The Borough Municipalities (Validation of Certain Taxes on Building and Lands) Act, 1965

This Act may be called the Borough Municipalities (Validation of certain Taxes on Buildings and Lands) Act, 1965.

In this Act, unless the context requires otherwise,--

1. (a) "Boroughs Act" means the Bombay Municipal Boroughs Act, 1925;
2. (b) "Borough Municipality" means a municipality constituted under the Boroughs Act, and specified in the Schedule to this Act;
3. (c) "Chief Officer" means the Chief Officer of a Borough Municipality and includes any other officer of that municipality to whom the Chief Officer may delegate his powers in this behalf; and in the case of the Sholapur Borough Municipality, means the Municipal Commissioner of the successor Municipal Corporation of the City of Sholapur, and includes any other officer of that Corporation to whom the Commissioner may delegate his powers in this behalf;
4. (d) "House tax" means the tax on buildings and lands, by whatever name called, which a Borough Municipality was or is empowered to levy under clause
   • (i) of sub-section

1. (1) of section 73 of the Boroughs Act;
   • (e) "Provincial Corporations Act" means the Bombay Provincial Municipal Corporations Act, 1949;
   • (f) "Water tax" means the water rates, by whatever name called, which a Borough Municipality was or is empowered to levy in the form of a tax assessed on buildings and lands under clause
     • (x) of sub-section
2. (1) of section 73 of the Boroughs Act.

In the Boroughs Act,--

1. (a) in section 3, after clause (17), the following clause shall be inserted, and shall be deemed always to have been inserted, namely :-- "(17A) 'rate on buildings or lands' includes any tax imposed on buildings or lands ;";
2. (b) in section 75, for the Explanation at the end, the following Explanation shall be substituted, and shall be deemed always to have been substituted, namely :-- "Explanation.--For the purposes of a rate on buildings or lands, the basis of valuation may be--
   • (i) the annual letting value;
   • (ii) the annual value;
   • (iii) the floor area, in the case of Mills, Factories and buildings and lands connected therewith;
   • (iv) the capital value, in the case of vacant lands."

1. (1) Any house tax and any water tax levied or purported to be levied, and collected, in respect of any Mills, Factories and buildings and lands connected there- with, or in respect of any vacant lands, under the Boroughs Act and rules made thereunder, at any time before the commencement of this Act shall be deemed to have been levied and collected by or under the Boroughs Act as amended by this Act; and accordingly notwithstanding anything in any judgment, decree or order of any Court any such house tax or water tax levied and collected shall, for all purposes, be deemed to be, and always to have been, validly levied and collected, and shall not be called in question merely on the ground that the tax was not levied on the basis of the annual letting value, or was levied on the basis of capital value or a percentage on such value, or on the ground that any procedure laid down in the Boroughs Act or in the rules was not followed.
2. (2) Anything done or any action taken, by or on behalf of any Borough Municipality or any officer of such Municipality, acting or purporting to act under the provisions of the Boroughs Act or any rules made thereunder, for or in connection with the levy or collection of the said taxes, shall be deemed for all purposes to have been validly done, or taken; and no suit or other legal proceedings whatsoever shall be entertained or continued in any Court on any or all of the grounds mentioned in sub-section (1).

1. (1) Notwithstanding anything contained in the Boroughs Act, the Provincial Corporations Act or the Limitation Act, 1963, or in any judgment, decree or order of a Court, if any sum, by way of any tax referred to in the last preceding section to be levied or purported to be levied has not been paid to the Borough Municipality or, as the case may be, the successor Municipal Corporation (hereinafter in this section referred to as “the local authority”), such tax shall be payable to the local authority concerned within thirty days of a demand being made therefor, as hereinafter by this section provided : Provided that, the liability of any person to pay tax on such demand shall not extend—
   • (a) where the local authority has before the commencement of this Act discontinued to levy it on any basis referred to in the Explanation to section 75 of the Boroughs Act as amended by this Act other than the basis of annual letting value— to any period prior to six years immediately preceding the date of such discontinuance ;
   • (b) in other cases, to any period prior to six years immediately preceding the date of commencement of this Act.
2. (2) As soon as may be after the commencement of this Act, but before the expiry of three years therefrom, the Chief Officer of the local authority concerned, shall cause to be served on the person liable to pay any such tax, a bill for the sums due from him.
3. (3) The Chief Officer may prepare and serve a consolidated bill for all the taxes due from the person liable, or he may prepare separate bills in respect of different taxes or for different periods, or for different properties, in such form or forms, as he may determine. Every such bill shall, however, specify the period or periods for which the tax is due, the property or the service in respect of which the tax is payable, the amount of tax assessed thereon or in respect thereof, the amount (if any) already paid, and the balance due, and also the time within which an appeal may be preferred as provided in the next succeeding sub-section. (4)
   • (a) An appeal shall lie in respect of any claim made under sub-section (1), within thirty days of the service of the bill for the taxes, to the Judicial Magistrate or Bench of such Magistrates by whom under the direction of the Sessions Judge such class of cases is to be tried, on any one or more of the following grounds, that is to say,—
     • (i) that the appellant is not the person liable for the payment of the tax in respect of the property or service in question in that he was neither the owner nor the occupier of the property during any period of tax ;
     • (ii) that the property is exempt from tax ;
     • (iii) that the floor area adopted, or the capital value determined, or the amount of the tax, is not correct.
   • (b) The decision of the Magistrate or Bench of Magistrates in any appeal made under the last preceding clause shall, on an application made by either party within thirty days from the date of the decision, be subject to revision by the Court to which appeals against the decision of such Magistrate or Bench ordinarily lie.
4. (5) Save as otherwise provided in this section, the provisions of the Boroughs Act and in the case of the Sholapur Borough Municipality, of the Provincial Corporations Act and the rules and orders made or deemed to be made under the relevant Act and for the time being in force shall, mutatis mutandis, apply to the service of any bills and the recovery of any sum claimed and any appeal or revision application made under this section.

Nothing in this Act shall render any person liable to be convicted of any offence in respect of any act done by him, or in respect of anything omitted to be done by him, before the commencement of this Act, if such act or omission was not an offence but for the provisions of this Act.