[S.239 Municipality Act] Advance Notice Regarding Vacancy Of Building Mandatory To Claim Remission Of Property Tax: Kerala High Court

Justice Dinesh Kumar Singh observed that advance notice was mandatory for claiming remission of property tax.

“In the present case, it is evident that after 2020-21, no valid notice has been delivered as is required under sub- section (3) of Section 239 of the Kerala Municipality Act. In the absence of the notice, there arises no occasion for the Municipality to grant remission of the property tax as claimed by the petitioner. Delivery of notice by the owner in advance to claim remission in the succeeding half-year of the financial year is sine qua non to claim remission.”

The petitioner, owner of a commercial building paid property tax for the building in 2016-17. In 2020, he submitted an application before the Secretary for waiving off the property tax as the building was lying vacant and requested acceptance of the property tax for the current half-year. Since his application was not considered, he approached the High Court pursuant to which the Secretary was directed to consider and pass orders. As per the order of the Court, the half-yearly property tax was waived off for the financial year 2020-21, as the application was filed in the half-year only but the remission of property tax was not allowed by the Secretary against which he has approached the High Court.

The Court referred to Section 239 of the Municipality Act which pertains to the procedure for remission of property tax when the building was lying vacant or unlet. On analysis of Section 239 (3), it observed that notice was mandatory to be served to the Secretary of the Municipality that the building was vacant or unlet for remission of property tax from a particular date. It noted that if advance notice was not served claiming remission of property tax in the half year, then remission cannot be granted for the succeeding half year.

“Section 239 of the Kerala Municipality Act, it is evident that to claim remission of property tax on a building, the owner is required to deliver a notice to the Secretary that the building is vacant and unlet or the building will be vacant and unlet from a particular date either in the half-year in which notice is delivered or in the succeeding half-year. Every such notice would expire with the half-year succeeding the half-year during which it is to be delivered and shall have no effect thereafter.”

The Court thus observed that the petitioner has to pay arrears of property tax as well as the future property tax for using the commercial building. It noted that the petitioner cannot be permitted to make payment of the current half-yearly tax unless he clears the arrears.

Accordingly, the writ petition was dismissed.

Counsel for the petitioner: Advocate T.Rajasekharan Nair

Counsel for the respondents: Advocate M.K.Aboobacker

Citation: 2023 LiveLaw (Ker) 689

Case title: P.N.Saseendran V Kalamassery Municipality

Case number: WP(C) NO. 6372 OF 2023

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