{"id":201278,"date":"2001-08-30T00:00:00","date_gmt":"2001-08-29T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/new-delhi-municipal-committee-vs-the-kerala-state-handicrafts-on-30-august-2001"},"modified":"2017-06-08T11:21:04","modified_gmt":"2017-06-08T05:51:04","slug":"new-delhi-municipal-committee-vs-the-kerala-state-handicrafts-on-30-august-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/new-delhi-municipal-committee-vs-the-kerala-state-handicrafts-on-30-august-2001","title":{"rendered":"New Delhi Municipal Committee vs The Kerala State Handicrafts &#8230; on 30 August, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">New Delhi Municipal Committee vs The Kerala State Handicrafts &#8230; on 30 August, 2001<\/div>\n<div class=\"doc_citations\">Equivalent citations: 95 (2002) DLT 320, 2001 (60) DRJ 478<\/div>\n<div class=\"doc_author\">Author: M Sarin<\/div>\n<div class=\"doc_bench\">Bench: M Sarin<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>Manmohan Sarin, J.<\/p>\n<p>1. Petitioner NDMC has filed this writ petition seeking a writ of certiorari for quashing the order dated 16.12.1976 passed by the Additional District Magistrate allowing the Appeal No.212\/76 filed by the respondents. The petitioners had earlier dismissed the objections of the respondents against the proposal to determine the rateable value of property No.B-7, State Emporia Building, Kharag Singh Marg, New Delhi at Rs. 1,86,660\/- less 10%. The petitioners had assessed the property to tax, though the same admittedly belonged to the State Government. Respondent case was that the property owned by the State was not exigible to tax by NDMC.\n<\/p>\n<p>2. The Additional District Magistrate, as noticed above, allowed the appeal by the impugned order dated 16.12.1976, holding that assessment made by the petitioner Committee of a property belonging to the State Government was prima facie illegal as the said properties were exempted from the levy of property tax. He relied on  State of Andhra Pradesh Vs. New Delhi Municipal Committee . The assessment years in question are 1975-76 and 1976-77.\n<\/p>\n<p>3. The question as to whether the New Delhi Municipal Committee could levy tax on properties belonging to the union or State Government is no longer res integra. The Constitution Bench of the Supreme Court in  N.D.M.C. Vs. State of Punjab etc.  has held that the property tax levied by the NDMC under the Punjab Municipal Act of 1994 and by Delhi Municipal Corporation, constituted union taxation, within the meaning of Clause-I of Article 289 of the Constitution of India. The conclusions reached in the said judgment are reproduced below for facility of reference:-\n<\/p>\n<p>&#8220;(a) the property taxes levied by and under the Punjab Municipal Act, 1911, the New Delhi Municipal Corporation Act, 1994 and the Delhi Municipal Corporation Act, 1957 constitute &#8216;Union taxation&#8217; within the meaning of clause (1) of Article 289 of the Constitution of India;\n<\/p>\n<p>(b) the levy of property taxes under the aforesaid enactments on lands and\/or buildings belonging to the State governments is invalid and incompetent by virtue of the mandate contained in clause (1) of Article 289. However, if any land or building is used or occupied for the purposes of any trade or business trade or business as explained in the body of this judgment &#8211; carried on by or on behalf of the State government, such land or building shall be subject to levy of property taxes levied by the said enactments. In other words, State property exempted under clause (1) means such property as is used for the purpose of the government and not for the purposes of trade or business;\n<\/p>\n<p>(c) it is for the authorities under the said enactments to determine with notice to the affected State government, which land or building is used or occupied for the purposes of any trade or business carried on by or on behalf of that State government.&#8221;\n<\/p>\n<p>The Supreme Court also held that the said judgment would operate only prospectively. This would mean that it would govern the financial years 1996-97. As noted earlier the assessment years in question are 1975-76 and 1976-77. The judgment of the Supreme Court would not have any financial consequence in as much as the judgment of the apex court is prospective and the year in question are prior to the said judgment. However, as for years subsequent to 1996-97, it would be open for the NDMC to levy tax if the property is used or occupied for any purpose of trade or business as the exemption is only when the property is used for the purposes government.\n<\/p>\n<p>4. Writ petition stands disposed of in the above terms.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court New Delhi Municipal Committee vs The Kerala State Handicrafts &#8230; on 30 August, 2001 Equivalent citations: 95 (2002) DLT 320, 2001 (60) DRJ 478 Author: M Sarin Bench: M Sarin ORDER Manmohan Sarin, J. 1. Petitioner NDMC has filed this writ petition seeking a writ of certiorari for quashing the order dated [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-201278","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New Delhi Municipal Committee vs The Kerala State Handicrafts ... on 30 August, 2001 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/new-delhi-municipal-committee-vs-the-kerala-state-handicrafts-on-30-august-2001\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Delhi Municipal Committee vs The Kerala State Handicrafts ... on 30 August, 2001 - Free Judgements of Supreme Court &amp; 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