Case Overview: The petitioner challenged an order dated 22nd February 2024, under Section 406(6)(i)(ii) of the Maharashtra Municipal Corporation Act, 1949, which required the deposit of disputed tax, interest, and penalty for an appeal to be entertained. The court considered whether the phrase “disputed tax” in Section 406(8) of the Act includes interest and penalty.

Key Issues:

• Interpretation of "disputed tax" under Section 406(8) of the Act.
• Whether an appellant must deposit interest and penalty in addition to the disputed tax to file an appeal.

Court's Analysis:

• The court examined the provisions of the Maharashtra Municipal Corporation Act and the Local Body Tax (LBT) Rules.
• It was noted that the scheme of LBT differentiates between tax, interest, and penalty.
• Rule 33 and various forms under the LBT Rules separately categorize tax, interest, and penalty, indicating that these are distinct components.

Previous Judgments:

• The court reviewed previous judgments, including Chennai Network Infrastructure Ltd. vs. Kalyan Dombivli Municipal Corporation and Reliance Communications Ltd. vs. Thane Municipal Corporation. However, it found these cases inapplicable as they dealt with property taxes under different sections of the Act.
• The judgment in C.G. International P. Ltd. vs. State of Maharashtra was found relevant, where it was ruled that only the "disputed tax" needs to be deposited, not the interest or penalty.

Conclusion: The court quashed the impugned order, ruling that the petitioner is not required to deposit interest and penalty for the appeal to be entertained. The matter was remanded for de novo consideration, with instructions for the appellate authority to provide a reasoned and detailed order after a personal hearing.

Disposition: Petition disposed of, with the appellate authority instructed to reconsider the appeal according to the court’s interpretation of the law