The Kerala High Court has emphasized the necessity of serving advance notice to the Secretary under Section 239(3) of the Municipality Act for claiming remission of property tax in the succeeding half-year. Justice Dinesh Kumar Singh underscored the mandatory nature of advance notice for property tax remission, stating that without such notice, the Municipality is not obligated to grant remission.
In a specific case, it was evident that no valid notice had been delivered after the 2020-21 financial year, as required by Section 239(3) of the Kerala Municipality Act. The absence of this notice precluded the Municipality from approving the claimed property tax remission. Justice Singh emphasized that the delivery of advance notice by the owner is a crucial prerequisite for claiming remission in the succeeding half-year.
The petitioner, who owned a commercial building, had paid property tax for the 2016-17 financial year. In 2020, the petitioner applied to the Secretary to waive the property tax for the building, citing its vacancy. The petitioner requested the acceptance of property tax for the current half-year. However, the application was not considered, prompting the petitioner to seek intervention from the High Court. The Court directed the Secretary to review the application, leading to the waiver of half-yearly property tax for the 2020-21 financial year. Despite this, the Secretary did not grant remission of property tax, prompting the petitioner to approach the High Court again.
Referring to Section 239 of the Municipality Act, which outlines the procedure for remission of property tax for vacant or unlet buildings, the Court focused on Section 239(3). It stressed that delivering notice to the Secretary about the building's vacancy or being unlet was mandatory for property tax remission from a specific date. The Court pointed out that if advance notice was not served during the half-year, remission could not be granted for the succeeding half-year.
According to the Court, Section 239 of the Kerala Municipality Act clearly requires the owner to provide notice to the Secretary, indicating that the building is vacant or unlet, either in the half-year when the notice is delivered or in the subsequent half-year. The notice's validity expires with the succeeding half-year and has no effect thereafter.
Consequently, the Court concluded that the petitioner must settle the arrears of property tax and future taxes for using the commercial building. It emphasized that the petitioner cannot make payments for the current half-yearly tax until the arrears are cleared.
In summary, the Kerala High Court's decision underscores the crucial role of advance notice in claiming property tax remission under the Municipality Act. The Court's interpretation of Section 239(3) emphasizes the mandatory nature of providing notice to the Municipality Secretary, serving as a prerequisite for any subsequent remission of property tax. The ruling highlights the importance of complying with procedural requirements to avail oneself of tax benefits, ensuring a fair and lawful process for both property owners and local authorities.
TAGS: Kerala High Court Section 239 Municipality Act Property tax remission Advance notice Justice Dinesh Kumar Singh
