'BMC Can Levy Water Tax Irrespective Of Whether Property Owner Or Occupier Actually Uses Any': Bombay HC

Mumbai: The Bombay High Court has held that the BMC can levy water tax and water benefit tax irrespective of whether the owner or occupier of a property actually uses any. An HC bench was hearing a reference arising from conflicting views taken by a division bench of the court on the issue of the liability of the owner or occupier not consuming water supplied by the corporation to pay water tax and water benefit tax.

Details On ONGC Plea Challenging Tax

One of the petitions before the court was of ONGC, which challenged a notice of demand in 2000 seeking tax. ONGC possessed a plot at H Block, BKC, and was paying property tax, which did not include water taxes. In 1998, ONGC submitted its plan to construct a building on the plot.

In 2000, the BMC raised the demand to levy water tax at 130% of the plot’s rateable value. ONGC questioned the levy, arguing that it had not procured a water connection for the plot. However, the HC took note of an order passed by the Supreme Court in 2020, which held that water tax and water benefit tax form part of property tax under the Act.