Important judgements passed
by the Consumer Courts
Payment
of tax to government cannot constitute a payment of 'consideration'
National Consumer Disputes
Redressal Commission,
New Delhi
Revision Petition No.
136 of 1993
The Mayor, Calcutta
Municipal Corporation ... Appellant
Vs.
Tarapada Chatterjee
& Others
... Respondents
Before : Hon'ble
Justice V. Balakrishna Eradi
ORDER
In this Revision Petitionn the Mayor, Calcutta Municipal Corporation has
challenged the order dated February 11, 1993 passed by the State Commission,
Calcutta confirming an order passed by the District Forum, Calcutta issuing
a direction to the Municipal Corporation to take immediate steps for increasing
pressure at which the water supply is being made to the premises of teh
complainant and awarding to the complainant a compensation of Rs.5,000/-.
After hearing the Cousel for the parties and going through records of teh
case it has become clear that the complainant is paying only "property
tax" to the Corporation, the levy of which is based on the annual value
determined as per the provisions of Section 174 of the Calcutta Municipal
Corporation Act, 1980. The construction and maintenance of the water works
and providing means for supply of water for public and private purposes
is specified in Section 29 of the said Act as one of the obligatory statutory
functions of the Corporation and it is only in the discharge of the said
statutory duty that the Corporation is maintaining the system of water
supply to the respondents within the Municipal limits. The complainant
is getting the water supply to his premises only by virtue of the performance
of this statutory duty by the Corporation.
In the order dated December 15, 1989 passed by this Commission in CONSUMER
UNITY AND TRUST SOCIETY vs THE STATE OF RAJASTHAN & ORS. (F.A. No.2
of 1982) - (1991)- I.C.P.R.241, the question whether the payment of a tax
can constitute payment of "consideration" for the 'hiring' or 'availing
of' service 'for consideration' has been discussed in detail and after
referring to the ruling given on the point by the Supreme Court of India
it was held that payment of tax to Government which goes into the
consolidated fund of the Union of India or State cannot constitute a payment
of "consideration" for the 'hiring' or 'availing of' a service. In the
light of the principles laid down in the said decision, it is manifest
that the contrary conclusion recorded by the State Commission and the District
Forum is incorrect and they have acted illegally and without jurisdiction
in holding that the dispute raised by the complainant about the inadequacy
of pressure in the water supply system is a 'consumer disputes' that can
be adjudicated upon under the Act.
The impugned orders of the State Commission and the District Forum are
hereby set aside and the complaint petition filed by the respondents before
the District Forum is dismissed. Tha parties will bear their respective
costs.
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