2017 (1) TMI 1788 - SC - Indian Laws

Challenging Property Tax Levy: Appeal Mechanism Clarified

The Appellants appealed against a property tax levy, claiming exemption as an educational institution. The High Court did not address the exemption issue, ... Levy of property tax - Validity of steps taken by the Respondents for levy of property tax - educational institution - exempt from property tax or not - HELD THAT:- The provisions of Section 93 of the Cantonments Act, 2006, would clearly show that against any levy as well, an appeal will lie. Therefore, as rightly submitted by the learned Counsel for the Respondent, it is open to the Appellate Authority to go into the question as to whether the Appellant No. 1/institution was liable to be exempted as well. Therefore, clarifying that it is open to the Appellants to take all available contentions including their entitlement to exemption from payment of property tax, this appeal is disposed of. Issues:1. Appellants aggrieved by property tax levy2. Claim of exemption as an educational institution3. High Court's refusal to address the exemption issue4. Interpretation of Section 93 of the Cantonments Act, 2006Analysis:The judgment addresses the appeal filed by the Appellants against the property tax levy imposed by the Respondents. The crux of the matter lies in the Appellants' contention that, as an educational institution, they are fully exempt from paying property tax. The High Court refrained from delving into this issue, citing the availability of an alternative remedy under Section 93 of the Cantonments Act, 2006. The said section outlines the provision for appeals related to tax assessments. Specifically, Section 93(1) states that appeals against tax assessments, levies, or refund refusals can be made to the District Court.The Court's analysis emphasizes that the appeal mechanism under Section 93 encompasses challenges to tax levies, allowing for a thorough examination of the Appellants' exemption claim. The judgment clarifies that the Appellants retain the right to raise all relevant arguments, including their entitlement to exemption from property tax. Consequently, the appeal is disposed of with the directive that the Appellate Authority should not dismiss any appeals based solely on procedural delays if filed within thirty days from the judgment date. Additionally, any pending applications are deemed resolved in light of this decision.