOM) (08) 163
Writ Petition No. 2360 of 1996
B. P. Dharmadhikari, A. P. Bhangale
C.N. Deshpande for petitioner, T.R. Kankale for respondent no.3
Basawesar son of Chandrashekhar Tambakhe
The Gram Panchayat, Silewada, Sarpanch, Gram Panchayat, Silewada, The State of Maharashtra
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Nature of Litigation
Writ petition under Article 226 of Constitution of India challenging resolution of Gram Panchayat calling for information for levy of property tax on capital value basis.
Remedy Sought
Petitioner sought quashing of Resolution No. 6 dated 30th July 1994 passed by Gram Panchayat, Silewada.
Filing Reason
Petitioner contended that the Gram Panchayat had no power to levy property tax on capital value and the resolution was ultra vires.
Previous Decisions
Rule on stay was issued on 25.10.1996 and discharged on 24.2.1998, with no interim order operating.
Issues
Whether Resolution No. 6 dated 30th July 1994 passed by Gram Panchayat calling for information from house owners about valuation of their houses for levy of property tax on capital value basis is ultra vires the powers of Gram Panchayat under the Maharashtra Village Panchayats Act and Rules?
Submissions/Arguments
Petitioner argued that Gram Panchayat has no power to levy property tax on capital value and the resolution is ultra vires.
Respondents (State) supported the resolution, contending that Rule 7 of the 1960 Rules permits levy of property tax on capital value.
Ratio Decidendi
The Gram Panchayat has the power to levy property tax on the capital value of lands/buildings under Rule 7 of the Maharashtra Village Panchayats Taxes and Fees Rules, 1960. The resolution calling for information from house owners is a valid step towards the levy of such tax and is not ultra vires.
Judgment Excerpts
By this petition filed under Article 226 of the Constitution of India, petitioner, who is citizen of India and resident of village Silewada within the jurisdiction of respondent no. 1 Gram Panchayat, has challenged Resolution No. 6 dated 30th July 1994 passed by respondent no. 1 whereby it called for information from house owners about valuation of their houses and provisions of rule 7 of the Maharashtra Village Panchayats Taxes and Fess Rules, 1960 (for short, the “1960 Rules”) in so far as the same permits levy of property tax by respondent no. 1 on the basis of capital value of the lands/buildings.
Procedural History
Writ Petition No. 2360 of 1996 filed under Article 226 of Constitution of India. Rule on stay issued on 25.10.1996. Rule on stay discharged on 24.2.1998. Petition heard and dismissed on 17.8.2011.
Acts & Sections
- Constitution of India: Article 226, Article 265
- Maharashtra Village Panchayats Taxes and Fees Rules, 1960: Rule 7
