AIR 1998 KERALA 34 ::(1997) 2 Ker LT 74 ::(1997) 2 Ker LJ 38

Kerala High Court

Hon'ble Judge(s): P. A. Mohammed , J

Kerala Panchayat Act (32 of 1960) , S.68— Kerala Panchayat (Building Tax) Rules (1963) , R.4 Proviso(ii)— Scope - Building not @page-Ker35ordinarily let - Annual rental value - Determination on basis of capital value - Executive Authority must first record reasons for treating building as not ordinarily let - Non-recording of opinion - Levy of building tax is illegal. Clause (ii) of the proviso to R. 4 authorises the fixation of the building tax on the basis of the capital value of any building of a class not ordinarily let, the gross annual rent of which cannot in the opinion of the Executive Authority be estimated. In order to attract clause (ii) of the proviso there must be an opinion by the Executive Authority that the gross annual rent of the building cannot be estimated. To put it differently, the fixation of the tax on the basis of the capital value can be adopted only when there is an 'opinion' by the Executive Authority that the gross annual rent of the building cannot be estimated. Mere ipsi dixit of the Executive Authority is not sufficient. That 'opinion' shall be formed on cogent materials because it may result in adopting a different mode of fixation of annual rental value in the case of buildings not ordinarily let. The 'opinion' of the Executive Authority may sometimes adversely affect the owner of the building. Therefore the r....