The Calcutta High Court recently upheld a 50% waiver of interest on property tax while dismissing an appeal from the assessee, Saila Ghosh. The bench, comprising Justice Joymalya Bagchi and Justice Gaurang Kanth, ruled that the appellant could not raise issues at the appellate stage regarding non-service of bills that were not mentioned earlier.
In 1998, the property tax on the premises owned by the appellant was set at Rs. 165 per quarter. By 2004-2005, the tax had increased to Rs. 1115 per quarter. The appellant claimed regular payment of the tax, but notices for arrears for 2011-2014, along with current tax up to the 4th quarter of 2014-2015, were issued with surcharges and interest.
The appellant sought to pay the arrears in installments, a request denied by municipal authorities, leading to a petition before a single judge. The judge upheld the notice of demand but waived 50% of the interest.
The Bally Municipality contested the single judge’s decision, arguing that the appellant had not raised the issue of non-service of bills in earlier representations or in the writ petition. The municipality maintained that there was no scheme to waive interest on property taxes and sought to set aside the interest waiver.
The court noted that the appellant had not raised the issue of non-service of bills during the decade-long period when the bills were issued. Given that municipalities are required to maintain records for only three years, the relevant bills were no longer available. The court ruled that the appellant’s belated claim was an attempt to avoid liability.
Dismissing the appeal, the court directed the municipality to issue a notice of demand for the amount fixed by the single judge within seven days. The appellant was ordered to pay the amount within a fortnight, failing which it would accrue an interest rate of 10% until paid.
Case Details:
- Counsel for Appellant: Sandip Ghosh
- Counsel for Respondent: Amal Kr. Sen
- Case Title: Saila Ghosh Versus State of West Bengal
