Municipal assessment limited to in-municipality property and circumstances; ultra vires assessments may be challenged in civil court.

A municipal assessment under Section 85 had to be confined to the assessee's circumstances and property within the municipality; an assessment based wholly or partly on extraterritorial circumstances or property exceeded the statutory authority and was ultra vires to that extent. A civil suit did not lie merely to reduce a lawful assessment, but it was maintainable where the challenge was to the legality of the basis of assessment and the municipal action was beyond jurisdiction. Declaratory relief in civil court was therefore available.

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Issues: (i) Whether a municipal assessment under Section 85 could be based on the assessee's circumstances and property outside the municipal limits; (ii) Whether a civil suit lay to challenge an assessment alleged to be ultra vires.

Issue (i): Whether a municipal assessment under Section 85 could be based on the assessee's circumstances and property outside the municipal limits.

Analysis: The statutory language confined the tax to persons occupying holdings within the municipality and required assessment according to their circumstances and property within the municipality. An assessment founded wholly or even partly on circumstances and property outside the municipal limits exceeded the authority conferred by the provision.

Conclusion: The assessment could not lawfully be made on the basis of property or circumstances outside the municipality, and was ultra vires to that extent.

Issue (ii): Whether a civil suit lay to challenge an assessment alleged to be ultra vires.

Analysis: A suit merely to reduce the amount of a lawful assessment was not maintainable, but where the challenge was to the legality of the basis of assessment and the action complained of was beyond jurisdiction, civil relief was available. An ultra vires municipal assessment could be questioned in a civil court.

Conclusion: The civil suit was maintainable.

Final Conclusion: The assessment was held illegal for having been made on an impermissible basis, and the assessee was entitled to declaratory relief in civil court.

Ratio Decidendi: Where a municipal tax is required by statute to be assessed only on circumstances and property within the municipality, any assessment based on extraterritorial circumstances or property is ultra vires and may be challenged by civil suit.

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