9911796707
TMI Blog2003 (2) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... lands at a certain percentage of the annual value of such buildings and lands as the State Government may determine within the prescribed limits. Challenge in this bunch of writ petitions is to the vires of the Haryana Municipal (Amendment) Act, 2001, whereby the definition of "annual value" in clause (1) of section 2 of the principal Act has been amended. The directions issued by the State Government under proviso (ii) of section 2(1)(b) and (c) as introduced by the Amending Act have also been impugned prior to the amendment of the principal Act, clauses (b) and (c) of section 2(1) were as under: "2. Definitions.--(1) 'annual value' notwithstanding anything contained in any other law for the time being in force, means,--... (b) in the case of any house or building together with its appurtenance or any furniture that may be let for use and enjoyment therewith, the gross annual rent- (i) to be calculated on the basis of fair rent fixed under the law relating to rent restriction for the time being in force; or (ii) where no fair rent referred to in item (i) is fixed, at which it is expected to be let or it is actually let, whichever is greater, subject to the following deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive per cent. of the estimated market value of the land; (c) in the case of any house or building whether self-occupied or tenanted, five per centum on the sum obtained by adding the estimated present cost of erecting the building, less such amount as the Government may deem reasonable to be deducted on account of depreciation, if any, to the estimated market value of the site and any land attached to the house or building: Provided that- (i) in the calculation of the annual value of any premises, no account shall be taken of any machinery thereon; (ii) the basis of assessing the present market value of the land, the cost of erecting the building and depreciation shall be such as may be decided by the Government. Different rates may be determined for different categories of buildings and lands; (iii) if the actual annual rent received by the owner is higher than the annual value as determined, then the actual annual rent shall be deemed to be the annual value for the purpose of this Act; (iv) the annual value of the building so determined shall be subject to a deduction of ten per cent. for the cost of repairs and other expenses necessary for the proper maintenance of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the land at the rate fixed by the Collector; (ii) Annual value of the property 5 per cent. of the annual value of the property; (iii) Rebate on annual maintenance 10 per cent. of the annual value of the property, after rebate; (iv) Annual value after rebate 90 per cent. of the annual value; (v) Land and building tax (a) 2.5 per cent. of the annual value determined after rebate for residential building; (b) 5 per cent. of annual value after rebate for commercial building. 2B. The following formula is to be adopted for the land and building tax as per the amended notification for the industrial buildings and institutions: (i) Cost of building Basic cost of the building plus constructed area of the building ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Government instructions is the rate of the land and the rate of depreciation which according to the statutory provisions has to be reasonable in the circumstances of each case. Thus, the objection that the statutory provision providing for inviting of objections has been made redundant, is without any basis. It is open to an occupier/owner of the property to raise objections regarding the valuation of the structure. Thus, the only question which requires due consideration is whether the determination of the value of the land on the basis of the rates as fixed by the District Collector is reasonable. Our answer to this question is in the affirmative. The determination of the value of the land on the basis of the rates fixed by the Collector is fair and reasonable because such rates are determined on the basis of the actual sale transactions which take place in a particular area during a certain period. These rates by and large reflect the correct market value of the land in that area and, therefore, the basis as adopted by the State Government cannot be said to be unreasonable or arbitrary so as to make the provision violative of article 14 of the Constitution. Since the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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