Madras High Court
B.Venkatesh vs The Government Of Tamil Nadu on 15 March, 2024
Author: C.Saravanan
Bench: C.Saravanan
W.P.(MD) No.11410 of 2024
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
Reserved on 02.08.2024
Delivered on 05.09.2024
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.(MD) No.11410 of 2024
and
W.M.P.(MD) No.10147 of 2024
B.Venkatesh ... Petitioner
vs.
1. The Government of Tamil Nadu,
Represented by its District Collector,
Collectorate, Madurai 625 020.
2. The Commissioner,
Madurai City Municipal Corporation,
Anna Maligai,
Madurai 625 002.
3. The Assistant Commissioner,
Madurai City Municipal Corporation,
Zone-3, Central,
Madurai 625 001.
4.M/s.Indus Towers Limited,
Represented by its Director ... Respondents
Prayer: Writ Petition filed under Article 226 of Constitution of India for
_______________
https://www.mhc.tn.gov.in/judis
Page No. 1 of 28
W.P.(MD) No.11410 of 2024
issuance of a Writ of Certiorari calling for the records pertaining to the
impugned notices issued by the 3rd respondent dated 15.03.2024,
03.05.2024 in respect of property tax Assessment No.115/052/096133 and
consequential “Distraint” notice issued by the 3rd respondent dated
17.05.2014 and quash the same.
For Petitioner : M/s.M.Senthil Kumar
For Respondent : Mrs.R.A.Ramachandran
ORDER
In this Writ Petition, the petitioner has challenged the impugned
demand notices issued by the third respondent dated 15.03.2024 and
03.05.2024, seeking to demand the arrears of property tax under the
provisions of the Madurai City Municipal Corporation Act, 1971 from
2011-2024.
2. The impugned demand notice dated 15.03.2024 has been issued
in Form – 4 under the Tamil Nadu Urban Local Bodies Act, 1998 as in
force with effect from 13.04.2023.
_______________
https://www.mhc.tn.gov.in/judis
Page No. 2 of 28
W.P.(MD) No.11410 of 2024
3. By the impugned demand notice dated 15.03.2024, the third
respondent has demanded a sum of Rs.3,41,550/- towards the arrears of
property tax due and payable by the petitioner under Section 120 of the
Madurai City Municipal Corporation Act, 1971 from first half of
2002-2003 to 2nd half of 2023-2024.
4. By the impugned demand notices dated 03.05.2024, the third
respondent has demanded a sum of Rs. 3,60,900/-towards being the
arrears of property tax due and payable by the petitioner under Section
120 of the Madurai City Municipal Corporation Act, 1971, for the period
between 1st half of 2002-2003 and 2024-2025.
5 The impugned demand notice dated 15.03.2024 of the third
respondent reads as under:-
FORM 4 (Sec rule 269 (1))
MADURAI MUNICIPAL CORPORATION
Zone-3(Central)
To
Mr./Mrs. 5. Bala Subramanian (Airtell-72002)Door No…………. Ward No.5.2.
Street Name SOUTH MASI STREET (1-116, 154 END)
_______________
https://www.mhc.tn.gov.in/judis
Page No. 3 of 28
W.P.(MD) No.11410 of 2024Take notice that a sum of Rs. 34,1550/- is due from you as
detailed hereunder on account of Property Tax to 115
10521906133 for the building situated in SOUTH MASI
STREET CL-116.154. END)If you fail to pay the sum due to the Madurai Municipal
Corporation within fifteen days from the date of service of
this notice, action will be initiated for recovery of the
same by issuing a warrant notice for distraint and sale of
your movable property and / or attachment and sale of
your immovable property as permitted under section 116-
A of the Tamil Nadu Urban Local Bodies Act, 1998
(Tamil Nadu Act 9 of 1999) (Amendment Act, 2022, No.
35 of 2022) or for recovery as an arrear of land revenue
under section 116 of the said Act.
(DETAILS)
Ward Assessment ID Period for Amount due Interest on Total
No. and Details which sum is (in Rs.) amount amount
due due (in due (in
Rs.) if Rs.)
applicable
52 115/052/90613 2002-I2003 to 341550 341550
3 2023-2024 II
Assistant Commissioner,
Zone-3(Central)
Madurai Corporation
6. The 2nd Demand Notice dated 03.05.2024 also reads almost
identically. The case of the petitioner is that the tower that was installed
_______________
https://www.mhc.tn.gov.in/judis
Page No. 4 of 28
W.P.(MD) No.11410 of 2024
over the building was not a ‘building’ within the meaning of Section 2(4)
of the Madurai City Municipal Corporation Act, 1971 and therefore,
demand made in the impugned Form – 4 purportedly seeking to collect the
property tax from the petitioner under Section 148 of the Madurai City
Municipal Corporation Act, 1971 was without jurisdiction and was
therefore liable to be interfered with.
7. It is further submitted that the demand under the provisions of the
Tamil Nadu Urban Local Bodies Act, 1998 is without merits as the Act
has come into force only with effect from 13.04.2023 and would not apply
for the period covered in the impugned demand in Form – 4, dated
15.03.2024 and 03.05.2024.
8. It is therefore submitted that the impugned demands are liable to
be quashed as contrary to law and without authority of law and thus, in
violation of Article 265 of the Constitution of India.
9. Arguing further, the learned counsel for the petitioner submits
that the property in building originally belonged to the petitioner’s father
late.Balasubramaniam, who died on 26.10.2022.
_______________
https://www.mhc.tn.gov.in/judis
Page No. 5 of 28
W.P.(MD) No.11410 of 2024
10. It is submitted that the property was divided between the
petitioner, the petitioner’s brother and petitioner’s mother during the
petitioner’s father’s lifetime and that the petitioner’s brother was assigned
rights over the ground floor, while the petitioner’s mother and father
retained the rights over the first floor while the petitioner was assigned
terrace rights to put up construction over the building.
11. It is submitted that the petitioner’s father, who was the main
assessee of the building, during his lifetime, had never received any
assessment notice for payment of tax. It is submitted that the petitioner
installed the tower after 09.05.2006 as the renewal agreement with the
fourth respondent is dated 23.09.2016 which records the date of the
original lease with Indus Terrace Limited as 09.05.2006.
12. The learned counsel for the petitioner submits that even
otherwise, there are no provision under the Madurai City Municipal
Corporation Act, 1971, to which empowers the official respondent to
levy and collect property tax on mobile transmission towers installed over
a building and therefore, the demand were liable to be quashed.
13. That apart, it is submitted that by way of the demand notice
_______________
https://www.mhc.tn.gov.in/judis
Page No. 6 of 28
W.P.(MD) No.11410 of 2024
dated 03.05.2024 property tax was demanded at Rs.15,000/- each from
2011-12 upto 2021-22. It is submitted that the demand for the earlier
period is also at Rs.15,000/- for a period of 2002-03.
14. It is submitted that normally the property tax is revised once in
five years and thus, it is evident that the demand of property tax at
Rs.15,000/- p.a from the first half of the 2002-03 to second half of
2023-24 and thereafter, upto the first half of 2024-25 was without any
merits.
15. It is submitted that since no assessment was made either against
the petitioner or against the petitioner’s father earlier, demand for the
property tax retrospectively from the year 2002 on mobile transmission
tower installed over the building cannot be countenanced.
16. On the other hand, the learned Standing Counsel for the
respondents 2 and 3 would submit that there is a saving provision under
Section 200 of the Tamil Nadu Urban Local Bodies Act, 1998 as in force
with effect from 13.04.2023.
17. Learned counsel for the respondent further submits that under
the Madurai City Municipal Corporation Act, 1971, property tax was
_______________
https://www.mhc.tn.gov.in/judis
Page No. 7 of 28
W.P.(MD) No.11410 of 2024
payable on all buildings and lands within city except those that were
exempted under the said Act or any other law for the time being in force.
18. It is submitted that the definition of the “building” in Section
2(4)(a) of the Madurai City Municipal Corporation Act, 1971 includes
‘metal’ or any other materials whatsoever.
19. It is therefore submitted that the definition of ”building” in
Section 2(4) of the Madurai City Municipal Corporation Act, 1971, is
wide enough to cover cell phone mobile towers within its sweep.
20. It is therefore submitted that the definition includes any other
structure whether of masonry, bricks, mud, wood, metal or any other
materials whatsoever. It is therefore submitted that the “mobile
transmission tower” is a metal structure and therefore attracted property
tax.
21. The learned Standing Counsel for the respondents 2 and 3
would further draw attention to the decision of the Hon’ble Supreme
Court rendered in Ahmedabad Municipal Corporation vs. GTL
Infrastructure Limited and others (2017) 3 SCC 545.
_______________
https://www.mhc.tn.gov.in/judis
Page No. 8 of 28
W.P.(MD) No.11410 of 2024
22. It is submitted that an identical definition which fell for
consideration before the Hon’ble Supreme Court in the above case. It is
submitted that there the Gujarat Provincial Municipal Corporation
Act, 1949 was amended by insertion of Section 145A which fell for
consideration.
23. It is further submitted that it is beyond any shadow of doubt that
tax was leviable and payable on the building as also mobile towers under
Section 120 of the Madurai City Municipal Corporation Act, 1971
read with Section 2(4)(a) which defines the expression building.
24. It is submitted that under the Tamil Nadu Urban Local Bodies
Rules 1998 and the Tamil Nadu Urban Local Bodies Act, 1998 as in
force with effect from 13.04.2023 a similar provision is available in
Section 82 for levying property tax on buildings including
telecommunication towers.
25. It is submitted that the Repeal and Saving provisions in Section
200 of the Tamil Nadu Urban Local Bodies Act, 1998 also makes it
clear that though the Madurai City Municipal Corporation Act, 1971
stood repealed, notwithstanding such repeal, all Rules, by laws,
_______________
https://www.mhc.tn.gov.in/judis
Page No. 9 of 28
W.P.(MD) No.11410 of 2024
notifications and notices, etc will be saved.
26. It is submitted notices were issued earlier under the provisions
of the Madurai City Municipal Corporation Act, 1971, but were never
responded and hence reminder were sent to the Petitioner.
27. In this connection, a reference is made to Section 200(3)(c)of
the Tamil Nadu Urban Bodies Act, 1998, which reads as under:-
“(c) all rules, bye-laws, notifications, notice, orders,
directions or any other proceedings issued and
schemes framed and works sanctioned by the
Government or the municipality concerned
immediately before the date of the
commencement of this Act shall so far as they
are not inconsistent with the provisions of this
Act, continue to be in force and be deemed to
have been issued or framed or sanctioned under
the provisions of this Act until they are
superseded or modified or reissued under the
provisions of this Act;”
28. Therefore, it is submitted that there is no merits in the present
Writ Petition.It is submitted that at best, the petitioner can be relegated to
work out remedy in terms of Section 100 of the Tamil Nadu Urban
Local Bodies Act, 1998.
29. That apart, it is submitted that the original demands that were
_______________
https://www.mhc.tn.gov.in/judis
Page No. 10 of 28
W.P.(MD) No.11410 of 2024
made against the petitioner’s father has not been challenged and therefore,
on this ground also the present Writ Petition is liable to be dismissed. A
reference is made to para 5 of the counter which reads as under:
“5.It is submitted that as on today the Assessee
has committed default and there is an arrears
of Rs.3,60,900/- is due for the above
Assessment. The Cell Phone Tower has been
in existence from 2002 onwards and neither
the Petitioner nor his father had questioned
the Corporation’s earlier demand. Now, the
Petitioner has come forward with present
Writ Petition with bald allegations and false
averments as if the Cell Phone Tower was
erected in the year 2006. The said averments
are false and misleading. The Petitioner’s
father has let out the open terrace to the Cell
Phone Company even in the year 2002 itself.
The Petitioner’s father had kept silent all
these years during the life time. Now, the
Petitioner, with an ulterior motive for
unlawful gain in order to evade the tax has
come forward with present Writ Petition. The
Petitioner has not produced the registered
lease agreement between the Petitioner father
and 4th Respondent. It is submitted any lease
beyond 1 year has to be registered as per
Transfer of Property Act.”
30. It is further submitted that in any event, lease was for a period
beyond one year and therefore ought to have been registered in terms of
Section 17 of Registration Act, 1908. Therefore, the petitioner cannot
_______________
https://www.mhc.tn.gov.in/judis
Page No. 11 of 28
W.P.(MD) No.11410 of 2024
take advantage of the violations committed by the petitioner and his father
in not registering the lease agreement.
31. The learned counsel for the fourth respondent/owner of the
tower appears through Video Conference and submits that there is a
specific concession as far as the telecommunication towers are concerned.
32. In this connection, he would draw attention to Section 14 of the
Telecommunication Act, 2023 which came into force on 24.06.2024. It
is submitted that the telecommunication tower can never be subjected to
property tax in view of the Section 14 of the Telecommunication Act,
2023. Section 14 of the Telecommunication Act, 2023 reads as under:-
“14(1)A facility provider shall not have any right,
title or interest in the property on which
telecommunication network is established,
except the right to use the property as provided
under section 11 or section 12.
(2) The telecommunication network installed on any
property, shall not be subject to any claims,
encumbrances, liquidation or the like, relating
to such property.
(3) The telecommunication network installed on
any property, shall not be considered as part
of such property, including for the purposes
of any transaction related to that property, or
any property tax, levy, cess, fees or duties as
may be applicable on that property.
_______________
https://www.mhc.tn.gov.in/judis
Page No. 12 of 28
W.P.(MD) No.11410 of 2024
(4) Notwithstanding anything contained in any
other law for the time being in force, no public
entity, except with the permission of an officer
authorised by the Central Government for this
purpose, shall have the authority to take any
coercive action, such as sealing, preventing
access, or forcible shutdown of the
telecommunication network established by an
authorised entity, except where such actions
may be necessary to deal with any natural
disaster or public emergency.”
33. I have considered the arguments advanced by the learned
counsel for the petitioner, learned Additional Government Pleader for the
first respondent, learned Standing Counsel for the respondents 2 and 3
and learned counsel for the 4th respondent.
34. The decision of the Hon’ble Supreme Court DTL
Infrastructure’s case (cited supra) is relevant. Section 127 of the
Gujarat Municipal Corporation Act, 1949 is charging provision under
which taxes were imposed on buildings.
35. Section 127 of the Gujarat Municipal Corporation Act, 1949
was amended by Section 145A of the Gujarat Local Authorities Law
Amendment Act, 2011. Section 145A of the Gujarat Local Authorities
Law Amendment Act, 2011 and Section 127 of the Gujarat Municipal
_______________
https://www.mhc.tn.gov.in/judis
Page No. 13 of 28
W.P.(MD) No.11410 of 2024
Corporation Act, 1949 which was charging section for levy of property
tax on Mobile Transmission Towers read as under :-
Section 127 of the Gujarat Municipal Section 145A of the Gujarat
Corporation Act, 1949 Local Authorities Law
Amendment Act, 2011
Taxes to be imposed under this Act Tax on mobile
towers:
(1) For the purposes of this Act, the (1) A tax at the rates not
Corporation shall impose the exceeding those prescribed
following taxes, namely- by order in writing by the
(a) property taxes either State Government in this
under Section 129 or under behalf from time to time
Section 141-AA. shall be levied on mobile
(b) a tax on vehicles, boats towers from the person
and animals. engaged in providing
telecommunication services
through such mobile
Provided that in the case of a towers.
local area constituted to be a City
under sub-section (2) of section (2) The Corporation shall
3, until the expiry of a period of from year to year, in
two years from the appointed day accordance with Section
or of such further period not 99, determine the rates at
exceeding two years as the State which the tax shall be
Government at the request of the levied.”
Corporation for such City may,
by notification in the Official
Gazette, specify, the provisions
of this section shall have effect as
if there had been substituted for
the words “the Corporation shall
impose” the words “the
Corporation may impose”.]
[(c) a tax on mobile
towers.]
_______________
https://www.mhc.tn.gov.in/judis
Page No. 14 of 28
W.P.(MD) No.11410 of 2024
[(1A) Notwithstanding
anything contained in the
proviso to sub-section (1), in
the case of the Municipal
Corporation of the City of
Rajkot, for a period of two
years commencing on the 19th
November, 1975, the
provisions of sub-section (1)
shall have effect, and shall be
deemed to have had effect, as
if with effect on and from the
19th November, 1975 there
had been substituted for the
words “the corporation shall
impose” the words “the
Corporation may impose” in
the said sub-section (1).]
(2) In addition to the taxes
specified in sub-section (1)
the Corporation may for
the purposes of this Act
and subject to the
provisions thereof impose
any of the following taxes,
namely:-
[* * * * * *];
[* * * * * *]
(c) a tax on dogs;
[(cc) a tax on
entertainments:]
(d) a theatre tax;
_______________
https://www.mhc.tn.gov.in/judis
Page No. 15 of 28
W.P.(MD) No.11410 of 2024
(e) a toll on animals and
vehicles [* *] entering the
City;
(f) any other tax “[(not
being a tax on professions,
trades, callings and
employment)] ]][or octroi]
which the “[ State]
Legislature has power
under the [Constitution] to
impose in the [State].
[(2A) Notwithstanding
anything contained in sub-
section (1) or sub-section
(2), no tax or toll shall be
levied on motor vehicles
save as provided in section
20 of the Bombay Motor
Vehicles Tax Act, 1958.](3) The municipal taxes
shall be assessed and
levied in accordance with
the provisions of this Act
and the rules.
(4) Nothing in this section
shall authorise the
imposition of any tax
which the “[State]
Legislature has no power
to impose in the “[State]
under the “[Constitution].
_______________
https://www.mhc.tn.gov.in/judis
Page No. 16 of 28
W.P.(MD) No.11410 of 2024
36. Thus, tax on “mobile tower” was prescribed under Section
145A of Gujarat Local Authorities Law amendment Act, 2011.
37. The amendment was made into the provisions of the said Act,
in the year 2011. Along with insertion of Section 145-A slew of other
amendments to the said Act were also made. The Act also inserted the
definition of ‘mobile tower’ in Section 2(34-AA). The definition of
“building,”“land” and “mobile tower” in the said Act, read as under:-
Section 2(5) Section 2(30) Section 2(34-AA)
“building” includes a “land” includes land “mobile tower”
house, out-house, which his being built means a temporary or
stable, shed, hut and upon or is built upon or permanent structure,
other enclosure or covered with equipment or
structure whether of water,benefits to arise instrument erected or
masonry, bricks, out of land,things installed on land or
wood, mud, metal or attached to the earth of upon any part of the
any other material
permanently fastened to building or premises
whatever whether used
anything attached to the for providing
as a human dwelling
or otherwise, and also earth and rights created telecommunication
includes verandahs, by legislative enactment services
fixed platforms, over any street;
plinths, doorsteps,
wall including
compound walls and
fencing and the like”
_______________
https://www.mhc.tn.gov.in/judis
Page No. 17 of 28
W.P.(MD) No.11410 of 2024
38. The challenge to the amendment to the provisions of Gujarat
Provincial Municipal Corporation Act, 1949 vide Gujarat Local
Authorities Law Amendment in 2011 was accepted by the Gujarat High
Court. The said decision was reversed by the Hon’ble Supreme Court in
the above mentioned decision. The Court in Hon’ble Supreme Court in
DTL Infrastructure’s case (cited supra) held as under in paragraph:-
“32.Viewed in the light of the above discussion, if
the definition of “land” and “Building”
contained in the Gujarat Act is to be
understood, we do not find any reason as to
why, though in common parlance and in
everyday life, a mobile tower is certainly not a
building, it would also cease to be a building
for the purposes of List II Entry 49 so as to
deny the State Legislative the power to levy a
tax thereon. Such a law can trace its source to
the provisions of Schedule VII List II Entry 49
of the Constitution.”
39. Thus, the decision of the Hon’ble Supreme Court in DTL
Infrastructure’s case (cited supra),also makes it clear that a special
provision of levying the property tax on telecommunication towers was
justified in view of Section 145-A of Gujarat Local Authorities Law
Amendment in 2011 which amended the provisions of the Gujarat
_______________
https://www.mhc.tn.gov.in/judis
Page No. 18 of 28
W.P.(MD) No.11410 of 2024
Provincial Municipal Corporation Act, 1949.
40. A similar provision is conspicuously absent in the Madurai
City Municipal Corporation Act, 1971. The provisions of the Tamil
Nadu Urban Local Bodies Act, 1998 also contains the similar provision
for levying of property tax specifically the property under Section 82 of
the Tamil Nadu Urban Local Bodies Act, 1998 as in force from
13.04.2023. Thus, property tax is leviable on all lands, buildings,
telecommunication towers and storage structure. Section 82 reads as
under:-
Section 82 – Levy of property tax.—
(1) The property tax shall be levied on all lands,
buildings, telecommunication towers and
storage structures built on, or attached to, land
within the municipality.
(2)(a) In relation to any building newly constructed or
where any addition or alteration has been
made to any existing building, the owner or
occupier of such buildings ;
b) where the title of any building or land is
transferred, such transferee ; and
(c) in relation to any building or land, in the event
of death of the person primarily liable to the_______________
https://www.mhc.tn.gov.in/judis
Page No. 19 of 28
W.P.(MD) No.11410 of 2024payment of property tax, the person on whom
the property is transferred, shall furnish to the
Commissioner within such date as may be
prescribed, a return for such building or land
containing such details as may be prescribed
for the assessment or reassessment of the
property tax to the said building or land.
(3) In the case of reassessment or general revision
of any property tax leviable under this Act, the
owner or occupier of any building or land shall
furnish to the Commissioner within such time
as may be prescribed, a return in such form
containing such details as may be prescribed
for the assessment of property tax to such
building or land.
(4) If any owner or occupier of any building or
land fails to furnish a return as required under
sub-section (2) or sub-section (3) or furnishes
an incomplete or incorrect return, the
Commissioner or any person authorised by him
in this behalf, shall cause an inspection to be
made and also to make such local enquiries as
may be considered necessary, and based on
such inspection and information collected,
shall prepare a return and a copy of the return
shall be furnished to the owner or occupier of
the building or land.
(5) On receipt of a return under sub-section (2) or
sub-section (3) or on the basis of the return
prepared by the Commissioner under sub-
section (4) and after considering the
objections, if any, received, the Commissioner
shall determine the property tax payable in
accordance with the provisions of this Act and
shall send an intimation to that effect to the
person concerned.
_______________
https://www.mhc.tn.gov.in/judis
Page No. 20 of 28
W.P.(MD) No.11410 of 2024
(6) In the case of failure to furnish a return under
sub-section (2) or under sub-section (3), the
Commissioner shall, in addition to the tax
determined under sub-section (5), direct the
owner or occupier of any building or land to
pay by way of penalty a sum of rupees two
thousand or five percent of the property tax
determined under sub-section (5), whichever is
higher.
(7) For the purpose of assessment of property tax
for any building or land in the municipality,
the Commissioner or any officer authorised by
him in this behalf may enter, inspect, survey
and measure any building or land, after giving
due notice to the owner or occupier before
such inspection and the owner or occupier
shall be bound to furnish necessary
information required for this purpose.
(8) The property tax on building and land shall,
subject to the prior payment of the land
revenue, if any, due to the Government thereon,
be a first charge upon the said building or land
and upon the movable property, if any, found
within or upon such building or land and
belonging to the person liable to pay property
tax.”
41. Under Section 120 of the Madurai City Municipal
Corporation Act, 1971, if the council by resolution determines that a
property tax for general purposes shall be levied, such tax shall be levied
_______________
https://www.mhc.tn.gov.in/judis
Page No. 21 of 28
W.P.(MD) No.11410 of 2024
on all “buildings” and “lands” within the City save those exempted by or
under this Act or any other law. Section 120 of the Madurai City
Municipal Corporation Act, 1971 reads as under:
“120. Description of property tax.—
(1) If the council by resolution determines that a
property tax for general purposes shall be
levied, such tax shall be levied on all buildings
and lands within the City save those exempted
by or under this Act or any other law.”
42. Under Section 120 of the Madurai City Municipal Corporation
Act, 1971, Tax can be levied only on “buildings” and “land”.
43. Section 2(4), of the Madurai City Municipal Corporation Act,
1971 defines the expression ‘building’. Similarly, Section 2(3) of Madurai
City Municipal Corporation Act, 1971 defines the expression “ land”.
44. These the definition in the Madurai City Municipal
Corporation Act, 1971 reads as under:-
_______________
https://www.mhc.tn.gov.in/judis
Page No. 22 of 28
W.P.(MD) No.11410 of 2024Section 2(4) Section 2(30 )
(4) “Building” includes – “land” includes land which
is being built upon or is
(a) a house, out-house, stable, built upon or covered with
latrine, godown, shed, hut, water,benefits to arise out
wall and any other structure of land,things attached to
whether of masonary, bricks, the earth of permanently
mud, wood, metal or any fastened to anything
other material whatsoever; attached to the earth and
rights created by legislative
(b) a structure on wheels or enactment over any street;
simply resting on the ground
without foundations; and
(c) a ship, vessel, boat, tent, van
and any other structure used
for human habitation or used
for keeping or storing any
article or
45. The definition of building as in Section 2(4) of Madurai City
Municipal Corporation Act, 1971 clearly did not include mobile
telecommunication towers. Only for the first time under the provisions of
the Tamil Nadu Urban Local Bodies Act, 1998, as it came into force
with effect from 13.04.2023, a charging proviso in the form under Section
82 of the Act, made it possible for levy of property tax on
telecommunication towers.
46. It is evident that there was no independent charging provision
_______________
https://www.mhc.tn.gov.in/judis
Page No. 23 of 28
W.P.(MD) No.11410 of 2024
for levying property tax on the “mobile towers” “telecommunication
towers” under the provisions of the Madurai City Municipal
Corporation Act, 1971. Therefore, independent of such a provision for
charging tax on “mobile towers” under the provisions of the Madurai
City Municipal Corporation Act, 1971, the respondent/Madurai
Corporation was not entitled to demand property tax on towers on the
strength of Section 120 of the Madurai City Municipal Corporation
Act, 1971.
47. The word definition of “buildings” and “lands” in Section 82
were substituted with the expression ‘lands, buildings,
“Telecommunication Towers” and “storage structures” built on, or
attached to, land’ by Tamil Nadu Act, 35 of 2022 with effect from
13.04.2023. More or less, the method of determination of tax is similar
under new dispensation under the provisions of Tamil Nadu Urban
Local Bodies Act, 1988.
48. Therefore, the impugned demand made for the period during
which property tax was payable on “building” under the provisions of the
_______________
https://www.mhc.tn.gov.in/judis
Page No. 24 of 28
W.P.(MD) No.11410 of 2024
Madurai City Municipal Corporation Act, 1971, cannot extend to levy
of property tax on the“telecommunication towers”.
49. This would however not prejudice the rights of the official
Respondents to levy the property tax on the building on its annual rental
value as was contemplated under the provisions of the Madurai City
Municipal Corporation Act, 1971 by including the value of rents
received by the petitioner from renting of space for the erecting and
installation for operation of the Mobile Telecommunication network.
However, this would be subject to the period of limitation under the
prescribed Madurai City Municipal Corporation Act, 1971.
50. Therefore, it is held as follows:-
i) There is no scope for demanding property tax
independently on Mobile Telecommunication
towers under the provisions of the Madurai
City Municipal Corporation Act, 1971for
the Petitioner;
ii) However, the value of annual rent of the
buildings would include the rent received
from leasing of space for Mobile
Telecommunication Towers for computation
of annual value of building under the
provisions of the Madurai City Municipal
Corporation Act, 1971.
_______________
https://www.mhc.tn.gov.in/judis
Page No. 25 of 28
W.P.(MD) No.11410 of 2024
iii) Mobile Telecommunication towers are
separately liable to property tax under
Section 82 of the Tamil Nadu Urban Local
Bodies Act, 1998. However, Mobile
Telecommunication towers are not taxable in
the hands of the petitioner under Section 14
of the Telecommunication Act,2023.
iv) Mobile Telecommunication towers may be
liable to tax under the provisions of theTamil
Nadu Urban Local Bodies Act, 1998when
read in conjunction with Section 14 of
theTelecommunication Act,2023in the hands
of the of the fourth respondent for the period
after the commencement of said Tamil Nadu
Urban Local Bodies Act, 1998.
51. Under these circumstances, the impugned demand notices are
quashed and the cases are remitted back to the respondent to issue
separate demand for the period covered by the provisions of the Tamil
Nadu Urban Local Bodies Act, 1971, and to issue a revised demand notice
under the provisions of the Madurai city Municipal Corporation Act,
1971 after re-determining the annual rental value of building by including
the rentals received from the renting of the space in the building to the 4 th
Respondent for its Mobile Telecommunication Network under the
provisions of the Madurai city Municipal Corporation Act, 1971.
_______________
https://www.mhc.tn.gov.in/judis
Page No. 26 of 28
W.P.(MD) No.11410 of 2024
52. The demand under Madurai city Municipal Corporation Act,
1971 shall however be made subject to the period of limitation prescribed
under the Act as may be applicable to the provisions of the Tamil Nadu
Urban Local Bodies Act, 1998.
53. This writ petition stands disposed with the above directions. No
costs. Consequently, connected miscellaneous petition is closed.
05.09.2024
Index: Yes / No
Neutral Citation: Yes / No
Speaking Order / Non-Speaking Order
apd/kkd
To:
1. The District Collector,
Collectorate, Madurai 625 020.
2. The Commissioner,
Madurai City Municipal Corporation,
Anna Maligai,
Madurai 625 002.
3. The Assistant Commissioner,
Madurai City Municipal Corporation,
Zone-3, Central,
Madurai 625 001.
_______________
https://www.mhc.tn.gov.in/judis
Page No. 27 of 28
W.P.(MD) No.11410 of 2024
C.SARAVANAN, J.
apd/kkd
Pre-Delivery order made in
W.P.(MD) No.11410 of 2024
05.09.2024
_______________
https://www.mhc.tn.gov.in/judis
Page No. 28 of 28