The Business Line 05.08.2010
Tambaram Municipality ‘cannot demand' property tax from MEPZ: Court
Our Legal Correspondent
Chennai, Aug. 4
The Madras High Court has held that the Tambaram Municipality “cannot demand any property tax” from the Madras Export Processing Zone in respect of its administrative building situated on the National Highway, Tambaram.
Allowing a writ petition from the Union of India represented by the Development Commissioner of the Export Processing Zone challenging the notice dated March 6, 2002 issued by the Municipality demanding payment of property tax in respect of the administrative building of the Zone, Mr Justice K. Chandru referred to Article 285 of the Constitution which granted exemption of property of the Union from all taxes imposed by a State or by any authority within a State.
The Judge noted that the Supreme Court in the Municipal Corporation, Amritsar vs the Senior Superintendent of PO, Amritsar Division [reported in JT 2004(1) Sc 561], granted relief to the P & T Department, which had nine buildings in Amritsar Municipal Corporation. The appellant Corporation had issued notices to respondents for payment of service charges for providing various services such as water supply, street lighting, drainage and approach roads to land and buildings in the municipal area. The respondents had taken the matter to the High Court, which allowed the petition and the aforesaid notices were set aside. The very same question also came to be considered by this Court in respect of another Central Government establishment vide its judgment in the Principal Accountant General (Civil Audit), TN & Pondicherry Lekha Parikshah Bhavan, Chennai 600 018 vs the Commissioner, Corporation of Chennai, reported in 2010 (5) MLJ 241, the Judge said.
In the light of these legal precedents and in the teeth of Article 285 of the Constitution, the Tambaram Municipality could not demand any property tax from the petitioner, the Judge held. The writ petition would stand allowed.
