66. General power of taxation.—(1) The Board shall, with the previous sanction of the Central
Government, impose the following taxes for the purposes of this Act:—
(a) property tax; and
(b) tax on trades, professions callings and employments.
(2) In addition to the taxes specified in sub-section (1) the Board may, for the purposes of this Act,
impose any tax which under any enactment for the time being in force may be imposed in any
municipality in the State in which the cantonment is situated:
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Provided that the Board shall revise every five years, the rates of taxes imposed under
sub-sections (1) and (2):
Provided further that the Board shall not abolish any tax imposed under this section or vary it to the
Board's financial disadvantage without the prior sanction of the Central Government and the tax
mentioned in sub-section (2) shall not exceed the ceiling prescribed in this behalf by clause (2) of
article 276 of the Constitution.
(3) The taxes specified in sub-sections (1) and (2) shall be imposed, assessed and collected in
accordance with the provisions of this Act, rules and the bye-laws made thereunder.
(4) Any tax imposed under this section shall take effect from the date of its notification in the Official
Gazette or where any later date is specified in this behalf in the notification, from such later date.
67. Charging of fees.—The Board shall, for the purposes of this Act, charge the following fees,
namely:—
(a) licence fee on vehicles and animals;
(b) licence fee on advertisements other than advertisements in newspapers;
(c) fee relating to maintenance of property records;
(d) processing fee on buildings payable along with application for sanction of the building plan;
(e) licence fee on entry of vehicles;
(f) betterment fee on the increase in land value caused by the execution of any development work;
and
(g) such other fee which the Board may by regulation specify:
Provided that the fee charged under clause (g) of this section shall not be less than the cost incurred
by the Board for or in connection with the specific service to which the fee relates.
68. Norms of property tax.—Save as otherwise provided in this Act, the property tax shall be levied
on lands and buildings in the cantonment and shall consist of not less than ten and not more than thirty
per cent. of the annual rateable value of lands and buildings:
Provided that the Board may, when fixing the rate at which the property tax shall be levied during any
year, determine that the rate leviable in respect of lands and buildings or portions of lands and buildings
in which any particular class of trade or business is carried on shall be higher than the rate determined in
respect of other lands and buildings or portions of other lands and buildings by an amount not exceeding
one half of the rate so fixed:
Provided further that the tax may be levied on graduated scale, if the Board so determines.
Explanation.—Where any portion of a land or building is liable to a higher rate of the tax such
portion shall be deemed to be a separate property for the purpose of municipal taxation alone.
69. Framing of preliminary proposals.—When a resolution has been passed by the Board
proposing to impose a tax under section 66, the Board shall in the manner prescribed in section 319
publish a notice specifying—
(a) the tax which it is proposed to impose;
(b) the persons or classes of persons to be made liable and the description of the property or other
taxable thing or circumstance in respect of which they are to be made liable; and
(c) the rate at which the tax is to be levied.
70. Objections and disposal thereof.—(1) Any inhabitant of the cantonment may, within thirty days
from the publication of the notice under section 69, submit to the Board an objection in writing to all or
any of the proposals contained therein and the Board shall take such objection into consideration and pass
orders there on by special resolution.
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(2) Unless the Board decides to abandon its proposals contained in the notice published under
section 69, it shall submit to the Central Government through the General Officer Commanding-in-Chief,
the Command, all such proposals along with the objections, if any, received in connection there with
together with its opinion thereon and any modifications proposed in accordance with such opinion and the
notice published under the said section.
71. Imposition of tax.—The Central Government may authorise the Board to impose the tax either in
the original form or, if any objection has been submitted, in that form or any such modified form as it
thinks fit.
72. Power of Central Government to issue directions to the Board.—(1) Where the Central
Government is of opinion that for securing adequate financial provision for the efficient discharge of the
duties and functions of a Board it is necessary so to do, it may issue directions to the Board requiring it to
impose within the cantonment area any tax which it is empowered under this Act to impose and which is
not already imposed within the said area or to enhance any existing tax in such a manner or to such an
extent as the Central Government considers fit and the Board shall, in accordance with the direction,
forthwith impose or enhance such tax in accordance with the provisions of this Chapter:
Provided that—
(a) no such directions shall be issued without giving the Board and the inhabitants of the
cantonment area, an opportunity of showing cause why such directions should not be issued;
(b) the Central Government shall take into consideration any objection which the Board or any
inhabitant of the cantonment area may make against the imposition or enhancement of such tax;
(c) it shall not be lawful for the Board to modify or abolish such tax when imposed or enhanced
without the sanction of the Central Government.
(2) The Central Government may, at any time, cancel or modify any direction issued by it under
sub-section (1) with effect from such date as may be specified in the direction and on and from the date so
specified the imposition or enhancement of such tax, shall cease or be modified accordingly.
73. Definition of “annual rateable value”.—For the purposes of this Chapter, “annual rateable
value” means—
(a) in the case of hotels, colleges, schools, hospitals, factories and any other buildings which the
Chief Executive Officer decides to assess under this clause, one-twentieth of the sum obtained by
adding the estimated present cost of erecting the building to the estimated value of the land
appertaining thereto; and
(b) in the case of building or land not assessed under clause (a), the gross annual rent for which
such building exclusive of furniture or machinery therein or such land is actually let or, where the
building or land is not let or in the opinion of the Chief Executive Officer is let for a sum less than its
fair letting value, might reasonably be expected to let from year to year:
Provided that, where the annual rateable value of any building is, by reason of exceptional
circumstances, in the opinion of the President Cantonment Board, excessive if calculated in the aforesaid
manner, the President Cantonment Board may fix the annual rateable value at any less amount which
appears to him to be just.
74. Incidence of taxation.—(1) Save as otherwise expressly provided in the notification imposing
the tax, every tax assessed on the annual rateable value of buildings or lands or of both shall be leviable
primarily upon the actual occupier of the property upon which the said tax is assessed, if he is the owner
of the buildings or land or holds them on a building or other lease granted by or on behalf of the
Government or the Board or on a building lease from any person.
(2) In any other case, the tax shall be primarily leviable as follows, namely :—
(a) if the property is let, upon the lessor;
(b) if the property is sub-let, upon the superior lessor;
(c) if the property is unlet, upon the person in whom the right to let the same vests.
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(3) The liability of the several owners of any building which is, or purports to be, severally owned in
parts or flats or rooms or separate tenements for the payment of such tax or any installment thereof
payable during the period of such ownership shall be joint and several.
(4) On failure to recover any sum due on account of such tax from the person primarily liable, these
may be recovered from the occupier of any part of the buildings or lands in respect of which the tax is due
such portion of the sum due as bears to the whole amount due the same ratio which the rent annually
payable by such occupier bears to the aggregate amount of rent so payable in respect of the whole of the
said buildings or lands, or to the aggregate amount of the letting value thereof, if any, stated in the
authenticated assessment list.
(5) An occupier who makes any payment for which he is not primarily liable under this section shall,
in the absence of any contract to the contrary, be entitled to be reimbursed by the person primarily liable
for the payment, and, if so entitled, may deduct the amount so paid from the amount of any rent from time
to time becoming due from him to such person.
Assessment list
75. Assessment list.—When a tax assessed on the annual rateable value of buildings or lands or both
is imposed, the Chief Executive Officer shall cause an assessment list of all buildings or lands in the
cantonment, or of both, as the case may be, to be prepared in such form and in such manner as the Central
Government may by rule prescribe.
76. Revision of assessment list.—(1) The Chief Executive Officer shall, at the same time, give public
notice of a date, not less than one month thereafter, when he shall proceed to consider the valuation and
assessments entered in the assessment list, and, in all cases in which any property is for the first time
assessed or the assessment is increased shall also give written notice thereof to the owner and to any
lessee or occupier of the property.
(2) Any objection to a valuation or assessment shall be made in writing to the Chief Executive Officer
before the date fixed in the notice, and shall state in what respect the valuation or assessment is disputed,
and all objections so made shall be recorded in a register to be kept for the purpose by the Chief
Executive Officer.
(3) The objections shall be inquired into and investigated, and the persons making them shall be
allowed an opportunity of being heard either in person or by authorised agent by the Chief Executive
Officer.
77. Authentication of assessment list.—(1) When all objections made under section 76 have been
disposed of, and the revision of the valuation and assessment has been completed, the assessment list
shall be authenticated by the signatures of the Chief Executive Officer and the President Cantonment
Board, who shall, certify that except in the cases if any, in which amendments have been made as shown
therein no valid objection has been made to the annual rateable value or any other matters entered in the
said list:
Provided that whenever the General Officer Commanding-in-Chief, the Command or the Principal
Director comes to the conclusion that the assessment lists or any entries therein have not been correctly
prepared and are prejudicial to the interests of the Board or of the Central Government, they may
suo moto re-open the said assessment and issue such directions as deemed fit.
(2) The assessment list so authenticated shall be deposited in the office of the Board, and shall there
be open, free of charge, during office hours to all owners lessees and occupiers of property comprised
therein or the authorised agents of such persons, and a public notice that it is so open shall forthwith be
published.
78. Evidential value of assessment list.—Subject to such alterations as may thereafter be made in
the assessment list under the provisions of this Chapter and to the result of any appeal made thereunder,
the entries in the assessment list authenticated and deposited as provided in section 77 shall be accepted
as conclusive evidence—
(a) for the purposes of assessing any tax imposed under this Act, of the annual rateable value or
other valuation of all buildings and lands to which such entries respectively refer; and
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(b) for the purposes of any tax imposed on buildings or lands, of the amount of each such tax
leviable thereon during the year to which such list relates.
79. Amendment of assessment list.—(1) The Chief Executive Officer may after obtaining the
approval of President Cantonment Board amend the assessment list at any time—
(a) by inserting or omitting the name of any person whose name ought to have been or ought to
be inserted or omitted; or
(b) by inserting or omitting any property which ought to have been or ought to be inserted or
omitted; or
(c) by altering the assessment on any property which has been erroneously valued or assessed
through fraud, accident or mistake whether on the part of administration or assessees; or
(d) by revaluing or re-assessing any property the value of which has been increased; or
(e) in the case of a tax payable by an occupier, by changing the name of the occupier:
Provided that no person shall by reason of any such amendment become liable to pay any tax or
increase of tax in respect of any period prior to the commencement of the year in which the assessment is
made.
(2) Before making any amendment under sub-section (1) the Chief Executive Officer shall give to any
person affected by the amendment, notice of not less than one month that he proposes to make the
amendment.
(3) Any person interested in any such amendment may tender an objection to the Chief Executive
Officer in writing before the time fixed in the notice, and shall be allowed an opportunity of being heard
in support of the same in person or by authorised agent.
80. Preparation of new assessment list.—The Chief Executive Officer shall prepare a new
assessment list at least once in every three years, and for this purpose the provisions of sections 75 to 79
shall apply in like manner as they apply for the purpose of the preparation of an assessment list for the
first time.
81. Notice of transfers.—(1) Whenever the title of any person primarily liable for the payment of a
tax on the annual rateable value of any building or land to or over such building or land is transferred, the
person whose title is transferred and the person to whom the same is transferred shall, within three months
after the execution of the instrument of transfer or after its registration, if it is registered, or after the
transfer is effected, if no instrument is executed, give notice of such transfer to the Chief Executive
Officer.
(2) In the event of the death of any person primarily liable as aforesaid, the person on whom the title
of the deceased devolves shall give notice of such devolution to the Chief Executive Officer within
six months from the death of the deceased.
(3) The notice to be given under this section shall be in such form as may be determined by rules
made under section 346, and the transferee or other person on whom the title devolves shall, if so
required, be bound to produce before the Chief Executive Officer any documents evidencing the transfer
or devolution.
(4) Every person who makes a transfer as aforesaid without giving such notice to the Chief Executive
Officer shall continue liable for the payment of all taxes assessed on the property transferred until he
gives notice or until the transfer has been recorded in the registers of the Board, but nothing in this section
shall be held to affect the liability of the transferee for the payment of the said tax.
(5) The Chief Executive Officer shall record every transfer or devolution of title notified to him
under sub-section (1) or sub-section (2) in the assessment list and other tax registers of the Board.
(6) Any failure to comply with the provisions contained in sub-sections (1) to (3) shall be punishable
with fine which may extend to ten thousand rupees.
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82. Notice of erection of buildings.—(1) If any building is erected or re-erected within the meaning
of section 235, the owner shall give notice thereof to the Chief Executive Officer within thirty days from
the date of its completion or occupation, whichever is earlier.
(2) Any person failing to give the notice required by sub-section (1) shall be punishable with fine
which may extend to five thousand or ten times the amount of the tax payable on the said building, as
erected or re-erected, as the case may be, in respect of a period of three months, whichever is greater.
Remission and refund
83. Demolition, etc., of buildings.—If any building is wholly or partly demolished or destroyed or
otherwise deprived of value, the Board may, on the application in writing of the owner or occupier, remit
or refund such portion of any tax assessed on the annual rateable value thereof as it thinks fit but no
remission or refund shall take effect in respect of any period commencing more than two months before
the delivery of such application.
84. Remission of tax.—In a cantonment when any building or land has remained vacant and
unproductive of rent for sixty or more consecutive days the Chief Executive Officer shall remit or refund,
as the case may be, one-half of such portion of any tax assessed on the annual rateable value thereof as
may be proportionate to the number of days during which the said building or land has remained vacant
and unproductive of rent:
Provided that in any cantonment which the Central Government, by notification in the Official
Gazette, has declared to be a hill cantonment and in respect of which the Central Government by the same
or a like notification has declared a portion of the year to be the season for the cantonment—
(a) when any building or land is leased for occupation through the season only, but the rent
charged is the full annual rent, no remission or refund shall be admissible under this section in respect
of anytime outside the season during which the building or land remains vacant;
(b) when such building or land has remained vacant and unproductive of rent, in respect of any
time, not being less than sixty consecutive days during which within the season, the Chief Executive
Officer shall remit or refund one-half of such portion of any tax assessed on the annual rateable value
thereof as bears to the whole of the tax so assessed the same proportion as the number of days during
which the building or land has remained vacant and unproductive of rent bears to the total length of
the season.
85. Power to require entry in assessment list of details of buildings.—(1) For the purpose of
obtaining a partial remission or refund of tax, the owner of a building composed of separate tenements
may request the Chief Executive Officer at the time of the assessment of the building, to enter in the
assessment list, in addition to the annual rateable value of the whole building, a note recording in detail
the annual rateable value of each separate tenement.
(2) When any tenement, the annual value of which has been thus separately recorded, has remained
vacant and unproductive of rent for sixty or more consecutive days one-half of such portion of any tax
assessed on the annual rateable value of the whole building shall be remitted or refunded as would have
been remitted or refunded if the tenement had been separately assessed.
86. Notice to be given of the circumstances in which remission or refund is claimed.—No
remission or refund under section 84 or section 85 shall be made unless notice in writing of the fact that
the building, land or tenement has become vacant and unproductive of rent, has been given to the Chief
Executive Officer and no remission or refund shall take effect in respect of any period commencing more
than fifteen days before the delivery of such notice.
87. What buildings, etc., are to be deemed vacant.—(1) For the purposes of sections 84 and 85 no
building, tenement or land shall be deemed vacant if maintained as a resort or town or country house or be
deemed unproductive of rent if let to a tenant who has a continuing right of occupation thereof, whether
he is in actual occupation or not.
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(2) The burden of proving all facts entitling any person to claim relief under section 83 or section 84
or section 85 shall be upon him.
88. Notice to be given of every occupation of vacant building or house.—(1) The owner of any
building, tenement or land in respect of which a remission or refund of tax has been given under
section 84 or section 85 shall give notice of the re-occupation of such building, tenement or land within
fifteen days of such re-occupation.
(2) Any owner failing to give the notice required by sub-section (1) shall be punishable with fine
which shall not be less than twice the amount of the tax payable on such building, tenement or land in
respect of the period during which it has been re-occupied and which may extend to two thousand five
hundred rupees, or to ten times the amount of the said tax, whichever sum is greater.
Charge on immovable property
89. Tax on buildings and land to be a charge thereon.—A tax assessed on the annual rateable
value of any building or land shall, subject to the prior payment of the land-revenue, if any, due to the
Government thereon, be a first charge upon the building or land.
Octroi, terminal tax and toll
90. Inspection of imported goods, octroi, terminal tax and toll, etc.—Every person bringing or
receiving any goods, vehicles or animals within the limits of any cantonment in which octroi or terminal
tax or toll is leviable shall, when so required by an officer duly authorised by the Chief Executive Officer
in this behalf, so far as may be necessary for ascertaining the amount of tax chargeable—
(a) permit that officer to inspect, examine or weigh such goods, vehicles or animals; and
(b) communicate to that officer any information, and exhibit to him any bill, in voice or
document of a like nature, which such person may possess relating to such goods, vehicles or animals.
91. Power to seize, etc.—(1) Any person who takes or attempts to take past any octroi station or any
other place appointed within a cantonment for the collection of octroi, terminal tax or toll any goods,
vehicles or animals, on account of which octroi, terminal tax or toll is leviable and thereby evades, or
attempts to evade, the payment of such octroi, terminal tax or toll and any person who abets any such
evasion or attempt at evasion, shall be punishable with fine which may extend either to ten times the
value of such octroi, terminal tax or toll, or to two thousand five hundred rupees, whichever is greater,
and which shall not be less than twice the value of such octroi, terminal tax or toll, as the case may be.
(2) In case of non-payment of any octroi or terminal tax or toll on demand, the officer empowered to
collect the same may seize any goods, vehicles or animals on which the octroi, terminal tax or toll is
chargeable or any part or number thereof which is of sufficient value to satisfy the demand and shall give
a receipt specifying the items seized.
(3) The Chief Executive Officer, or an officer of the Board authorised by him, after the lapse of
five days from the seizure, and after the issue of a notice in writing to the person in whose possession the
goods, vehicles or animals were at the time of seizure, fixing the time and place of sale, may cause the
property so seized, or so much thereof as may be necessary, to be sold by auction to satisfy the demand
and meet expenses occasioned by the seizure, custody and safe thereof, unless the demand and expenses
are in the meantime paid:
Provided that the Chief Executive Officer may, in any case, order that any article of a perishable
nature which cannot be kept for five days without serious risk of damage, or which cannot be kept safe at
a cost which, together with the amount of octroi, terminal tax or toll, is likely to exceed its value, shall be
sold after the lapse of such shorter times as he may, having regard to the nature of the article, think
proper.
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(4) If, at any time before the sale has begun, the person whose property has been seized tenders to the
Chief Executive Officer the amount of all expenses incurred and of the octroi, terminal tax or toll, the
Chief Executive Officer shall release the property seized.
(5) The surplus, if any, of the sale proceeds shall be credited to the cantonment fund, and shall, on
application made to the Chief Executive Officer within six months after the sale, be paid to the person in
whose possession the property was at the time of seizure, and, if no such application is made, shall
become the property of the Board.
92. Lease of octroi, terminal tax or toll.—It shall be lawful for the Chief Executive Officer, with the
previous sanction of the Board to lease the collection of any octroi, terminal tax or toll for any period not
exceeding one year; and the lessee and all persons employed by him in the management and collection of
the octroi, terminal tax or toll shall, in respect thereof,—
(a) be bound by any orders made by the Chief Executive Officer for their guidance;
(b) have such powers exercisable by officers or employees of the Board under this Act as the
Board may confer upon them; and
(c) be entitled to the same remedies and be subject to the same responsibilities as if they were
employed by the Board for the management and collection of the octroi, terminal tax or toll, as the
case may be:
Provided that no article distrained may be sold except under the orders of the Chief Executive
Officer.
Appeals
93. Appeals against assessment.—(1) An appeal against the assessment or levy of, or against the
refusal to refund, any tax under this Act shall lie to the District Court.
(2) If the District Court, on the hearing of an appeal under this section, entertains reasonable doubt on
any question as to the liability to, or the principle of assessment of, a tax, the Court may, either on its own
motion or on the application of the appellant, draw up statement of the facts of the case and the point on
which doubt is entertained, and refer the statement with its opinion on the point for the decision of the
High Court.
(3) On a reference being made under sub-section (2), the subsequent proceedings in the case shall be,
as nearly as may be, in conformity with the rules relating to references to the High Court contained in
order XLVI of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908).
Explanation.—For the purposes of this section and sections 94, 95, 96, 97 and 102, “District Court”,
in relation to a cantonment, means the Principal Civil Court of original jurisdiction having jurisdiction
over the area in which that cantonment is situated, and includes such other Civil Court having jurisdiction
over that area as the Central Government may, by notification in the Official Gazette, specify in this
behalf, in consultation with the High Court having jurisdiction over that area.
94. Costs of appeal.—In every appeal the costs shall be in the discretion of the District Court hearing
the appeal.
95. Recovery of costs from Board.—(1) If the Board fails to pay any cost awarded to an appellant
within ten days after the date of the order for payment thereof, the District Court awarding the costs may
order the person having the custody of the balance of the cantonment fund to pay the amount.
(2) Where the appellant fails to pay any costs awarded to the Board within ten days after the date of
the order for payment thereof, the same shall be recoverable by the Board in the same manner as moneys
recoverable by the Board under section 324.
96. Conditions of right to appeal.—No appeal shall be heard or determined under this Chapter
unless—
(a) the appeal is, in the case of a tax assessed on the annual rateable value of buildings or lands or
both, brought within thirty days next after the date of the authentication of the assessment list under
section 77 (exclusive of the time required for obtaining a copy of the relevant entries therein), or, as
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the case may be, within thirty days of the date on which an amendment is finally made under
section 79 and in the case of any other tax, within thirty days next after the date of the receipt of the
notice of assessment or of alteration of assessment or, if no notice has been given, within thirty days
next after the date of the presentation of the first bill in respect thereof:
Provided that an appeal may be admitted after the expiration of the period prescribed there for by
this section if the appellant satisfies the District Court before whom the appeal is preferred that he had
sufficient cause for not preferring it within that period;
(b) the amount including the assessed tax or duty, if any, in dispute in the appeal shall be
deposited by the appellant every year on or before the due date in the office of the Board till the
appeal is decided by the District Court.
97. Finality of appellate orders.—The order of a District Court confirming, setting aside or
modifying an order in respect of any valuation or assessment or liability to assessment or taxation shall be
final:
Provided that it shall be lawful for the District Court, upon application or on its own motion, to
review any order passed by it in appeal if application in this behalf is made within three months from the
date of the original order.
Payment and recovery of taxes
98. Time and manner of payment of taxes.—Save as otherwise expressly provided under this Act,
any tax imposed under the provisions of this Act shall be payable on such dates and in such manner, as
the Chief Executive Officer may, by public notice, direct.
99. Public notice for taxes due.—(1) When any tax has become due the Chief Executive Officer
shall cause a separate bill and public notice to be issued as well as published in a local newspaper
specifying the tax and the period for which it is due for payment.
(2) The tax shall become due for payment from the date of issue of public notice under
sub-section (1) above.
(3) Any non-receipt of a Bill by a person shall not be a cause for non-payment of the tax notified
under sub-section (1).
100. Notice of demand.—(1) If the amount of tax for which public notice has been issued or a bill
has been presented is not paid within thirty days from the issue of public notice or presentation of the bill,
as the case may be, the Chief Executive Officer may cause to be served upon the person liable for the
payment of the same a notice of demand in the form set forth in Schedule I.
(2) For every notice of demand which the Chief Executive Officer causes to be served on any person
under this section, a fee of such amount, not exceeding two hundred rupees as shall in each case be fixed
by the Chief Executive Officer, shall be payable by the said person and shall be included in the costs of
recovery.
101. Recovery of tax.—(1) If the person liable for the payment of any tax does not, within thirty
days from the service of the notice of demand, pay the amount due, or show sufficient cause for
non-payment of the same to the satisfaction of the Chief Executive Officer, such sum, with all costs of
recovery, may be recovered under a warrant, issued in the form set forth in Schedule II, by distress and
sale of the movable property or attachment and sale of the immovable property of the defaulter:
Provided that the Chief Executive Officer shall not recover any sum the liability for which has been
remitted on appeal under this Chapter:
Provided further that the sale of any immovable property attached under this sub-section shall not be
made save under the orders of the Board.
(2) Every warrant issued under this section shall be signed by the Chief Executive Officer.
102. Interest payable on taxes due.—(1) If a person on whom a notice of demand has been served
under section 100, does not, within thirty days from the service of such notice, pay the sum demanded in
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the notice, he shall be liable to pay by way of interest, in addition to the sum and other charges due one
per cent., of the sum due for each complete month from the date of expiry of the period of thirty days as
aforesaid.
(2) The amount of interest shall be recoverable in the same manner as moneys recoverable by the
Board under section 324.
Provided that—
(a) where no appeal has been preferred, the Chief Executive officer with the previous sanction of
the Board; and
(b) in any other case, the District Court hearing the appeal under section 93,
may remit the whole or any part of the interest payable in respect of any period.
103. Distress.—(1) It shall be lawful for any official of the Board to whom a warrant issued under
section 101 is addressed to distrain, wherever it may be found in the cantonment, any movable property of
or standing timber, growing crops or grass belonging to the person therein named as defaulter, subject to
the following conditions, exceptions and exemption, namely:—
(a) the following property shall not be distrained—
(i) the necessary wearing apparel and bedding of the defaulter or of his wife or of his
children;
(ii) tools of artisans;
(iii) books of account; or
(iv) when the defaulter is an agriculturist, his implements of husbandry, seed-grain, and such
cattle as may be necessary to enable the defaulter to earn his livelihood;
(b) the distress shall not be excessive, that is to say, the property distrained shall be as nearly as
possible equal in value to the amount recoverable under the warrant, and if any property has been
distrained which, in the opinion of the Chief Executive Officer, should not have been distrained, it
shall forthwith be returned.
(2) The person charged with the execution of a warrant of distress shall forthwith make an inventory
of the property which he seizes under such warrant, and shall, at the same time, give a written notice in
the form in Schedule III to the person in possession thereof at the time of seizure that the said property
will be sold as therein mentioned.
104. Disposal of distrained property.—(1) When the property seized is subject to speedy and
natural decay, or when the expense of keeping it in custody is, when added to the amount to be recovered,
likely to exceed its value, the Chief Executive Officer shall give notice to the person in whose possession
the property was at the time of seizure that it will be sold at once, and shall sell it accordingly by public
auction unless the amount mentioned in the warrant is forthwith paid.
(2) If the warrant is not in the meantime suspended by the Chief Executive Officer, or discharged, the
property seized shall, after the expiry of the period named in the notice served under sub-section (2) of
section 103, be sold by public auction by order of the Chief Executive Officer.
(3) For every distraint made under this Chapter a fee of such amount, not exceeding two hundred
rupees, as shall in each case be fixed by the Chief Executive Officer shall be charged, and the said fee
shall be included in the costs of recovery.
105. Attachment and sale of immovable property.—(1) When a warrant is issued for the
attachment and sale of immovable property, the attachment shall be made by an order prohibiting the
defaulter from transferring or charging the property in any way, and all persons from taking any benefit
from such transfer or charge, and declaring that such property would be sold unless the amount of tax due
with all costs of recovery is paid in the office of the Board within fifteen days from the date of
attachment.
(2) An order under sub-section (1) shall be displayed at some place on or adjacent to such property by
pasting the same conspicuously and by publishing the same in a newspaper having circulation in the area
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in which the property is situated or by any other means or mode as may be considered appropriate by the
Chief Executive Officer.
(3) Any transfer of or charge on the property attached or any interest thereon made without the
written permission of the Chief Executive Officer shall be void as against all claims of the Board
enforceable under the attachment.
(4) Where the sum due to the Board with the cost incurred by the Board in the sale of the property,
including publication of notice in newspaper and a sum equal to five per cent. of the purchase money for
payment to the purchaser is paid by the defaulter, before the confirmation of the sale under
sub-section (5), the attachment, if any, of the immovable property shall be deemed to have been removed.
(5) After the sale of the property by auction as aforesaid, it shall be confirmed in writing by the Chief
Executive Officer who shall put the person declared to be the purchaser in possession of the same and
shall grant him a certificate to the effect that he has purchased the property to which the certificate refers.
(6) The Central Government may make rules for—
(a) regulating the manner of execution of warrants for the attachment and sale of immovable
property;
(b) charging of fees for the attachment and sale of immovable property, to be included in the cost
of recovery of the tax due;
(c) summary determination of any claim made by any person other than the person liable for the
payment of any tax, in respect of any property attached in execution of warrant under this section.
106. Recovery from a person about to leave cantonment and refund of surplus sale proceeds, if
any.—(1) If the Chief Executive Officer has reason to believe that any person from whom any sum is due
or is about to become due on account of any tax is about to move from the cantonment, he may direct the
immediate payment by such person of the sum so due or about to become due, and cause a notice of
demand for the same to be served on such person.
(2) If, on the service of such notice, such person does not forthwith pay the sum so due or about to
become due, the amount shall be leviable by distress and sale of movable property or attachment and sale
of immovable property in the manner hereinbefore provided in this Chapter, and the warrant of such
distress and sale or attachment and sale may be issued and executed without any delay.
(3) The surplus of the sale proceeds arising out of section 104, section 105 and this section, if any,
shall immediately after the sale of the property, be credited to the cantonment fund, and the notice of such
credit shall immediately be given to the person whose property has been sold, or to his legal
representative and, if such money is claimed, within a period of one year from the date of notice, a refund
thereof shall be made to the said person or his representative.
(4) Any surplus of the sale proceeds not claimed within one year as aforesaid shall be the property of
the Board.
107. Power to institute suit for recovery.—Instead of proceeding against a defaulter by distress and
sale of movable property or attachment and sale of immovable property as hereinbefore provided in this
Chapter, or after a defaulter has been so proceeded against unsuccessfully or with only partial success,
any sum due or the balance of any sum due, as the case may be, from such defaulter on account of a tax
may be recovered from him by a suit in any court of competent jurisdiction.
Special provisions relating to taxation, etc
108. Board to be a Municipality for taxation purposes.—A Board shall be deemed to be a
municipal committee for the purposes of taxation as per the Municipal Taxation Act, 1881 (11 of 1881).
109. Payment to be made to a Board as service charges by Central Government or State
Government.—The Central or the State Government, as the case may be, shall pay to a Board annually
service charges for providing collective municipal services or development work in a cantonment where
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the Central or the State Government properties are situated as worked out by the Board based on the
guidelines issued in this behalf by the Central Government or the State Government.
110. Power to make special provision for conservancy in certain cases.—A Board may make
special provisions for the cleansing of any factory, hotel, club or group of buildings or lands used for any
one purpose and under one management, and may fix a special rate and the dates and other conditions for
periodical payment thereof, which shall be determined by a written agreement with the person liable for
payment of the conservancy or scavenging tax in respect of such factory, hotel, club or group of buildings
or lands:
Provided that, in fixing the amount, proper regard shall be had to the probable cost to the Board of the
services to be rendered.
111. Exemption in case of buildings.—(1) When in pursuance of section 110, a Board has fixed a
special rate for the cleansing of any factory, hotel, club or group of buildings or lands, such premises shall
be exempted from the payment of conservancy or scavenging tax imposed in the cantonment.
(2) The following buildings and lands shall be exempt from any property tax other than tax imposed
to cover the cost of specific services rendered by the Board, namely:—
(a) places set apart for public worship and either actually so used or used for no other purpose and
rendering services free of cost without deriving any income whatsoever;
(b) buildings used for educational purposes, public libraries, playgrounds and dharamshalas
which are open to the public and from which no income is derived;
(c) hospitals and dispensaries maintained wholly by charitable contributions;
(d) burning and burial grounds, not being the property of the Government or a Board, which are
controlled under the provisions of this Act;
(e) buildings or lands vested in a Board; and
(f) any buildings or lands, or portion of such buildings or lands, which are the property of the
Government.
112. General Power of exemption.—The Central Government may, by notification in the Official
Gazette, exempt, either wholly or in part from the payment of any tax imposed under this Act, any person,
or class of persons or any property or goods or class of property or goods.
113. Exemption of poor persons.—A Board may exempt, for a period not exceeding one year at a
time from the payment of any tax, or any portion of a tax imposed under this Act, any person who in its
opinion is by reason of poverty unable to pay the same.
114. Composition.—(1) The Board may, with the previous sanction of the General Commanding
Officer-in-Chief, the Command, allow any person to compound for any tax.
(2) Every sum due by reason of the composition of a tax under sub-section (1) shall be recoverable as
if it were a tax.
115. Irrecoverable debts.—The Board may write off any sum due on account of any tax or rate or of
the costs of recovering any tax or rate if such sum is, in its opinion, irrecoverable:
Provided that, where the sum written off in favour of any one person exceeds two thousand and five
hundred rupees, the sanction of the General Officer Commanding-in-Chief, the Command shall be first
obtained.
116. Obligation to disclose liability.—(1) The Chief Executive Officer, may, by written notice, call
upon any inhabitant of the cantonment to furnish such information as may be necessary for the purpose of
ascertaining—
(a) whether such inhabitant is liable to pay, or has correctly paid, any tax imposed under this Act;
(b) at what amount he should be assessed; or
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(c) the annual value of the building or land which he occupies and the name and address of the
owner or lessee thereof.
(2) If any person, when called upon under sub-section (1) to furnish information, neglects to furnish
it within the period specified in this behalf by the Chief Executive Officer or furnishes information which
is not true to the best of his knowledge or belief, he shall be punishable with fine which may extend to
five thousand rupees and shall also be liable to be assessed at such amount on account of tax as the Chief
Executive Officer may deem proper, and the assessment so made shall, subject to the provisions of this
Act, be final.
117. Immaterial error not to affect liability.—No assessment and no charge or demand on account
of any tax or fee shall be impeached or affected by reason only of any mistake in the name of any person
liable to pay such tax or fee, or in the description of any property or thing, or any mistake in the amount
of the assessment, charge or demand, if the directions contained in this Act and the rules and bye-laws
made thereunder have in substance and effect been complied with; but any person who sustains any
special damage by reason of any such mistake shall be entitled to recover such compensation for the
same, as the Board may decide.
118. Distraint not to be invalid by reason of immaterial defect.—No distress levied or attachment
made under this Chapter shall be deemed unlawful, nor shall any person making the same be deemed a
trespasser, on account only of any defect of form in the notice of demand, warrant of distress or
attachment and sale or other proceeding relating thereto; nor shall any such person be deemed a trespasser
ab initio on account of any irregularity afterwards committed by him; but any person who sustains any
special damage by reason of any such irregularity shall be entitled to recover such compensation for the
same, as the Board may decide.