Chapter VIII MUNICIPAL TAXATION.

(1) Subject to any general or special orders which the State Government may make in this behalf and to the provisions of sections 101 and 102, a municipality may impose for the purposes of this Act any of the following taxes, namely :-

(i) a tax on buildings or lands situate within the municipal borough to be based on the carpet area of the buildings or lands or both;

(ii) a tax on all vehicles, boats or animals used for riding, draught or burden and kept for use within the said borough, whether they are actually kept within or outside the said borough :

Provided that where a motor vehicle is kept for use within the said borough as well as another municipal borough, it shall be liable to be taxed only by the municipality within or nearest to, whose limits such vehicle is actually kept:

(iii) a toll on vehicles and animals used as aforesaid, entering the said borough but not liable to taxation under clause (ii) of this sub-section;

(v) a tax on dogs kept within the said borough;

(vi) a special sanitary cess upon private latrines, premises or compounds cleansed by municipal agency, after notice given as hereinafter required;

(vii) a general sanitary cess for the construction and maintenance of public latrines and for the removal and disposal of refuse;

(viii) a drainage tax;

(ix) a general water-rate or a special water-rate or both for water supplied by the municipality, which may be imposed in the form of a tax assessed on buildings and lands or in any other form, including that of charges for such supply, fixed in such mode or modes as shall be best adapted to the varying circumstances of any class of cases or of any individual case;

(x) a lighting tax;

(xi) a fee on pilgrims resorting periodically to a shrine within the limits of the municipal borough;

(xii) a special educational cess;

(xiii) a tax on sale of cattle in any market in the municipal borough whether established by the municipality or not, or in any place set apart as a market for such sale:

(xiv) a betterment levy on lands or buildings in an area under a scheme of slum clearance or redevelopment;

(xiv-a) subject to and in accordance with the provisions of the Gujarat State Tax on Professions, trades, Callings and Employments Act, 1976 (President’s Act No. 11 of 1976) and the rules made thereunder, a tax on professions, trades, callings and employments;

(xiv-a) a tax on mobile towers to be levied from the person engaged in providing telecommunication services through such mobile towers;

(xv) any other tax (not being a tax on payments for admission to any entertainment (or octroi)) which under the Constitution, the State Legislature has power to impose in the State :

Provided that no tax or toll shall be levied on motor vehicles save as provided in section 20 of the Bombay Motor Vehicles Tax Act, 1958:

Provided further that,-

(a) no tax imposed as aforesaid, other than a special sanitary cess, a drainage tax or a water-rate, shall, without the express consent of the Government, be leviable in respect of any building or part of any building or of any vehicle, animal or other property, belonging to Government and used solely for public purposes and not used or intended to be used for purposes of profit; and no toll shall be leviable in respect of any animal or vehicle used for the passage of troops or the conveyance of Government stores or of any other Government property, or for the passage of military or police officers on duty or the passage or conveyance of any persons or property in their custody;

(c) no tax described in clause (i) and imposed as aforesaid shall, without the express consent of the district panchayats or the taluka panchayat, be leviable in respect of any building or part of any building belonging to, or vesting in, such district panchayat or taluka panchayat and used solely for a public purpose and not used or intended to be used for purposes of profit;

(d) no special sanitary cess shall be leviable in respect of any private latrines, premises or compounds unless and until the municipality has—

(i) made provision for the cleaning thereof by manual labour, or for conducting or receiving the sewage thereof into municipal sewers, and

(ii) issued either severally to the person to be charged, or generally to the inhabitants of the borough or part of the borough to be charged with such cess, one month's notice of the intention of the municipality to perform such cleaning and to levy such cess;

(e) the municipality in lieu of imposing separately any two or more of the taxes described in clauses (i), (vii), (ix) and (x) except a special water rate may impose a consolidated tax assessed as a tax on buildings or lands or both situated within the municipal borough.

(2) Nothing in this section shall authorize the imposition of any tax which the State Legislative has no power to impose in the State under the Constitution.

(1) For the purposes of clause (i) of sub-section (1) of section 99, the tax shall, subject to such exceptions, limitations and conditions hereinafter provided, be levied annually on the buildings or lands situate in the municipal borough area at such rate per square metre of the carpet area of buildings and of the area of lands (hereinafter to as “the rate of tax”) as the municipality may determine having regard to the factors as the State Government may president by rules.

(2) For the purpose of levy of tax on buildings or lands situate within the municipal borough under sub-section (1),-

(a) the buildings may be classified into residential buildings and buildings other than the residential buildings; and

(b) the municipality may determine one rate of tax for residential buildings and the other than rate of tax for buildings other than the residential buildings :

Provided that it shall be lawful for the municipality to determine for residential buildings, the carpet area of which does not exceed forty square metres, such rate of tax as is lower than the rate of tax determined for residential buildings generally :

Provided further that the rates of tax per square metre of carpet area shall be decided by municipality with the approval of the Director of Municipalities.

(3) In lieu of the tax leviable under sub-section (1) read with sub-section (2), there shall be levied annually on,-

(a) residential hunts, and

(b) residential tenements in a chawl, each such tenement having carpet area not exceeding twenty-five square metres,

such amount of tax as the Municipality may determine :

Provided that the amount so determined shall not be less than such amount as the State Government may, by notification in the Official Gazette, specify.

Explanation.- For the purpose of levy of tax under this section, where an addition is made to an existing building whereby the carpet area of that building is increased, such addition shall be treated as a separate building and the length of the time of its existence shall be computed from the year in which the addition is made.

(1) The Government or the district panchayat or the taluka panchayat concerned shall pay to the municipality annually in lieu of tax on buildings from which the buildings vesting in Government or in district panchayats or taluka panchayats are exempted by clause (a) of the proviso to sub-section (1) of section 99, a sum ascertained in the manner provided in sub-section (3).

(2) [Deleted]

(3) The sum to be paid annually to the municipality by the Government or the panchayat concerned shall be eight tenths of the amount which would be payable by an ordinary owner of buildings in the said borough on account of the said tax on buildings on the basis of carpet area of the buildings.

A municipality before imposing a tax shall observe the following preliminary procedure:-

(a) It shall, by resolution passed at a general meeting, select for the purpose one or other of the taxes specified in section 99 and approve rules; prepared for the purposes of clause (1) of section 271 prescribing the tax selected, and in such resolution and in such rules specify :-

(i) the classes of persons or of property or of both, which the municipality proposes to make liable and any exemptions which it proposes to make;

(ii) the amount or rate at which the municipality proposes to assess each such class;

(iii) in the case of a tax on buildings or lands or the both, the manner of assessment of such tax to be imposed;

(iv) all other matters which the State Government may require to be specified therein.

(b) When such resolution has been passed, the municipality shall publish the rules so approved with a notice in the form of Schedule I prefixed thereto.

(c) Any inhabitant of the municipal borough objecting to the imposition of the said tax or to the amount or rate proposed or to the classes of persons or property to be made liable thereto or to any exemptions proposed may, within one month from the publication of the said notice, send his objection in writing to the municipality; the municipality shall take all such objections, into consideration, or shall authorize a committee to consider the same and report thereon; and unless it decides to abandon the proposed tax, shall submit such objections with his opinion thereon and any modifications proposed in accordance therewith, together with the notice and rules aforesaid to the State Government.

Power to sanction, modify and impose conditions. The State Government may refuse to sanction the rules submitted under section 101, or may return them to the municipality for further consideration; or if no objection or no objection which is in its opinion sufficient, was made to the proposed tax within the period prescribed under section 101, may sanction the said rules without modification, or subject to such modifications not involving an increase in the amount to be imposed, as it deems fit.

Rules sanctioned under section 103 [sic] with the modifications if any, subject to which the sanction is given shall be published by the municipality in the municipal borough, together with a notice reciting the sanction and the date and serial number thereof; and the tax as prescribed by the rules so published shall, from a date which shall be specified in such notice and which shall not be less than one month from the date of publication of such notice, be imposed accordingly :

Provided that-

(a) a tax leviable by the year shall not come into force except on one of the following days, namely, the first day of April, the first day of July, the first day of October or the first day of January in any year; and if it comes into force on any day other than the first day of April, it shall be leviable by the quarter till the first day of April then next ensuing ;

(b) on or before the day on which a notice is issued under this section, the municipality shall publish such further detailed rules as may be required and as may have been approved by the State Government under clause (a) of the proviso to section 271, prescribing the mode of levying, and recovering the tax herein specified and the dates on which it or the instalments, if any, thereof shall be payable :

(c) if the levy of a tax, or of a special portion of a tax, has been sanctioned for a fixed period only, the levy shall cease at the conclusion of that period, except so far as regards unpaid arrears which may have become due during that period.

(1) The State Government may, by notification in the Official Gazette, empower any municipality to levy any tax or to increase or reduce the amount or rate of any tax levied under section 99 within such maximum and minimum limits either as to he amount or the rate as may be specified in such notification.

(2) Notwithstanding any resolution or rule under section 101 specifying the amount or rate at which such tax is leviable, any municipality empowered under sub-section (1) may, by a resolution passed at a general meeting decide to levy such tax or increase or reduce the amount or rate at which such tax is leviable.

(3) When a municipality has by a resolution passed under sub-section (2) decided to levy any tax or to increase or reduce the amount or rate at which any tax is leviable, the municipality shall publish in the municipal borough the resolution together with notice specifying a date, which shall not be less than one month from the date of publication of such notice, from which the tax shall be levied or the amount or rate at which any tax is leviable shall be increased or reduced. The tax shall thereupon be levied or, as the case may be, the amount or rate thereof shall be increased or reduced from the date specified in such notice.

(1) When a tax on building or land or both is imposed, the chief officer shall cause an assessment list of all buildings or lands or lands and buildings in the municipal borough to be prepared containing-

(a) the name of the street or division in which the property is situate;

(b) a description of the property sufficient for identification;

(c) the names of the owner and occupier, if known;

(d) the assessment based on the carpet area and of the area of land of the property made in accordance with sub-section (1) of section 99A; and

(e) the amount of the tax assessed thereon.

(2) In assessing a tax on buildings or lands, where the assessment determined under clause (d) of sub-section (1), a sum equal to ten percentum of the said assessment shall be deducted there from in lieu of all allowance for repairs or on any other account whatsoever.

(3) For the purpose of preparing such assessment list, the chief officer or any person acting under his authority may inspect any building or land in the municipal borough and on the requisition of the chief officer, the owner or occupier of any such building or land shall, within such reasonable period as shall be specified in the requisition, be bound to furnish a true return, to the best of his knowledge or belief and subscribed with his signature, of the name and place of abode of the owner or occupier or of both and the carpet area of such building and the area of land.

(1) Person primarily liable of a tax on buildings or lands or both how to be designated if his name cannot be ascertained. (2) Occupier liable for tax on buildings or lands or both until he gives information. (1) When the name of the person primarily liable for the payment of a tax on building or land or both in respect of any premises cannot be ascertained, it shall be sufficient to designate him in the assessment book, and in any notice which it may be necessary to serve upon the said person under this Act, "the holder", of such premises, without further description.

(2) If, in any such case, any person in occupation of the premises shall refuse to give such information as may be requisite for determining who is primarily liable as aforesaid, such person shall himself be liable, until such information is obtained, for all taxes on buildings or lands or both leviable on the premises of which he is in occupation.

When the assessment list has been completed, the chief officer shall give public notice thereof and of the place where the list or a copy thereof may be inspected; and every person claiming to be either the owner or occupier of property included in the list, and any agent of such person, shall be at liberty to inspect the list and to make extracts therefrom without charge.

(1) Public notice of time fixed for lodging objections. (2) Objections how to be made. (3) Hearing of objections. (4) Authentication of list. (5) Custody and inspection of list. (6) Authenticated list how far conclusive. (1) The chief officer, shall at the time of the publication of the assessment list under section 107, give public notice of a date not less than one month after such publication, before which objection to the assessment in such list shall be made; and in all cases in which any property is for the first time assessed or the assessment is increased on account of a change in the carpet area he shall also give notice thereof to the owner or occupier of the property if known, and if the owner or occupier of the property is not known, he shall affix the notice in a conspicuous position on the property.

(2) Objections to the assessment of any property in such list shall, if the owner or occupier of such property desires to make an objection, be made by such owner or occupier or any agent of such owner or occupier to the executive committee before the time fixed in the aforesaid public notice, by application in writing, stating the grounds on which the assessment is disputed; all applications so made shall be registered in a book to be kept by the executive committee for the purpose.

(3) The executive committee, after allowing the applicant an opportunity of being heard in person or by agent, shall-

(a) investigate and dispose of the objections,

(b) cause the result thereof to be noted in the book kept under sub-section (2), and

(c) cause any amendment necessary in accordance with such result to be made in the assessment list:

Provided that before any such amendment is made the reasons thereof shall be recorded in the book kept under sub-section (2):

Provided further that powers and duties of the executive committee under this sub-section may be transferred to any other committee appointed by the municipality or with the permission of the Development Commissioner, to any officer or pensioner of the Government.

(4) As and when in respect of any property the objections made under this section have been disposed of and the amendments required by sub-section (3) have been made in the assessment list, the said list so far as such property is concerned shall be authenticated by the signature of the chairman and at least one other member of the executive committee, or if the executive committee's powers and functions under sub-section (3) have been transferred to any other committee or to an officer or pensioner of the Government, by the signatures of not less than two members of such committee or of the officer or pensioner aforesaid; the person or persons so authenticating the list shall certify that no valid objection has been made to the assessment of the property contained in the list except in the cases in which amendments have been made therein.

(5) The list so authenticated shall be deposited in the municipal office, and shall there be open inspection during office hours to all owners and occupiers of property entered therein or to the agents of such persons, and a notice that it is so open shall be forthwith published.

(6) Subject to Such alternation as may be made therein under the provisions of section 109 and to the result of any appeal or revision made under section 138 the entries in the assessment-list so authenticated and deposited and the entries, if any inserted in the said list under the provisions of section 109 shall be accepted as conclusive evidence-

(i) for the purposes of all municipal taxes, of the assessment under clause (d) of sub-section (1) of section 105, regulating the tax on buildings, lands and both, the buildings and lands to which such entries respectively refer, and

(ii) for the purpose of the tax for which such assessments-list has been prepared, of the amount of the tax leviable on such buildings or lands or both buildings and lands in any official year in which such list in force.

(1) Amendment of assessment list. Notice of new buildings. (2) Objection how dealt with. (3) Effect of amendment. (1) The executive committee may at any time alter the assessments-list by inserting or altering an entry in respect of any property, such entry having been ommitted from or erroneously made in the assessment-list through fraud, accident or mistake or in respect of any building constructed, altered, added to or reconstructed in whole or in part where such construction, alteration, addition or reconstruction has been completed after the preparation of the assessment list after giving notice to any person interested in the alteration of the list of a date not less than one month from the date of service of such notice, before which any objection to the alteration should be made.

(2) An objection made by any person interested in any such alternation before the time fixed in such notice and in the manner provided by sub-section (2) of section 108 shall be dealt with in all respects as if it were an application under the said section.

(3) An entry or alteration made under this section shall subject to the provisions of section 138, have the same effect as if it had been made in the case of a building constructed, altered, added to, or reconstructed on the day on which such construction, alteration, addition or reconstruction was completed or on the day on which the new construction, alteration, addition or reconstruction was first occupied whichever first occurs, or in other cases on the earliest day in the current official year on which the circumstances justifying the entry or alteration existed; and the tax or the enhanced tax, as the case may be, shall be levied in

(1) When any building or any portion of a building which is liable to the payment of a tax on building or lands or both is demolished or remove, otherwise than by order of the executive committee, the person primarily liable for the said payment of the tax shall give notice thereof in writing to the chief officer.

(2) Until such notice is given the person aforesaid shall continue to be liable to pay every such tax as he would have been liable to pay in respect of such building, if the same, or any portion thereof, had not been demolished or removed.

(3) Nothing in this section shall apply in respect of a building or portion of a building which has fallen down or been burnt down.

(1) It shall not be necessary to prepare a new assessment-list every year. Subject to the condition that the assessment-list shall be completely revised every four years, the chief officer may adopt the assessment contained in the list for any year, with such alteration as may be deemed necessary, for the year immediately following.

(2) But the provisions of sections 107, 108 and 109 shall be applicable every year as if a new assessment list had been completed at the commencement of the official year.

Power of State Government to appoint person to authenticate list in case of default by municipality. (1) When in any year a new assessment-list is prepared or a list is revised or the assessment contained in the list for the year immediately preceding is adopted with or without alteration, such new revised or adopted assessment list shall be authenticated in the manner provided by section 108 at any time not later man the thirty-first day of July of the official year to which the list relates, and if it is not so authenticated, then the State Government, shall appoint such person or persons as it minks fit to prepare, revise of adopt and authenticate the assessment list and thereupon such person or persons shall duly prepare, revise or adopt or, as the case may be, authenticate such list at any time before the last day of the official year to which such list relates, and sections 105 to 108 or section 111 shall, so far as may be necessary, apply to the preparation, revision or adoption of the list, as the case may be, by the person or persons appointed by the State Government to authenticate the list.

(2) Where the State Government appoints any person or persons for the purpose of preparing, revising or adopting and authenticating an assessment list under sub-section (1), the expenses incurred by such person or persons for such purpose and the reasonable remuneration payable to such person or persons shall be recovered by the State Government in the manner provided by section 262.

(1) Subject to the provisions of sub-section (6), a tax imposed in the form of a tax on buildings or land or both shall be leviable primarily from the actual occupier of the property upon which the tax is assessed if he is the owner of the property, or holds it on a building or other lease from the Government or from the municipality, or on a building lease from any person, otherwise the tax shall be primarily leviable as follows, namely:-

(a) if the property is let, from the lessor;

(b) if the property is sublet, from the superior lessor;

(c) if the property is unlet, from the person in whom the right to let the same vests :

Provided that the tax due in respect of buildings vesting in the Government and occupied by the servants of the Government or other persons on payment of rent shall be leviable primarily from the Government.

(2) Where any land has been let for any term exceeding one year to a tenant and such tenant or any person deriving title howsoever from such tenant has built upon such land, the tax assessed upon the said land shall be leviable from the lessor and the tax assessed upon the building erected thereon shall be leviable primarily from the said tenant or person, whether or not the premises be in the occupation of the said tenant or person.

Notice to be given to the chief officer of all transfers of title of person primarily liable to payment of tax on buildings or lands. (1) Whenever the title of any person primarily liable for the payment of a tax on building or lands or both to or over such buildings or land or both is transferred, the person whose title is so transferred and the person to whom the same is transferred shall, within three months after execution of the instrument of transfer, or after its registration if it be registered, or after the transfer is effected, if no instrument be executed, give notice of such transfer in writing to the chief officer.

(2) In the event of the death of any person primarily liable as aforesaid, the person to whom the title of the deceased shall be transferred as heir or otherwise, shall give notice of such transfer to the chief officer within one year from the death of the deceased.

(3) If the person liable to give the notice referred to in sub-section (1) or sub-section (2), fails to give such notice he shall be punished with fine which may extend to fifty rupees.

(1) The notice to be given under section 115 shall be in the form so specified in Schedule II or Schedule III, as the case may be, and shall state clearly and correctly all the particulars required by the said form.

(2) On receipt of any such notice, the chief officer may, if he thinks it necessary, require the production of the instrument of transfer, if any, or a copy thereof, obtained under section 57 of the Indian Registration Act, 1908.

(1) Every person primarily liable for the payment of a tax on building or land or both who transfers his title to or over such building or land or both without giving notice of such transfer to the chief officer as aforesaid shall, in addition to any other liability which he incurs through such neglect, continue to be liable for the payment of the said tax on the buildings or lands or both until he gives such notice, or until the transfer shall have been recorded by the executive committee.

(2) But nothing in this section shall be held to diminish the liability of the transferee for the said tax or to affect the prior claim of the municipality on the said building and land conferred by section 140, for the recovery of the tax on the buildings or land or both.

(3) Power to charge fees.

(3) Power to charge fees.

(1) When any licence is granted under this Act, or when permission is given thereunder for making any temporary erection or for putting up any projection, or for the temporary occupation of any public street or other land vested in the municipality, the authority grating or giving such licence or permission may charge a fee for the same :

Provided that when permission is given for putting up a projection, the authority giving such permission may charge every year a recurring fee until the projection is removed.

(2) The municipality may charge a higher fee by way of penalty for any erection, or projection, or for the use or occupation of any public street or other land vested in the municipality, by any person without its permission or licence. Such fee shall be leviable irrespective of any other penalty or liability to which the person liable to pay the same may be subject under any other provision of this Act or any other law for the time being in force.

The rates of such higher fees shall be determined by rules.

(3) A chief officer may also charge such fees as may be fixed by bye-laws under clause (a) of sub-section (1) of section 275 for the use of any such places mentioned in that clause as belong to the municipality.

(1) Fixed charges and agreements for payment in lieu of taxes for water supplied. (2) Power to fix a special rate in lieu of special sanitary cess. (3) Power to compound tax on vehicles or animals. (4) Recovery of sums claimed under this section. (4) Special provisions relating to certain taxes.

(1) A municipality may, instead of imposing a water-rate or where a water-rate has been imposed in individual cases, instead of levying a rate imposed in respect of the supply of water belonging to the municipality to or for use in connection with any private lands or buildings,-

(a) fix at rates not exceeding such as shall be specified in the rules in force under section 271, charges for such supply according to the quantity used, as ascertained by measurement; or

(b) arrange with any person on his application to supply on payment, periodical or otherwise, water belonging to the municipality in such quantities, or for such purposes, whether domestic, ornamental, or irrigational or for trade, manufacture or any other purpose, on such terms and subject to such conditions as it shall fix by agreement with such person :

Provided that -

(a) the meters, connection-pipes and all other works necessary for and incidental to such supply, and all repairs, extensions and alteration of such works shall be under the control of the municipality and the expense thereof shall, so far as it is not inconsistent with the rules or bye-laws of the municipality, to be defrayed by the persons liable for the charges or payments fixed in respect of such supply; and

(b) such supply of water shall be and shall be deemed to have been granted, subject to all such conditions as to the limit or stoppage thereof and as to the prevention of waste or misuse, as are prescribed in the bye-laws for the time being in force under section 275.

(2) Where a municipality has made provision for the cleansing of any factory, hotel or club or any group of buildings or lands used for any one purpose and under one management, it may, instead of levying in respect thereof any special sanitary cess imposed under this Chapter, fix a special rate and the dates and other conditions for periodical payments thereof; such rate, dates and conditions shall be determined either,

(i) in accordance with the rules for the time being in force under section 271, or

(ii) by written agreement with the person who would have been otherwise liable for the cess, provided that in fixing the amount of such rate proper regard shall be had to the probable cost to the municipality of the service to be rendered.

(3) Where a municipality has imposed a tax on vehicles or animals used for riding, draught or burden and kept for such use within the municipal borough, it may compound with the keeper of any livery-stable or of horses or vehicles kept for sale and hire for the payment of a lump sum for any period not exceeding one year at a time, in lieu of any amount which such keeper would otherwise have been liable to pay on account of the tax imposed as aforesaid.

(4) Every sum claimed by a municipality as due under sub-section (1) as charges, payments or expenses, or as a special rate under sub-section (2) or as a lump sum payable under sub-section (3), shall for the purposes of Chapter IX be deemed to be, and shall be recoverable in the same manner as, an amount claimed on account of a tax recoverable under the said Chapter :

Provided that nothing in this section shall affect the right or power of a municipality to contract with any person to supply for use beyond the limits of the municipal borough, at such rates and on such conditions as the municipality may think fit, any quantity of water belonging to the municipality but not required for the purpose of this Act.

Taxes on pilgrims may be assigned in part to panchayats. Where a tax is imposed under this Act on pilgrims resorting periodically to a shrine within the limits of a municipal borough, the Development Commissioner may require the municipality of such borough to assign and pay to the district panchayat or to the taluka panchayat having authority in the taluka in which such municipal borough is situate, or partly to the said district panchayat and partly to the said taluka panchayat, such portion of the total collections on account of such tax as he shall deem fit; and the portion so assigned shall be expended by the said panchayat or panchayats within the areas respectively, under their authority on works conductive to the health, convenience and safety of the said pilgrims.

Tables of tolls to be shown on demand. A municipality imposing any toll under this Act, shall cause to be kept at each place where such toll is to be collected, a table in the Gujarati, and in English language showing the amount leviable in all cases provided for in the rules including the terms, if any, on which the liability to pay such tolls may be compounded by periodical payments; and it shall be the duty of every person authorized to demand payment of a toll, to show such table on the request of any person form whom such demand is made.

(1) In the case of nonpayment on demand of any toll leviable by a municipality, any person appointed to collect such toll may seize any vehicle or animal on which the toll is chargeable or any part of the burden on such vehicle or animal which is of sufficient value to satisfy the demand, and may detain the same. He shall thereupon give the person in possession of the vehicle or animal seized, a list of the property together with a written notice in the form specified in Schedule VI;

(2) When any property seized is subject to speedy decay, or when expense of keeping it together with the amount of the toll chargeable is likely to exceed its value, the person seizing such property may inform the person in whose possession it was that it will be sold at once; and shall sell it or cause it to be sold accordingly unless the amount of toll demanded be forthwith paid.

(3) If at any time before a sale has begun, the person from whose possession the property has been seized, tenders at the municipal office the amount of all expenses incurred and of the toll payable, the chief officer shall forthwith deliver to him the property seized.

(4) If no such tender is made, the property seized may be sold, and the proceeds of such sale shall be applied in payment of such toll and the expenses incidental to the seizure, detention and sale.

(5) The surplus, if any of the sale-proceeds shall be credited, to the municipal fund, and may on application made to the chief officer in writing within three years next after the sale, be paid to the person in whose possession the property was, when seized, and if no such applications made, shall be the property of the municipality.

Power of State Government to suspend levy of objectionable taxes. (1) If it shall at any time appears to the State Government on complaint made or otherwise that any tax leviable by a municipality is unfair in its incidence or that the leavy thereof or of any part thereof is obnoxious to the interest of the general public, it may by order require the municipality, within such period as the State Government shall fix in this behalf to take measures for removing any objection which appears to it to exist to the said tax; and if within the period so fixed, requirement shall not be carried into effect to the satisfaction of the State Government, it may, by notification in the Official Gazette, suspend the levy of such tax, or of such part thereof, until such time as the objection thereto shall be removed:

Provided that no such order or notification shall be made unless the municipality is given opportunity to show cause as to why such order or notification should not be made.

(2) The State Government may at any time, by a like notification, rescind any suspension of tax made under sub-section (1).

Power of State Government to require municipalities to impose taxes. Where it appears to the State Government that the balance of the municipal fund or of a municipality is insufficient for meeting any expenditure incurred under section 259 or for the performance of any duties for the performance of which the State Government has directed the Development Commissioner to fix a period under section 262, the State Government may by notification require the municipality to impose, within the municipal borough, any tax specified in the notification which may be imposed under section 99 and which is not at the time imposed within the said borough or to enhance any existing tax in such manner or to such extent as the State Government considers fit; and the municipality shall forthwith proceed to impose or enhance, in accordance with the requisition, such tax under the provisions of this Chapter as if a resolution of the municipality had been passed for the purpose under section 101 :

Provided that-

(a) the State Government shall take into consideration any objection which the municipality or any inhabitant of the municipal borough may make against the imposition or enhancement of such tax;

(b) it shall not be lawful for the municipality to abandon or modify or to abolish such tax when imposed ;

(c) the State Government may at any time cancel or modify any requisition made by it under this section and the levy of the tax or the enhancement, except as to arrears theretofore accrued due, shall thereupon cease or be modified accordingly.

(1) Presentation of bill for taxes. (2) Contents of bill. (1) When any amount,--

(a) which by or under any provisions of this Act, is declared to be recoverable in the manner provided by this Chapter, or

(b) which, not being leviable under sub-section (1) of section 127 or payable on demand on account of a toll, is claimable as an amount or instalment on account of any other tax which now is imposed or hereafter may be imposed in any municipal borough,

shall have become due, the chief officer shall, with the least practicable delay, cause to be presented to any person liable for the payment thereof a bill for the sum claimed as due.

(2) Every such bill shall specify the period of which, and the property, occupation or thing in respect of which the sum is claimed and shall also give notice of the liability incurred in default of payment and of the time within which an appeal may be preferred as hereinafter provided against such claim.

(3) If the person to whom a bill has been presented as aforesaid does not, within fifteen days from the presentation thereof, either—

(a) pay the sum claimed as due in the bill, or

(b) show cause to the satisfaction of the chief officer why he is not liable to pay the same, or

(c) prefer an appeal in accordance with the provisions of section 138 against the claim,

the chief officer may cause to be served upon the person Liable for the payment of the said sum a notice of demand in the form specified in Schedule IV or to the like effect.

(1) If the person on whom notice of demand has been served under sub-section (3) of section 132 does not within fifteen days from the service of such notice pay the sum demanded in the notice—

(i) such sum with all costs of the recovery may be levied under a warrant signed by the Chief Officer in consultation with the president in the form specified in Schedule V or to the like effect by distress and sale of the movable property or the attachment and sale of immovable property of the defaulter, and

(ii) where the sum so demanded is on account of any tax levied in respect of water supply, sanitary service or any other service provided by the municipality under this Act, without prejudice to any other remedy for the recovery of the sum provided in this Act, it shall be lawful for the Chief Officer to discontinue the supply of water or the relevant service rendered to the defaulter until the sum so demanded together with the expenses incurred by the municipality in discontinuing and re-commencing the water supply or as the case may be, the service is paid to the municipality or recovered under this Chapter.

(2) Where any measures precautionary or otherwise, have been taken in respect of any such property for the recovery of any sum claimed by the State Government, any proceedings under this Chapter in respect of such property shall abate.

(3) (a) Where the property is in the municipal borough, the warrant shall be addressed to an officer of the municipality ;

(b) where the property is in another municipal borough, the warrant shall be addressed to the chief officer of that municipal borough ;

(c) where the property is within the limits of a Corporation other than that for the City of Ahmedabad, constituted under the Bombay Provincial Municipal Corporations Act, 1949, the warrant shall be addressed to the Municipal Commissioner of such Corporation;

(d) where the property is in a cantonment, the warrant shall be addressed to the executive officer of the cantonment;

(e) where the property is not within the limits of such Corporation or a municipal borough or cantonment, the warrant shall be addressed to a Government officer not lower in rank than a Mahalkari;

(f) where the property is in the City of Ahmedabad, the warrant shall be addressed to the Registrar of the Court of Small Causes of Ahmedabad :

Provided that such chief officer, Municipal Commissioner, executive officer, Government officer or Registrar may endorse such warrant to a subordinate officer.

(4) It shall be lawful for any officer to whom a warrant issued under sub-section (1) is addressed or endorsed, if the warrant contains a special order authorizing him in this behalf, to break open at any time between sunrise and sunset any outer or inner door or window of a building, in order to make any distress directed in the warrant, if he has reasonable grounds for believing that such building contains property which is liable to seizure under the warrant, and if after notifying his authority and purpose and duly demanding admittance he cannot otherwise obtain admittance :

Provided that such officer shall not enter or break open the door of any apartment appropriated for women, until he has given three hours' notice of his intention and has given such women an opportunity to remove themselves.

(5) It shall also be lawful for any such officer, if authorised by the warrant, to distrain, wherever it may be found, any moveable property or attach any immoveable property of the person named in the warrant issued under sub-section (1) as defaulter, subject to the following conditions, exceptions and exemptions, namely :-

(a) the following property shall not be distrained :-

(i) the necessary wearing apparel and bedding of the defaulter, his wife and children,

(ii) the tools of artizans,

(iii) when the defaulter is an agriculturist, his implements of husbandary, seed-grain, and such cattle as may be necessary to enable the defaulter to earn his livelihood;

(b) the property distrained shall be as nearly as possible equal in value to the amount recoverable under the warrant; and if any property has been distrained which, in the opinion of the chief officer or of the person to whom the warrant was addressed, should not have been so distrained, it shall forthwith be returned to the defaulter ;

(c) the officer shall on distraining or attaching the property forthwith make an inventory thereof and give to the person in possession thereof at the times of distraint or attachment a written notice in the form specified in Schedule VI;

(d) (i) when the property is immovable, the attachment shall be made by an order prohibiting the defaulter from transferring or charging the property in any way and all persons from taking any benefit from such transfer or charge;

(ii) the order shall be proclaimed at some place on or adjacent to the property by beat of drum or other customary mode, and a copy of the order shall be fixed on a conspicuous part of the property and then upon a conspicuous part of the municipal office, and also, when the property is land paying revenue to the State Government, in the office of the Collector of the district in which the land is situate;

(e) any transfer of or charge on the property attached or of any interest therein made without the written permission of the chief officer shall be void as against all claims of the municipality enforceable under the attachment. (a) the following property shall not be distrained :-

(i) the necessary wearing apparel and bedding of the defaulter, his wife and children,

(ii) the tools of artizans,

(iii) when the defaulter is an agriculturist, his implements of husbandary, seed-grain, and such cattle as may be necessary to enable the defaulter to earn his livelihood;

(b) the property distrained shall be as nearly as possible equal in value to the amount recoverable under the warrant; and if any property has been distrained which, in the opinion of the chief officer or of the person to whom the warrant was addressed, should not have been so distrained, it shall forthwith be returned to the defaulter ;

(c) the officer shall on distraining or attaching the property forthwith make an inventory thereof and give to the person in possession thereof at the times of distraint or attachment a written notice in the form specified in Schedule VI;

(d) (i) when the property is immovable, the attachment shall be made by an order prohibiting the defaulter from transferring or charging the property in any way and all persons from taking any benefit from such transfer or charge;

(ii) the order shall be proclaimed at some place on or adjacent to the property by beat of drum or other customary mode, and a copy of the order shall be fixed on a conspicuous part of the property and then upon a conspicuous part of the municipal office, and also, when the property is land paying revenue to the State Government, in the office of the Collector of the district in which the land is situate;

(e) any transfer of or charge on the property attached or of any interest therein made without the written permission of the chief officer shall be void as against all claims of the municipality enforceable under the attachment.

(1) When the property seized is subject to speedy and natural decay, or when the expense of keeping it in custody together with the amount to be levied is likely to exceed its value, the chief officer shall at once give notice to the person in whose possession the property was when distrained, to the effect that it will be sold at once; and shall sell it accordingly unless the amount named in the warrant be forthwith paid.

(2) If not sold at once under sub-section (1), the property distrained or attached or in the case of immovable property a sufficient portion thereof may, unless the warrant is suspended by the Chief officer or the sum due by the defaulter together with all costs incidental to the notice, warrant, and distress or attachment and detention of the property is paid, be, on the expiry of the time specified in the notice served by the officer executing the warrant, sold by public auction under the orders of the chief officer, and the proceeds or such part thereof as shall be requisite, shall be applied firstly in discharge of any sum due to the State Government in respect of such property and secondly in discharge of the sum due and of all such incidental costs as aforesaid. Where the sum due together with costs is paid by the defaulter as aforesaid, the attachment if any of immovable property shall be deemed to have been removed. Sales of immovable property under this sub-section shall be held in the manner laid down in the rules framed in that behalf.

(3) After sale of the immovable property by auction as aforesaid, the chief officer shall put the person declared to be the purchaser in possession of the same and shall grant him a certificate to the effect that he has purchased the property to which the certificate refers.

(4) It shall be lawful for the municipality to offer a nominal bid, in the case of any immovable property put up for auction provided the previous approval of the Collector is obtained to such bidding.

(5) The surplus, if any, shall be forthwith credited to the municipal fund, notice of such credit being given at the same time to the person in whose possession the property was at the time of distraint or attachment; if such person shall claim the surplus by written application to the chief officer within three years from the date of the notice given under this sub-section, the chief officer shall refund the surplus to such person. Any sum not claimed within three years from the date of such notice shall be the property of the municipality.