CWP-10296-2008 (O&M) 217 CWP-10296-2008 (O&M) Dev Samaj College of Education, Sector 36-B, Chandigarh ...... Petitioner Versus Municipal Corporation through Commissioner & anr. ..... Respondents CORAM : HON'BLE MR.JUSTICE PANKAJ JAIN *** Present :- Mr. Luvraj Dhindsa, Advocate for the petitioner. Mr. Sanjiv Ghai, Additional Standing Counsel with Mr. Manpreet Singh, Advocate for respondent No.1. *** PANKAJ JAIN, J. (ORAL) 1 By way of present writ petition, the petitioner has challenged the notification dated 22.11.2004 (Annexure P-2) issued by the Chandigarh Administration imposing property tax on the Private Aided Educational Institutions. 2 On 17.11.2014, this Court passed the following order :- “In pursuance of order dated 04.11.2014, Mr. Vivek Partap Singh, IAS, Commissioner, Municipal Corporation, Chandigarh is present today and states that he will ensure the counsel engaged by the Corporation appears in their respective cases. CM-13949-CWP of 2014 seeking exemption from appearance of the Commissioner for today is disposed of as infuctuous. POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) It has been informed by the learned counsel appearing on behalf of the Municipal Corporation that operation of the judgment passed in CWP No. 6651 of 2007 titled "St. Xavier's Sr. Sec. School. Sector 44, Chandigarh and others vs. Municipal Corporation through its Commissioner, Sector 17, Chandigarh and another" has been stayed and the matter is listed for regular hearing before the Division Bench of this Court. On request, adjourned to 05.01.2015. Presence of Mr. Vivek Partap Singh, IAS, Commissioner, Municipal Corporation, Chandigarh is not required.” On 29.04.2024, the following order was passed :- “Learned counsel for the petitioner has submitted that this case was adjourned and to be listed after the decision in LPA No.147 of 2011 vide order dated 16.02.2015. He has submitted that LPA has been allowed by the Hon'ble Division Bench of this Court vide order dated 09.08.2019. Learned counsel for respondent No.1 prays for some time to go through the judgment passed in LPA No.147 of 2011 and address the arguments. In view of his request, adjourned to 05.09.2024 for arguments.” Learned counsel appearing for respondent No.1 has produced a copy of the judgment passed by LPA Bench in Municipal Corporation, UT, Chandigarh & ors., Vs. Shri Guru Gobind Singh College of Pharmacy & ors., 2019 (4) RCR (Civil) 390. LPA Bench in its judgment framed following questions :- “30. The first question for consideration is whether in terms of the resolution dated 29.1.2003 tax was levied only on Commercial including industrial land and buildings etc. as held by the Ld. Single POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) Judge and therefore the notification dated 22.11.2004 specifying the tax for `institutional lands and buildings' which includes private schools as per the notified Bye-laws and Self Assessment Scheme is to that extent illegal. 31. The second question which is intimately connected with the first is whether the notified Bye-laws and the Self Assessment Scheme can be said to have been framed by the Corporation as is required under Section 399 and as such is legal or have they been framed by the Administrator and are hence illegal being not authorised by the Act.” The same have been answered as under :- “52. From this it is clear that the properties which formed part of Annexure 4 were intended to be taxed. This group specifically included commercial buildings constructed on sites earmarked for Private Schools/ colleges. 53. The House approved the Bye-Laws with as many as eight amendments namely: "1. War widows, war heroes, freedom fighter or any other persons, who have sacrificed their lives for the nation shall be exempted from the payment of property tax. 2. Booths which have been allotted by the Chandigarh Administration under rehabilitated schemes shall be charged Rs.20/- per month as property tax instead of Rs.50/- per month contained in the proposal. 3. The persons, who are doing business in colonies shall be given exemption from payment of property tax for 5 years. 4. Rateable value for building in the Industrial Area shall be reduced by 30% 5. If any portion of residential building is used for shop or any other commercial activity the expected let out rate for the portion so used shall be at par with the properties situated in group 5 of the proposal. 6. All government lands and buildings shall be brought under Zone 'B' instead of Zone 'C'. POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) 7. Clause No.6 shall be read as 'the declaration filed by assessee shall be accepted as final. Nevertheless the Commissioner shall order such offers to scrutiny at random 5% of the self assessment made by the assessee and after scrutinizing , it it is found that the declaration made by the assessee is less than amount of tax paid/payable by him for that year, such officer after giving such persons a reasonable opportunity of being heard shall direct the assessee, in writing to pay a penalty, in addition to the tax payable, which shall be double the amount of such difference of tax payable.' 8. The area of Petrol Pump in respect of which property tax is to levied shall be clearly demarcated." 54. It is thus evident that the properties which were within the ambit of the draft Bye-laws and the Self Assessment Scheme for taxation and which the General House of the Corporation desired to exempt were specifically exempted by making specific amendment to the Bye-Laws and the Self Assessment Scheme. No such exemption was made in respect of the properties constructed on sites earmarked for Private Schools/ colleges though they were clearly mentioned in Annexure 4 and rates for them were specified in Group V of Annexure I. 55. The inescapable conclusion thus can only be that tax was levied/ imposed by the Corporation on buildings constructed on the sites earmarked for Private Schools/ Colleges when it passed the resolution levying the tax and approved the draft Bye-laws including the Self Assessment Scheme in its meeting on 29.1.2003. 56. It is true that in the notification dated 22.11.2004 and the notified Bye- Laws the term 'institutional land and buildings' have been used which was not there in the resolution and the draft Bye-laws and self Assessment Scheme. 57. The relevant extracts from the Self Assessment Scheme as notified on 3.6.2003 is as under: "HOW TO USE THIS SELF-ASSESSMENT BOOK? In order to be more transparent, less official discretions and citizen friendly, entire commercial property of all the Sectors has been divided into four zones namely 'A', 'B', 'C', 'D'. The citizen has to identify the category in which his property is located and then apply the specific rate applicable as indicated for that category in the table for average rate per Sq. feet/ per month of the property POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) expected to be let. The basis of classification of zoning is based on the expected rent, which a property can fetch solely on the basis of its location. In this type of Annual Rateable Value no significance has been given to the classification of construction or buildings, use of buildings etc. This book contains annexure, notes and a set of general conditions and a few examples: - Annexure - 1 This contains various concessionary rates per Sq. foot per month that the property owner has to adopt for arriving at the rateable value if he chooses to opt for Self Assessment Scheme and also if he does not opt for Self assessment. Annexure-2 It contains useful information, general conditions, definitions and methods of calculating the property tax. Annexure-3 This contains the sector-wise details of property falling under different Zones namely A, B, C and D depending on its expected let out value based on the locality in which the property is located. The properties that can expect highest rent in the sector have been classified under Zone A. The properties that can be expected to let at comparative less rent are classified under Zone B. The properties that have still lower rental value will be classified under zone C. The petty Shops, Rehries, Mini Booths, STD booths, Kiosk, Milk booths etc. have been classified into Zone D. Institutional Buildings: Commercial and Institutional buildings, which are other than SCOs, SCFs or Booths but have been constructed on the sites earmarked for a specific purpose e.g. Cinema Houses, Private Schools/Colleges, Theatres, Barat Ghars, Marriage palaces, Conventional Halls, Party/ Meeting Halls, Farm houses, Clinics, diagnostic Centers, Laboratories, Health Care Systems, Gyms, Hospitals, Nursing homes, Petrol pumps, Clubs, Godowns or any other type of building which is being used for any type of commercial/ institutional activity. The expected let out rate for this Category will be @ Rs.10/- per Sq. foot per month for calculating the rateable value. Note 1: If any portion of a residential building is used for a shop or any other commercial activity, the expected let out rate, for the portion so used , shall be charged at the rate fixed for the properties in Group V of Annexure I POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) Note 2: Religious Institutions are exempted but tax @ Rs 10 /- per Sq. foot per month for calculating the rateable value will be charged on the portion being used for running any commercial activities. Note 3: If for any reasons the tax calculated comes to less than Rs 50 per month, the minimum tax @ Rs 50 per month will be charged. Note 4: Commercial property pertaining to War widows, War heroes, freedom fighters or any other persons, who have sacrificed their lives for the nation shall be exempted from the payment of property tax. (Certificate from competent authority is required to be produced.) REBATE: If a person deposit the tax due for the full year on or before the due date a rebate of 10 per cent shall be allowed and if half yearly tax is deposited on or before the due date a rebate of 5 percent shall be allowed to him. Annexure 4: This contains few examples as how to arrive at rateable value of a property and computation of tax. ANNEXTURE -I RATES IF SELF-ASSESSMENT IS OPTED. Concessionary Rates for arriving at the Annual Rateable Values for self Assessment of Commercial Properties in Chandigarh City. The Table below gives various rates per sq. foot per month that the property owner has to adopt for arriving at Annual Rateable Value (ARV) of the Commercial Properties in Chandigarh. The table has four Zones: 'A', to 'D' according to concessionary rental values. The rates per sq.ft. per month prevalent in respective Zones have been inquired into and have been found to be quite high. But for the purpose of Self Assessment Scheme the Rates have been fixed much lower than the prevailing market rates. The Annual Rateable Value of a property is to be worked out by multiplying the Average Sq. ft. rate x Area of the floor of building x 12. After allowing a deduction of 10% on account of repair, the net taxable Annual Rateable Value will be ascertained. UNIT : RENT PER SQ.FOOT/PER MONTH POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) 1 2 3 4 5 6 Group Sector Zone A Zone B Zone C Zone D I 17 20 15 13 Min.Tax at Flat rate Rs.50/- p.m II 22, 34 & 35 16 13 12 Min.Tax at Flat rate Rs.50/- p.m III 7,8 9, 15, 19 & 26 14 12 9 Min.Tax at Flat rate Rs.50/- p.m IV Other-Sectors Industrial Area Ph-I & II 10 8 6 Min.Tax at Flat rate Rs.50/- p.m V Sites earmarked for specific purpose e.g., Clubs, Petrol Pumps etc. Rs.10 per sq. ft. xxx xxx xxx On vacant land forming part of a plot on which building has not yet been constructed, rate applicable per Sq. ft. per month will be Rupee 1/- per Sq. ft. irrespective of the zone. Service Charges. Government buildings are exempted from payment of property Tax on their land and buildings but the departments are liable to pay the service charges on account of services being provided to them. Service Charges payable are @ 75% of the tax calculated on the buildings as per the rate of Zone C of respective group in which the building is situated as per Annexure 1. There are five groups of sectors and each group has four Zone, namely A, B, C and D. The citizen is advised to identify the Zone in which his property is located and then apply the specific rate applicable according to the floor area. Please note that if the property has been left out in any of the Zones, rate of the adjoining property shall be taken for arriving at the Annual Rateable Value. xxx xxx xxx" 58. Comparing the Self Assessment Scheme which is a component of the Draft Bye-laws as approved by the General House of the Corporation on 29.1.2003 with the Scheme as notified on 3.6.2003, it is clear that the buildings which were listed in Annexure 4 in the draft Bye-laws and Self Assessment Scheme approved on 29.1.2003 have been termed/defined as 'institutional buildings' in the notified Bye-laws and Self Assessment Scheme. Thus it is the same set of POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) buildings and not any new class of property which was not taxed in the approved draft Bye-laws and Self Assessment Scheme which has been taxed by the impugned notification. 59. Ld. Counsel for the respondents have also not been able to point out any provision in the Act where under they are entitled to exemption from the said tax being an educational institution. 60. The first question is thus answered in favour of the appellants. It is held that the levy of tax on institutional land and buildings is duly authorised by the Corporation and is legal and valid. Question No.2 : 61. It is clear that in the meeting held on 29.01.2003 the General House of the Corporation had approved the draft bye-laws namely the Chandigarh Municipal Corporation (Tax on Commercial & Industrial Lands and Buildings) Byelaws and the Self Assessment Scheme-2002 with certain amendments/ additions The resolution was forwarded to the Secretary Local Government, Chandigarh with a request from the General House to de-notify the previous notification dated 24.2.1998 and to issue a fresh notification for levy of tax @ 2% along with amended draft bye-laws. 62. The issue was discussed by the Advisor to the Administrator with the Secretary Local Government and the Legal Remembrancer along with Commissioner, Municipal Corporation. It was decided that the draft Bye-Laws may be considered by a Committee consisting of Secretary Local Government, Commissioner Municipal Corporation, Chandigarh and the Legal Remembrancer. In the meeting of the aforesaid officers with the Advisor to the Administrator on 27.03.2003 it was decided to make certain changes including in the title of the Bye-laws. The Commissioner, Municipal Corporation was asked to rectify the Bye-Laws. The Commissioner, Municipal Corporation vide letter dated 01.05.2003 submitted the modified Bye-Laws and the scheme for consideration and approval of the sub- committee. Thereafter notification No.774-FII(8)- 2003/2774 dated 7.5.2003 was issued whereby the draft Bye-Laws called the Chandigarh Municipal Corporation (Tax on Commercial, Industrial and Institutional Lands and Buildings) Bye-Laws, 2003 alongwith Self POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) Assessment Scheme as approved by the Administrator were published. as required by sub section (1) of Section 401 of the Act. 63. The recital in the opening part of notification is as as under: "No.774-FII(8)-2003/274 The following draft of byelaws, which the Municipal Corporation, Chandigarh, proposed to make, in exercise of the powers conferred by sub- section (1) of Section 399 of the Punjab Municipal Corporation Act, 1976 as extended to Union Territory, Chandigarh by the Punjab Municipal Corporation Law (Extension to Chandigarh) Act, 1994 (Act No.45 of 1994) having been approved by the Administrator, Union Territory, Chandigarh as required by sub-section (1) of Section 401 of the Act ibid are hereby published for information of the persons likely to be effected thereby. Notice is hereby given that the draft of the Bye-laws will be taken into consideration by the Administrator, Union Territory, Chandigarh on after the expiry of period of 15 days from the date of publication of this notification in the Chandigarh Administration Gazette together with any objection or suggestion which may be received by the Secretary, Local Government, Chandigarh Administration, from any person before the expiry of the period so specified with respect to the draft, namely:- xxx xxx xxx" 64. From this recital (as also from the facts as discussed above) it is clear that draft byelaws had been made/proposed by Municipal Corporation, Chandigarh, in exercise of its powers under sub- section (1) of Section 399 of the Act. After their approval by the Administrator, Union Territory, Chandigarh as required by sub- section (1) of Section 401 of the Act they were being published for information of the persons likely to be effected thereby and inviting their objections or suggestions. 65. The Bye-Laws along with self assessment scheme were notified vide notification No.774-FII(8)-2003/3470 dated 3.6.2003. The recital in the opening part of this notification is as under: POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) "No.774-FII(8)-2003/3470 With reference to Chandigarh Administration, Local Government Department's notification bearing No.774-FII(8)-2003/2774, dated the 7th May, 2003 and in exercise of the powers conferred by sub- section(1) of Section 399 of the Punjab Municipal Corporation Act, 1976, as extended to the Union Territory, Chandigarh by the Punjab Municipal Corporation Law (Extension to Chandigarh) Act, 1994 (Act No.45 of 1994), the Administrator, Union Territory, Chandigarh, hereby makes the following Bye- laws, namely:- xxx xxx xxx" 66. As per this recital the bye-laws were made by the Administrator Union Territory, Chandigarh in exercise of the powers under Section 399(1) of the Act. 67. The Ld. Single Judge relied on this recital to hold that the byelaws had been made by the Administrator. The Ld. Single Judge acknowledged that a perusal of the record produced before the Court showed that in fact the bye-laws were framed by the Municipal Corporation and were approved and thereafter sent to the Administrator for publication and notification in the Official Gazette. But as in the notification dated 3.6.2003 these had been stated to be framed by the Administrator, U.T. Chandigarh they have to be taken to be so framed. It was held that in order to interpret a notification, the necessity to look into the proceedings etc. arises only to clarify the doubt. Otherwise simple interpretation is to be given to the notification. As in terms of the Act the Bye-laws could only be framed by the Corporation and not by the Administrator the same were declared to have been framed without jurisdiction and quashed. 68. With respect we are unable to agree with the Ld. Single Judge. 69. We find that there is no infirmity in the framing and notification of the Bye-laws. The draft bye-laws were framed by the House Tax Assessment Committee of the Corporation. In fact the process of framing had being under way since long. These were approved by the General House of the Corporation in the meeting held on 29.1.2003. Thereafter, they were sent to the Government for approval and notification. The Government/Administrator approved it with amendments. Before final notification the draft POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document CWP-10296-2008 (O&M) bye-laws as approved by the Administrator were published inviting objections. Later they were notified. 70. Section 401 of the Act contemplated making of the bye-laws subject to the condition of previous publication. The bye-laws made by the Corporation were also not to take effect until they had been approved by the Government and published in the Official Gazette. As per Section 401(2) the Government in approving a bye-law could make any change therein as appeared to it to be necessary. Clearly the procedure as contemplated under Section 399 and 401 was complied with. 71. A mere wrong recital in the notification dated 3.6.2003 that the bye-laws had been made by the Administrator would not invalidate the bye laws which as clear from the above narration had been framed by the Corporation, published for information of the public after being approved by the Administrator with changes, and thereafter notified. 72. It is held that the Chandigarh Municipal Corporation (Tax on Commercial, Industrial and Institutional Lands and Buildings) Bye-Laws, 2003 alongwith Self Assessment Scheme are legal and valid. The second question is answered accordingly.” In view whereof, this Court finds that the issue raised in the present writ petition being fully covered by the ratio of law laid down by Division Bench of this Court in Shri Guru Gobind Singh College of Pharmacy’s case (supra). Accordingly, the present writ petition deserves to be dismissed in the same terms. 7 Petition stands dismissed. 8 Pending miscellaneous application, if any, also stands disposed off. ( PANKAJ JAIN ) 16.07.2026 JUDGE Pooja Sharma-I Whether speaking/reasoned: Yes/No Whether reportable: Yes/No POOJA SHARMA 2026.07.21 17:46 I attest to the accuracy and integrity of this document