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TMI Blog1961 (3) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... which are constructed buildings of the factory, ware-houses, bungalows and other structures appurtenant to the factory. The respondent, a Borough Municipality constituted under the Act is by s. 73, entitled to levy a rate on lands and buildings and also a water-rate. Under the rules framed by the Municipality, house-tax and water-tax were levied on buildings and non-agricultural lands on their annual letting value at uniform rates whether the purpose was residential, business or manufacturing. 2. In 1944, the Municipality resolved to enhance the assessment of lands and buildings within its area. After some correspondence with the Commissioner, Central Division, the General Body of the Municipality resolved that the rental value for levyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ldings which are not taxed under rule 2C above. 3. The Municipality prepared an assessment list under the new scheme of taxation in respect of factory buildings and buildings relating thereto and issued notices of demand calling upon the appellants to pay house-tax and water-tax newly assessed thereon. The appellants paid under protest the tax demanded, and filed five suits in the court of the Civil Judge, Junior Division of Barsi to recover the amounts levied by the Municipality in excess of the amounts due under the old scheme. In all these suits, the principal issue raised was about the validity of rule 2C framed by the Municipality for levy of rates "on Mills, Factories and other buildings relating thereto". The trial court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act which provide for preparation of the assessment list, its authentication and amendment. When a rate on building or lands or both is imposed, the Chief Officer causes an assessment-list of buildings or lands or lands and buildings in the municipal borough to be prepared containing inter alia the names of the owner, the valuation based on capital or annual letting value as the case may be on which the property is assessed and the amount of tax assessed thereon. The expression "Annual letting value" is defined in s. 3(1) of the Act as meaning the annual rent for which any building or land, exclusive of furniture or machinery contained or situate therein or thereon might reasonably be expected to let from year to year, and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting value, the building must be valued at the annual rental which a hypothetical tenant my pay in respect of the building. The Municipality ignored both the methods of valuation and adopted a method not sanctioned by the Act. By prescribing valuation computed on the area of the factory building, the Municipality not only fixed arbitrarily the annual letting value which bore no relation to the rental which a tenant may reasonably pay, but rendered the statutory right of the tax-payer to challenge the valuation illusory. An assessment list prepared under s. 78, before it is authenticated and finalised, must be published and the tax-payers must be given an opportunity to object to the valuation. By the assessment list in which the valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntention that all methods of valuation other then the method prescribed by the proviso to s. 82(2) were by necessary implication prohibited. This contention was rejected because the generality of the substantive enactment was left unqualified except in so far as it concerned the particular subjects to which the proviso related. Open lands were not covered by the proviso and it was competent to the municipality to levy the tax under s. 82(2) on the annual value and that value would be determined by any of the recognised methods of arriving at the rent which a hypothetical tenant may reasonably be expected to pay for the lands in question. This case has in our judgment no relevance to the present case. 7. If the Municipality of Barsi had ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opting the flat and uniform rate, the principle of fixing the annual letting value on the basis of the floor area would not be open to challenge. It was assumed in that case that all factory buildings within the area of the Amalner Municipality were alike in essential features and were intended to be used for purposes which where alike, and that probably the Municipality may have been satisfied that the principal enunciated in the rule impugned worked out on the whole as a fair basis for determining the valuation of the building in question. In our view, this approach to a rating problem arising under the Act is not permissible. In any event, there is no evidence on the record of this case that the factories and "buildings relating the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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