Service charge

Plywood Institute Challenges BBMP Service Fee Request Notice

The high court on Wednesday ordered notices to the state government and the BBMP on a petition filed by the Peenya-based Plywood Industries Research and Training Institute.

The request challenged the formal notice issued by the BBMP for the recovery of service charges. A divisional bench headed by Chief Justice Ritu Raj Awasthi ordered the BBMP not to rush the case based on the opinions.

The institute is under the administrative supervision of the Ministry of Environment, Forests and Climate Change. In the petition, he said that while the Assistant Revenue Officer of BBMP, Lakshmidevi Nagar Sub-division sent repeated notices of request, he sealed the main gate and installed a banner on February 5, 2020. The latest notice of application, issued on September 13, 2021, requested the institute to pay Rs 3.75 crore in service charges for residential and commercial properties for the period between 2001-02 and 2021-22.

The institute argued that the state or its authorities have no legislative authority to impose taxes on building land owned by the union government based on the use of land and buildings, including service charges, in the absence of any service rendered by the BBMP. He challenged Section 110 (1) (j) of the KMC Act arguing that it is contrary to Section 285 (1), with respect to the classification of land and buildings belonging to the Union India based on the use of land and buildings.

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