Local Body Tax – Appeal – Pre-deposit of “disputed tax” – Scope of – Section 406(8) of MMC Act

Sub-section (8) of Section 406 of the Maharashtra Municipal Corporations Act, 1949, provides that no appeal shall be entertained unless the amount of “disputed tax” claimed has been deposited.

The Respondents have passed assessment order for Local Body Tax of Rs.28,861,674, interest of Rs.28,861,674 for June 2015 to June 2017 and penalty of Rs.15,000/-  The petitioner deposited the tax while filing appeal. The contention of the Respondents that the interest and penalty are also to be deposited while filing appeal.

HELD that the Maharashtra Municipal Corporation (Local Body Tax) Rules make a distinction between levy of tax, interest and penalty.  The impugned order dated 22.2.2024 of Municipal Corporation that no appeal shall be entertained unless the amount of deposited tax with interest and penalty has been deposited is quashed.

Judgment dated 20  / 22 August, 2024 of the Division Bench of the Bombay High Court in Writ Petition No.3821 of 2024