Merely on the ground of pending appeal by a city-based hotel against levy of property tax by Chennai Corporation, it was not possible to stall hike in water tax (which was based on property tax assessment) by the Chennai Metropolitan Water Supply & Sewerage Board, the Madras High Court has held.
Ruling that if the hotel (Indralok Hotel Pvt Ltd) succeeded in its appeal in the Corporation, water tax imposed on the establishment would also be subject to revision, Mr Justice K. Chandru said. Just because the hotel went on appeal before the Corporation, that by itself could not prevent the valid statutory order being issued by Metrowater.
According to the hotel, which had filed a writ petition in the court challenging property tax assessment order of September 23, 2009 contending it was in violation of the TN Buildings Lease & Rent Control Act, calculating water tax on basis of enhanced property tax was also illegal.
By the order of June 13, 2011, Metrowater asked the petitioner to pay arrears of water tax amounting to Rs 61.53 lakh. If the said payment was not made, a surcharge would be imposed on hotel.
Metrowater submitted that under the Metropolitan Water Supply & Sewerage Board's Water Supply Charges (Levy & Collection Regulations 1982, water tax was levied on the basis of property tax. Whenever there was variation in property tax, natural consequence was for corresponding increase in water tax also. There was nothing illegal in the impugned demand for revised water tax.
The writ petition was dismissed by the judge.