2011 (3) AIR Bom R 277 ::AIR 2011 (NOC) (SUPP.) 1200 (BOM.) (AURANGABAD BENCH)

Bombay High Court ( Aurangabad Bench )

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

(A) Evidence Act (1 of 1872) S. 115 — Promissory estoppel — Applicability — Demand of property tax by Gram Panchayat — Memorandum of Understanding (MOU) between state of Maharashtra and Skoda, a company manufacturing cars — Skoda was to pay Rs 3 lacs and Government of Maharashtra was to provide infrastructural facilities to it — No promise made in MOU that Skoda would not be required to pay any taxes to Gram Panchayat — No express exemption in respect of property taxes provided to Skoda — On the contrary Skoda subsequently making agreement with Gram Panchayat to pay lump sum contribution towards payment of taxes — Doctrine of promissory estoppel not applicable — Skoda cannot question levy of property tax by Gram Panchayat on basis of purported promise held by Government under MOU (Para 24,25)

(B) Bombay Village Panchayats Act (3 of 1959) S. 124 , 125 — Maharashtra Village Panchayat Taxes and Fees Rules (1960), R 7 — Maharashtra Industrial Development Act (3 of 1962), S 17 — Levy of taxes — And levy of fees — Distinction between — S 17 of MID Act provides for levy of fees or service charges to cover expenses of MIDC relating to maintenance of roads, drainage, water-supply, street lighting etc — S 124 of Bombay Village Panchayats Act provides for levy of taxes on buildings — Both the levies are distinct and exclusive — One is fee— and other is tax— — Hence no question of double taxation would arise {" It emerges from the provisions of Section 17 of the MID Act and Section 124(1) of the BVP Act that while Section 17 of MID Act provides for levies in respect of fees or service charges to cover the expenses of MIDC relating to maintenance of roads, drainage, water-supply, street lighting etc., Section 124(1) of the BVP Act provides for levies of taxes and fees as reflected in the clauses (i) to (xviii) and both the authorities viz. MIDC as well as Gram Panchayat are authorized in law for imposing their respective levies as specified hereinabove. In the instant case, the levy by the Gram panchayat in respect of tax on buildings is relatable to clause (i) of sub-section (1) of Section 124 of the BVP Act. It is therefore apparent that both the levies by the authorities i.e. by the MIDC and the Gram ....