2023 (4) TMI 1190 - HC - VAT and Sales Tax

Court orders re-assessment of Basic Tax on land for non-agricultural use under Kerala Land Tax Act

CM JIYAS, S/O MUHAMMED, RINCY Versus REVENUE DIVISIONAL OFFICER, MUVATTUPUZHA, THE TAHSILDAR (LR) KOTHAMANGALAM TALUK, THE VILLAGE OFFICER

The Court directed the Revenue Divisional Officer to consider the petitioners' application for re-assessment of Basic Tax on their land for ... Omission of the 2nd respondent-Tahsildar in entertaining Form A application submitted by the petitioners for re-assessment of rate of Basic Tax on land and for making necessary entries in the Basic Tax Register - HELD THAT:- This Court has considered the issue of reassessment of land tax on the basis of the orders obtained under the Kerala Land Utilisation Order, 1967 in the judgment in MARY ABRAHAM VERSUS STATE OF KERALA AND ORS. [2020 (3) TMI 1445 - KERALA HIGH COURT]]. This Court held that once enabling order is passed under Rule 6(2) of the Kerala Land Utilisation Order, 1967 permitting conversion of the land, then the earlier entries in the BTR showing the land as Nilam, Paddy Land, etc. will become superfluous and redundant and the competent Revenue officials like the Tahsildar are obliged under law to make a fresh assessment of the property under Section 6A of the Kerala Land Tax Act, 1961. As the nature of the land of the petitioners has been permitted to be changed pursuant to passing of a statutory order under the Kerala Land Utilisation Order, 1967, the competent authority is bound to re-assess the rate of Basic Tax in respect of the land and to make necessary entries in the Basic Tax Register, if necessary, after verifying the veracity/genuineness of the permission obtained under the Kerala Land Utilisation Order, 1967 produced by the petitioners. There will be a direction to the 1st respondent-Revenue Divisional Officer to consider Ext.P6 Form-5 application submitted by the petitioners and take a decision thereon, within a period of one month - Application disposed off. Issues Involved:1. Omission of Tahsildar in entertaining Form A application for re-assessment of Basic Tax.2. Failure to re-assess Basic Tax rate despite permission for non-agricultural use.3. Discrepancy in Revenue records description of land.4. Verification of genuineness of permission under Kerala Land Utilisation Order.5. Obligation of competent Revenue officials to reassess property under Kerala Land Tax Act.Issue 1: Omission of Tahsildar in entertaining Form A application for re-assessment of Basic TaxThe petitioners approached the Court aggrieved by the failure of the 2nd respondent-Tahsildar to entertain their Form A application for re-assessment of the rate of Basic Tax on their land and for updating the Basic Tax Register.Issue 2: Failure to re-assess Basic Tax rate despite permission for non-agricultural useThe petitioners, owners of land seeking to use it for non-agricultural purposes, obtained an order under the Kerala Land Utilisation Order in 2014. However, the Basic Tax rate was not re-assessed, and the land was still described as paddy land in Revenue records, prompting the submission of an application in Form A under Section 6(3) of the Kerala Land Tax Act for re-assessment.Issue 3: Discrepancy in Revenue records description of landThe petitioners' land, permitted for non-agricultural use, was inaccurately described as paddy land in Revenue records. The Tahsildar did not act on the application for re-assessment, leading to the petitioners seeking relief from the Court.Issue 4: Verification of genuineness of permission under Kerala Land Utilisation OrderThe Government Pleader contested the petition, emphasizing the need to verify the genuineness of the permission granted under the Kerala Land Utilisation Order in 2014. The current status of the land was deemed essential before reassessment under the Kerala Land Tax Act.Issue 5: Obligation of competent Revenue officials to reassess property under Kerala Land Tax ActThe Court referred to precedents where it was established that upon obtaining an enabling order for land use conversion under the Kerala Land Utilisation Order, the Revenue officials, including the Tahsildar, were obligated to conduct a fresh assessment under the Kerala Land Tax Act. The Court directed the Revenue Divisional Officer to consider the petitioners' application and instructed the Tahsildar to act upon it post the decision on another pending application.This detailed analysis of the judgment highlights the key issues addressed by the Court and the legal principles applied in resolving the matter concerning the reassessment of Basic Tax on the petitioners' land.