Case Note & Summary
The petitioner, K Narasimhamurthy, is the absolute owner of agricultural land bearing No.35 measuring 4 acres situated at Nagasandra Village, Sondekoppa Post, Dasanapura Hobli, Bangalore North Taluk, Bangalore Urban District. He set up a poultry farm in a portion of the said land. To obtain an electricity connection, he approached the Karnataka Electricity Board, which required a no-objection certificate from the Sondekoppa Grama Panchayath. The Panchayath issued a notice dated 20.09.2013 demanding payment of Rs.59,551/- as property tax for the poultry farm. The petitioner paid the amount under protest and later filed a writ petition seeking refund of the amount and quashing of the notice. The Court examined whether the Panchayath had the authority to levy property tax on agricultural land used for poultry farming. It held that poultry farming is an agricultural activity and the land continues to be agricultural land, which is exempt from property tax under the Karnataka Panchayat Raj Act, 1993. The levy was without jurisdiction and illegal. The Court allowed the petition, quashed the notice, and directed the respondents to refund the amount of Rs.59,551/- with interest at 6% per annum from the date of payment until realization, within eight weeks.
Headnote
A) Local Self-Government - Property Tax - Levy on Agricultural Land - Sections 199, 200 Karnataka Panchayat Raj Act, 1993 - The Grama Panchayath levied property tax on agricultural land used for poultry farming - The Court held that poultry farming is an agricultural activity and the land remains agricultural, thus not subject to property tax under the Act - The levy was without authority of law and the Panchayath was directed to refund the amount collected with interest (Paras 1-10).
Issue of Consideration
Whether the Sondekoppa Grama Panchayath was justified in levying property tax on agricultural land used for poultry farming and whether the petitioner is entitled to refund of the tax collected.
Final Decision
The writ petition is allowed. The notice dated 20.09.2013 (Annexure-A) is quashed. The respondents are directed to refund the amount of Rs.59,551/- collected from the petitioner with interest at 6% per annum from the date of payment until realization, within eight weeks from the date of receipt of a copy of this order.
Law Points
- Property tax cannot be levied on agricultural land used for poultry farming
- Poultry farming is an agricultural activity
- Grama Panchayath has no jurisdiction to impose tax on agricultural land
- Refund of illegally collected tax with interest is permissible
