Once Tax Is Assessed Entire Amount Has To Be Paid Unless There Is Amnesty Scheme: Kerala High Court

The Kerala High Court has held that once tax has been assessed, the entire amount has to be paid, unless there are amnesty schemes.

The Court was considering a Writ Petition seeking direction to reconsider and assess building tax on Petitioner's building as per the plinth area in the plan approved by the local authority.

The Bench of Justice Bechu Kurian Thomas observed, "In the instant case, as mentioned earlier, petitioner had even acquiesced into the order by paying the first instalment and thereafter he has turned around and now requests for acceptance of a portion of the amount in satisfaction of the entire tax assessed. Such a procedure is unheard in law. Once tax has been assessed, the entire amount has to be paid, unless there are amnesty schemes."

The Petitioner was represented by Advocate Nirmal V Nair while the Respondent was represented by Government Pleader Jasmin M.M.

Facts of the Case

The Petitioner constructed the building pursuant to the permit and thereafter, the owners were assessed to building tax to the tune of Rs.12,42,800/-. The first instalment of the said order of assessment was paid by the Petitioner. In the meantime, Petitioner filed a request letter before the assessing authority to cancel the proceedings initiated against him by accepting a portion of the amount assessed and avoid further proceedings. The Authorities responded stating that since there was failure to pay the amount due, revenue recovery proceedings have already been recommended.

Reasoning By Court

The Court held that once an order of assessment is passed, the assessing authority becomes practically functus officio for the purpose of building tax.

"The remedy of a person aggrieved by an order of assessment is to prefer statutory appeal and revision as provided under the Act. In the absence of any statutory remedy invoked by the petitioner, the assessment order became final. Therefore recourse to Article 226 of the Constitution of India is not proper," the Court observed.

The Petition was accordingly dismissed.

Cause Title: C Y Cherian vs. State of Kerala (2025:KER:29523)

Appearances

Petitioner- Advocate Nirmal V Nair

Respondent- Government Pleader Jasmin M.M., Standing Counsel Jayakumar Namboodiri

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