LexThe Gujarat Education Cess Act, 1962
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GOVERNMENT OF GUJARAT
LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT
Gujarat Act No. XXXV of 1962
The Gujarat Education Cess Act, 1962
( As modified upto the 31st December, 2005)
[1962 : Guj. XXXV Gujarat Education Cess Act, 1962
THE GUJARAT EDUCATION CESS ACT, 1962.
CONTENTS.
PREAMBLE.
SECTIONS.
1. Short title and extent.
CHAPTER I.
PRELIMINARY.
2. Definitions.
CHAPTER II.
EDUCATION CESS AND THE STATE EDUCATION CESS FUND.
3. Education cess.
4. State Education Cess Fund.
CHAPTER III.
SURCHARGE ON LANDS.
A. Surcharge on agricultural lands.
5. Levy of surcharge on agricultural lands.
6. Assistance to superior holders.
B. Surcharge on lands used for non-agricultural purposes.
7. Levy of surcharge in addition to non -agricultural asse ssment in respect of
certain lands.
8. Collector to determine questions as to nature of use of land.
C. General provisions applicable to all categories of surcharges.
9. Manner of levying surcharges.
10. Right of holder to recover amounts of surcharge on non -agricultural
assessment from actual occupiers.
11. Amount of surcharge to be rounded to multiple of five naye paise.
CHAPTER IV.
TAX ON LANDS AND BUILDINGS
12. Tax on lands and buildings.
13. Exemption of certain lands and buildings from payment of tax.
14. Primary responsibility for tax on lands and buildings.
15. Authorities competent to collect tax, etc.
15A. Issue of certificate to specified disabled person and specified widow.
16. Penalty for failure to pay tax.
17. Tax to be first charge on lands and buildings on which it is leviable.
18. Recovery of tax from occupier of portion of land or building.
19. Person liable to pay tax entitled to recover amount from occupier of land or
building etc.
1962 : Guj. . XXXV ] Gujarat Education Cess Act, 1962
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SECTIONS.
20. Apportionment of liability for tax when lands or buildings are let and rateable
value exceeds amount of rent.
21. Rights and remedies for recovery of sums under section 19 or 20.
22. Amount recoverable under section 19 or 20 to exclude in computing annual
letting value.
23. Remission and refund.
23A. Suspension of collection of surcharge under section 5 in certain circumstances.
24. Default of local authority in collecting tax.
CHAPTER V.
MISCELLANEOUS.
25. Amounts of surcharges not to be included in land revenue in certain
circumstances.
26. Savings as to application of relevant Code.
26-A. Validity of surcharge or tax not levied in the same year.
27. Power of Government to reduce rate or remit surcharge or tax.
28. Power to make rules.
[1962 : Guj. XXXV Gujarat Education Cess Act, 1962
GUJARAT ACT No. XXXV OF 19621
[THE GUJARAT EDUCATION CESS ACT, 1962]
[9th October, 1962 ]
Amended by Guj. 26 of 1963.
Amended by Guj. 43 of 1963.
Amended by Guj. 29 of 1965.
Amended by Guj. 8 of 1970
Amended by Guj. 17 of 1972.
Amended by Guj. 25 of 1972.
Amended by Presi. 11 of 1974
Amended by Guj. 7 of 1976
Amended by Presi. 9 of 1976.
Amended by Guj. 14 of 1977.
Amended by Guj. 3 of 1978
Amended by Guj. 15 of 1980.
An Act to provide for the creation of a fund for the promotion of education in the State
of Gujarat and for the levy of education cess for the purpose and for matters connected
therewith.
It is hereby enacted in the Thirteenth Year of the Republic of India as follows :-
1. (1) This Act may be called the Gujarat Education Cess Act, 1962.
(2) It extends to the whole of the State of Gujarat.
CHAPTER I.
PRELIMINARY.
2. In this Act, unless the context otherwise requires-
(i) "annual letting value" means the rateable value or annual letti ng value or
gross annual letting value of lands and buildings as determined in accordance
with the relevant local authority law and includes annual value as defined by
section 64 of the Cantonments Act, 1924 :
Provided that, in a case where the property t ax is assessed on any
building or land on its capital value, such percentage of the capital value as
may be determined by the State Government shall be deemed to be the annual
letting value ;
(ii) "City of Ahmedabad" means the City of Ahmedabad as constituted for the
time being under the Bombay Provincial Municipal Corporations Act, 1949;
(iii) "Collector" includes an officer appointed by the State Government to
exercise the powers and perform the functions of the Collector under this Act ;
2[(iii-a) "disabled person" means a person who on account of injury, disease,
physical or mental condition arising from imperfect development of any organ
or otherwise, or congenital deformity is substantially handicapped in obtaining
or keeping employment, or in undertaking work on his own account, of a kind
which apart from that injury, disease, physical or mental condition or
deformity would be suited to his age, experience and qualifications;]
(iv) "education cess" means a surcharge or tax on lan ds and buildings levied
under this Act ;
(v) "lands" and "buildings" shall have the meanings respectively assigned to
them in the relevant local authority law ;
Short title and
extent.
Definitions.
II of 1924.
Bom. LIX of 1949
1962 : Guj. . XXXV ] Gujarat Education Cess Act, 1962
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(vi) "local authority" means a municipal corporation, municipality, notified
area committee, nagar panchayat, village panchayat or gram panchayat or other
body constituted under the relevant local authority law;
(vii) "prescribed" means prescribed by rules made under this Act ;
(viii) "property tax" means in the City of Ahm edabad the general tax levied
under the Bombay Provincial Municipal Corporations Act, 1949 and in other
urban areas a tax or rate on buildings or lands or a tax or rate in the form of such
tax or rate on buildings or lands levied under the relevant local authority law ;
(ix) "relevant Code" means-
(i) in relation to the Bombay and Saurashtra areas of the State, the
Bombay Land Revenue Code, 1879 ;
(ii) in relation to the Kutch area of the State, the Bombay Land
Revenue Code, 1879, as applied to that area ;
(x) "relevant local authority law" means-
(i) in relation to the City of Ahmedabad, the Bombay Provincial
Municipal Corporations Act, 1949;
(ii) in relation to a municipal borough-
(a) in the Bombay area of the State, the Bombay Municipal
Boroughs Act, 1925 ;
(b) in the Saurashtra area of the State, the Bombay Municipal
Boroughs Act, 1925 as adapted and applied to that area ;
(c) in the Kutc h area of the State, the Bombay Municipal
Boroughs Act, 1925, as applied to that area ;
(iii) in relation to a municipal district or notified area-
(a) in the Bombay area of the State, the Bombay District
Municipal Act, 1901 ;
(b) in the Saurashtra area of the State, the Bombay District
Municipal Act, 1901, as adapted and applied to that area ;
(iv) in relation to a panchayat, the Bombay Village Panchayats Act
1958;
(v) in relation to a nagar or gram, the Gujarat Panchayats Act, 1961 ;
and
(vi) in relation to a cantonment, the Cantonments Act, 1924;
3[(x-a) "specified disabled person" means a disabled person whose
principal means of livelihood is the income from the ren t of land or
building situated in an urban area and owned by him, the annual letting
value of which does not exceed two thousand rupees ;
(x-b) "specified widow" means a widow whose principal means of
livelihood is the income from the rent of land or building situated in an
urban area and owned by her, the annual letting value of which does
not exceed two thousand rupees;]
Bom. LIX of 1949.
Bom. V of 1879.
Bom. V of 1879
Bom. LIX of 1949.
Bom. XVIII of
1925.
Bom. XVIII of
1925.
Bom. XVIII of
1925.
Bom. III of 1901.
Bom. III of 1901.
Bom. III of 1959.
Guj. VI of 1962.
II of 1924.
[1962 : Guj. XXXV Gujarat Education Cess Act, 1962
(xi) "surcharge" means a surcharge levied under section 5 or 7;
(xii) "tax" means a tax on lands and buildings levied under section 12;
(xiii) "tenement" means a building or part of a building let or intended
to be let or occupied separately;
(xiv) "urban area" means an area which is for the time being included in
the limits of a city, municipal borough, municipal district, notified area
nagar or cantonment under the relevant local authority law and the
population of which is not less than 10,000;
Explanation.-For the purpose of this clause, "population"
means population as ascertained at the last preceding census.
(xv) "village industry" means an industry which is a village industry
within the meaning of the Bombay Khadi and Village Industries Act
1960;
(xvi) "village site" means the site of a village, town or city determined
under section 126 of the relevant Code ;
(xvii) words and expressions used but not defined in this Act shall-
(a) so far as the provisions of this Act relate to a surcharge on
lands have the meanings assigned to them in the relevant Code
and the rules made thereunder, and
(b) so far as the provisions of this Act relate to a tax on lands
and buildings shall have the meanings assigned to them in the
relevant local authority law.
CHAPTER II.
EDUCATION CESS AND THE STATE EDUCATION CESS FUND.
3. For the purpose of provid ing for the cost of promoting education in the State of
Gujarat, there shall be levied and collected in accordance with the provisions of this
Act an education cess which shall consist of-
(a) a surcharge on all lands except lands which are included withi n a village
site and not assessed to land revenue :
(b) a tax on lands and buildings in urban areas.
4. (1) The proceeds of the education cess and penalties (other than fines)
recovered under this Act, shall first be credited to the Consolidated Fund of the
State and after deduction of the expenses of collection and recovery therefrom
shall, under appropriation duly made by law in this behalf, be entered in, and
transferred to, a separate fund called the State Education Cess Fund.
(2) Any amount transferred to the State Education Cess Find under sub- section
(1) shall be charged on the Consolidated Fund of the State.
(3) The amount in the State Education Cess Fund shall be expended in such
manner and under such conditions as ma y be prescribed, for the purpose
mentioned in section 3.
Bom. XIX of 1960.
Education cess.
State Education
Cess Fund.
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CHAPTER III.
SURCHARGE ON LANDS.
A. Surcharge on agricultural lands.
5. (1) Subject to the provisions of this Act, with effect, from the revenue y ear
commencing on the 1st day of August, 1962, on all lands (except lands
included within a village site and not assessed to land revenue) which are
assessed or held for the purpose of agriculture and not used for any purpose
unconnected with agriculture, 4[there shall be levied a surcharge at the
following rates, that is to say-
Where the sum assessed on such land or otherwise payable to the State
Government as land revenue is-
(i) not more than fifty rupees, twenty paise on every rupees of
such sum,
(ii) more than fifty rupees, twenty five paise on every rupee of
such sum;]
Provided that where any such land-
(i) is wholly or partially exempt from payment
of land revenue, a sum which would have been
assessed on such land, had there been no
alienation of land revenue, or
5[(i-a) is held by a small holder as defined in
the Explanation to section 45 of the Bombay
Land Revenue Code, 1879 and no land revenue
is payable in respect thereof under the said
section 45, a sum which would have been
payable as land revenue by such small, holder
in respect thereof, had land revenue been
payable by such holder; or]
(ii) is liable to the payment of land revenue but
is unassessed, a sum which would have been
assessed on such land as land revenue,
shall be treated as the sum, on every
rupee of which the surcharge shall be leviable.
6[(1A) In computing the amount of surcharge payable under this section, the
amount shall if it is not a multiple of five paise, be increased to the next higher
multiple of five paise.]
(2) For the purposes of this section "land revenue" shall include water rate
levied under section 55 of the relevant "Code but shall not include—
(a) penalties and fines including any charge imposed under section 148
thereof as penalty or inte rest in case of default and any fine levied
under section 65 thereof;
(b) occasional fixed payments, in commutation of all claims of the
State Government in respect of a succession to or transfer of inams
payable on each such succession or transfer,
(c) land revenue on service inam lands recovered from inferior village
servants for periods of unauthorised absence from service and all other
such charges of assessment on inam and watans for broken periods and
past years, and
(d) fees for grazing when charged per head of cattle.
Levy of surcharge
on agricultural
lands.
Bom. V of 1879.
[1962 : Guj. XXXV Gujarat Education Cess Act, 1962
(3) For the purposes of this section, grass land, that is to say, land on which
grass grows naturally or grass is raised, shall be deemed to be land used for the
purpose of agriculture.
7[Explanation.—In this section "alienation of land revenue" includes
any concession granted by or under any law for the time being in force so as to
render any land not liable to the payment of any revenue or liable to the pay -
ment of land revenue at a sum lower than the sum of full assessment leviable on
such land; and such land shall be deemed to be wholly or, as the case may be,
partially exempt from the payment of land revenue for the purpose of this
section.]
6. The provisions of law relating to the assistance to be given to superior holders for the
recovery of their dues from their tenants and occupants under them, shall be applicable
to all superior holders, whether of alienated or un - alienated land in respect of the
recovery of the surcharge described in sec tion 5 from their tenants, or occupants and
shall be applicable also to occupants of land under the relevant Code, for the recovery
of the said surcharge from their tenants or joint occupants.
B. Surcharge on lands used for non-agricultural purposes.
7. (1) Notwithstanding any usage, custom or settlement or anything contained in
any agreement, sanad or order or a decree or order of a court or any law for the
time bei ng in force, on all unalienated lands on which non -agricultural
assessment is levied under the relevant Code and on all alienated lands .(except
lands included within a village site) which are used, or may hereafter be used,
for a purpose unconnected with agriculture there shall be levied and collected a
surcharge at the rate of-
(i) 12.50 per cent of the amount of non -agricultural assessment so
levied or as the case may be which would have been leviable had there
been no alienation of land revenue, if, the land be used for a residential
purpose or 8[for a village industry or for] any purpose other than trade,
commerce or industry or the carrying on of a profession or business
and be situate in an area where the rates of non-agricultural assessment
under the relevant Code have been fixed or revised within three years
immediately preceding the 1st day of August 1962;
(ii) 25 per cent of the amount of non-agricultural assessment so levied
or leviable, if the land be used for a residential purpose or for a village
industry or for any purpose other than trade, commerce or industry or
the carrying on of a profession or business, and be situate in any area to
which clause (i) does not apply;
(iii) 50 percent of the amount of non-agricultural assessment so levied
or leviable, where the land is used for any industry other than a village
industry;
(iv) 75 per cent of the amount of non-agricultural assessment so levied
or leviable, where the land is used for a commercial purpose or for the
purpose of 9[any trade, profession] or business :
Provided that where any land is simultaneously used for two or
more purposes and the part used for each such purpose is not separable,
the surcharge shall be levied at the highest rate applicable in relation to
any of the purposes for which the land is used.
10[(1A) Where any land is leased by the Government for a purpose unconnected
with agriculture and under the terms of such lease no non -agricultural
assessment is leviable on such land, then, notwithstanding anything contained
in the terms of such lease, there shall be levied and collected on such land a
surcharge at the rate specified in sub -section (1) on the amount which would
have been assessed on such land as non -agricultural assessment had such
assessment been leviable thereon.]
Assistance to
superior holders.
Levy of surcharge in
addition to
non-agricultural
assessment in
respect of certain
lands.
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(2) In the case of land on which because of its non -agricultural use the sur -
charge becomes leviable at the commencement of this Act, the surcharge under
sub-section (1) shall be levied and collected with effect from the revenue year
commencing on the 1st day of August, 1962 and in any other case it shall be
levied from the commencement of the revenue year during which the land
becomes liable for the payment of the surcharge.
8. Should any question arise under section 7 as to the nature of use of any land, the
Collector shall after holding a summary inquiry, decide the question.
C. General provisions applicable to all categories of surcharges.
9. The surcharge on lands described in section 5 or 7 shall be levied, so far as may be in
the same manner and under the same provisions of law, as the land revenue:
Provided that in the case of land in the possession of a tenant liable to pay the
land revenue thereon under the provisions of the relevant Code, he shall be primarily
liable for payment of the surcharge on it under section 5.
10. Where any land which is liable to a surcharge under section 7 or a portion thereof or
any building constructed thereon or any tenement therein or any part thereof is not in
the occupation of the person primarily liable to pay the non -agricultural assessment
and surcharge by virtue of the land or portion thereof or of the building or tenement or
part of the building being let, then notwithstanding anything contained in any
agreement or order or a decree or order of a court or any law for the time being in force
but without prejudice to the primary liability of such person as aforesaid, such person
shall be entitled to recover an amount equal to the amount of surcharge from the person
in actual occupation of the land or portion thereof or of the building, tenement or part
of the building in proportion to the area in the occupation of the person, as if the person
in actual occupation were liable to pay the surcharge.
11. The amount of the surcharge leviable under this Chapter shall, if it be not a multiple
of five naye paise, be increased to the next higher multiple of five naye paise.
CHAPTER IV.
TAX ON LANDS AND BUILDINGS.
12. 11[(1) Subject to the provisions of this Act, there shall be lev ied and collected
with effect from the 1st day of April 1970 a tax on lands and buildings situated
in an urban area at the following rates, that is to say :-
(a) where a building or land is used for residential purposes or
any-purpose other than trade, co mmere or industry or the carrying on
of a profession or business-
(i) if the annual letting value thereof exceeds three hundred
rupees but does not exceed one thousand rupees, at the rate of
three per cent. of the annual letting value ;
(ii) if the annua l letting value thereof exceeds one thousand
rupees but does not exceed two thousand and five hundred
rupees, at the rate of five per cent of the annual letting Value ;
(iii) if the annual letting value thereof exceeds two thousand
and five hundred rupees but does not exceed four thousand and
five hundred rupees, at the rate of six per cent of the annual
letting value ;12[ * ].
13[(iv) if the annual letting value thereof exceeds four thousand
and five hundred rupees but does not exceed six thousand
rupees, at the rate of seven per cent, of the annual letting value
; and
(v) if the annual letting value thereof exceeds six thousand
rupees, at the rate of ten per cent of the annual letting value,
Collector to
determine questions
as to nature of me of
land.
Manner of levying
surcharges.
Right of holder to
recover amounts of
surcharge or
non-agricultural
assessment from
actual occupiers.
Amount of
surcharge to be
rounded to multiple
of five naye paise.
Tax on lands and
buildings.
[1962 : Guj. XXXV Gujarat Education Cess Act, 1962
and]
14[(b) where a building or land is used for the purpose of trade,
commerce or industry, or the carrying on of a profession or business ,-
(i) if the annual letting value thereof exceeds three hundred
rupees but does not exceed one thousand rupees, at the rate of
seven per cent. of the annual letting value ;
(ii) if the annual letting value thereof exceeds one thousand
rupees but does not exceed two thousand and five -hundred
rupees, at the rate of eleven per cent of the annual letting value
;
(iii) if the annual letting value thereof exceeds four thousand
and five hundred rupees but does not exceed six thousand
rupees, at the rate of Sixteen per cent. Of the annual letting
value ;
15[(iv) if the annual letting value thereof exceeds four thousand
and five hundred rupees but does not exceed six thousand
rupees, at the rate of sixteen per cent. of the annual letting value
;
(v) if the annual letting value thereof exceeds six thousand
rupees, at the rate of twenty per cent. of the annual letting
value.] ]
16[provided that on any such land or building owned by
a specified widow or a specified disabled person, the tax shall
be levied and collected at half of such rate :
Provided further that no tax shall be levied on such land
or building if it is actually occupied by such widow, or, as the
case may be, disabled person, or if it is unlet.]
(2) Where any building consists of more tenements than one, irrespective of
such tenements not being separately assessed to the property tax, the tax under
this section shall be assessed on the annual letting value of each such tenement
as if it were a building.
(3) Where any land, building, tenement or a part of a building is separately
assessed to tax but is simultaneously used for two or more purposes mentioned
in sub-section (1), the tax under this section shall be levied at the highest rate
applicable in relation to any of the purposes for which the land, building,
tenement or part of the building is used.
(4) In computing the amount of tax payable tinder this section, the amount
shall, if it is not a multiple of five naye paise, be increased to the next higher
multiple of five naye paise.
13. The tax under section 12 shall not be leviable in respect of the following, that is to
say-
(1) buildings and lands vesting in the Central Government ;
(2) buildings and lands vesting in the State Government, or belonging to a local
authority, local board, taluka panchayat, district panchayat or a Cantonment
Board and used solely for public purposes and not used or intended to be used
for purposes of profit ;
(3) any building or land or class of buildings or lands, which the 17[State
Government, if it considers it necessary to do so in the public interest, may] by
notification in the Official Gazette, exempt from payment of the tax under
section 12:
Provided that-
Exemption of
certain lands and
buildings from
payment of tax.
1962 : Guj. . XXXV ] Gujarat Education Cess Act, 1962
11 of 16
(i) every such notification shall be laid for not less than thirty
days before the State Legislature as soon as possible after it is
published, and shall be subject to rescission by the State
Legislature, or to s uch modification as the State Legislature
may make, during the session in which it is so laid or the
session immediately following ; and
(ii) any rescission or modification so made shall be published
in the Official Gazette and shall thereupon take effect.
14. (1) Where the actual occupier of any land or building is the owner thereof or
holds it on a building or other lease granted by or on behalf of Government or a
local authority or on a building le ase from any person, then the tax shall be
leviable primarily on such occupier :
18[Provided that in the City of Ahmedabad, if any land has been let for
any term exceeding one year to a tenant and such tenant has built upon the land,
the tax assessed upon the said land and upon the building erected thereon shall
be primarily leviable from the said tenant or any person deriving title from the
said tenant by the operation of law or by assignment or transfer but not by
sub-lease or the legal representative of the said tenant or person, whether the
premises be in the occupation of the said tenant or person or legal
representative or a sub-tenant.]
(2) In any other case, the said tax shall be leviable primarily as follows, that is
to say-
(a) if the land or building is let, upon the lessor ;
(b) if the land or building is sub-let, upon the superior lessor ;
(c) if the land or building is unlet, upon the person in whom the right to
let vests.
15. (1) The tax under section 12 shall be collected —
(a) in the Cantonment of Ahmedabad, by the Collector of Ahmedabad ;
and
(b) in other urban areas, by the respective local authorities concerned :
Provided that where a local authority is not for the time being
levying a property tax or where a local authority has made a default in
the collection of the tax or payment thereof to the State Government,
the State Government may by order direct that the tax shall be collected
by the Collector.
(2) The collection of the tax (incl uding any penalty) under this Act shall be
made-
(a) in the Cantonment of Ahmedabad, as an arrear of land revenue;
(b) in any other urban area, in the same manner in which the property
tax is collected in that area under the relevant local authority law or
where a direction under clause (6) of sub-section (1) has been issued in
such manner as may be prescribed.
(3) The collection of the tax and the recovery of penalty under this Act on
behalf of any local authority shall be made by the appropriate author ity
appointed to collect the property tax on behalf of such local authority under the
law under which the local authority is constituted.
(4) The local authority shall, in respect of the cost of collection of the tax, be
entitled to such rebate as may be prescribed, and different rates of rebate may
be provided for different urban areas.
Primary
responsibility for
tax on lands and
buildings.
Authorities
competent to collect
tax, etc.
[1962 : Guj. XXXV Gujarat Education Cess Act, 1962
19[15A. (1) Every person claiming to be a specified widow, or a specified disabled
person for the purposes of this Act shall apply to the officer authorised by the
State Government in the prescribed form for the issue of a certificate that the
person so claiming is a specified widow or a specified disabled person, as the
case may be.
(2) On receipt of such application, the officer so authorised shall, after making
such inquiry as he deems fit, decide whether such person is a specified widow
or a specified disabled person, as the case may be, and the decision of such
officer shall, subject to an appeal to the State Government, be final.
(3) If the officer decides that such person is a specified widow or, as the case
may be, a specified disabled person, he shall issue a certificate to that effect in
the prescribed form to such person.
(4) Notwithstanding anything contained in sub -sections (1), (2) and (3), if at
any time, on receipt of an application or otherwise, the State Government or the
officer authorised by the State Government under sub -section (1) is satisfied
after making such inquiry as may be t hought fit and giving reasonable
opportunity to be heard to the person concerned, that any person to whom a
certificate given under sub-section (3) has ceased to be a specified widow, or as
the case may be, a specified disabled person, the State Government or such
officer may, by order in writing, direct that with effect from such date as may
be specified in the order such person shall cease to be a specified widow, or, as
the case may be, specified disabled person, and thereupon any certificate
granted to such person under sub -section (3) shall stand revoked and such
person shall be bound to surrender the same to the State Government.]
16. (1) If any person, on being served with a notice of demand for the collection of
tax in pursuance of the provisions of section 15, fails to pay within the period
mentioned in the notice, any amount due from him on account of tax, the local
authority, Collector or, as the case may be, the Collector of Ahmedabad, on
being satisfied that such person has wilfully failed to pay the tax, may, subject
to the general or special orders of the State Government recover from him as
penalty a sum not exceeding one fourth of the amount of the tax BO unpaid, in
addition to the amount of tax payable by him.
(2) Sums recoverable under this section shall be recovered in the manner
provided in section 15 for the collection of tax.
17. Notwithstanding anything contained in any law and notwi thstanding any rights
arising out of any contract or otherwise howsoever, all sums due as tax or penalty, in
respect of any land or building shall, subject to prior payment of the land revenue (if
any) thereon due to the State Government be a first charge-
(a) in the case of any land or building held immediately from the Government,
upon the interest in such land or building of the person liable for such tax or
penalty, and upon the goods and other movable property, if any, found within
or upon such land or building and belonging to such person ; and
(b) in the case of any other land or building, upon such land or building and
upon the goods and other movable properties, if any, found within or upon such
land or building and belonging to the person liable to pay such tax or penalty.
18. On the failure to recover any sum due on account of tax from the person primarily
liable therefore, there may be recovered from the occupier of any part of the l and or
building in respect of which the tax is due, such portion thereof as bears to the total
amount of the tax due the same ratio which the rent annually payable by such occupier
bears to the aggregate amount of the annual letting value thereof.
19. 20[(1) If any person from whom under the provisions of section 12, the tax is
leviable pays the tax in respect of any land or building, he shall, if he be not
himself in occupation thereof during the period for which, he has paid the tax,
be entitled to recover from the person, if any, in actual occupation of such land
or building for such period,-
Issue of certificate
to specified disabled
person and specified
widow.
Penalty for failure to
pay tax.
Tax to be first
charge on lands and
buildings on which
it is leviable.
Recovery of tax
from occupier of
portion of land or
building.
Person liable to pay
tax entitled to
recover amount
from occupier of
land or building etc.
1962 : Guj. . XXXV ] Gujarat Education Cess Act, 1962
13 of 16
(a) an amount not exceeding half the amount of the tax, if such land or
building is used for the public charitable purposes by a public trust
registered under the Bombay Public Trusts Act, 1950, or for residential
purposes,
(b) full amount of the tax, if such land or building is used for the
purposes of trade commerce or industry or carrying on of profession or
business or for the purposes other than those specified in clause (a).]
(2) Where tax is paid in respect of any building consisting of more tenements
than one, by the person primarily liable or on his behalf, he shall be entitled to
recover, 21[from the occupiers of the tenements 22[amounts recoverable under
the provisions of sub -section (1)]] pro rate to the amount of rents for which
such tenements are iet :,
23[Provided that if the person who has paid tax under the provisions of
section 12 is a specified widow or a specified disabled person, such widow or
disabled person shall be entitled to recover the full amount paid by her, or as
the case may be, him, from the person in occupation of the land, b uilding or
tenement, as the case may be, in respect of which the tax has been so paid. ]
24[Provided further that], no such recoveries shall be made in respect
of-
(a) any tenement in occupation of such person or any person
acting on his behalf, or
(b) any tenement the tax on which by the terms of the tenancy,
such person has agreed to pay for its occupier.
(3) The recovery of any amount of tax from an occupier under this section shall
not be deemed to be an increase for the purposes o f section 7 of the Bombay
Rents, Hotel and Lodging House Rates Control Act,1947, or any law
corresponding thereto.
20. (1) If any land or building assessed to tax is let, and the rateable value thereof
exceeds the amount of rent payable in respect thereof to the person from whom
under the provisions of section 14 the tax is leviable, he shall be entitled to
recover 25[from his tenant not more than half of the difference] between the
amount of the tax levied upon him and the amount which would have been
leviable had the tax been calculated on a rateable value equal to the amount of
rent payable to him :
26[Provided that where such person is a specified widow or a specified
disabled person, he or she, as the case may be, shall be entitled to recover from
the tenant not more than the full amount of such difference.]
(2) Where such land or building had been sublet and the rateable value exceeds
the ren t recoverable by the tenant from the sub -tenant, the tenant shall be
entitled to recover 27[from his sub-tenant not more than half of the difference]
between the amount of tax levied and the tax which would have been leviable
had it been calculated on a rateable value equal to such rent :
Provided that the amount recoverable shall not exceed the amount
recovered from the tenant under the provisions of sub-section (1).
(3) Where such land or building is held by a person holding under a sub- tenant,
the pro visions of sub -section (2) shall apply mutatis mutandis as if the
sub-tenant had been the tenant and such person the sub-tenant.
21. Any person entitled to recover any sum under section 19 o r 20 shall have for the
recovery thereof, the same rights and remedies as he would have if such sum were rent
payable to him by the person from whom he is entitled to receive the same.
Bom. XXIX of
1950.
Bom LVII of 1947.
Apportionment of
liability for tax
when lands or
buildings are let and
rateable value
exceeds amount of
rent.
Rights and remedies
for recovery of sums
under section 19 or
20.
[1962 : Guj. XXXV Gujarat Education Cess Act, 1962
22. Any amount which is liable to be recovered under section 19 or 20 shall not be
deemed to be a part of the rent of the land, building, tenement or part of the building for
the purpose of computing the annual letting value thereof for the purpose of the levy of
any property tax or a tax under this Act.
23. (1) Where any land or building is assessed to tax, and if in respect of such land
or building or portion thereof, a draw -back (if any) or remission or refund of
property tax is sanctioned or granted on or after the 1st day of August 1962
under the relevant local authority law, then the local authority, or as the case
may be, the Collector shall remit or refund such portion of the tax, in such
manner and subject to such conditions as may be prescribed.
(2) Where any building assessed to tax is situated in the City of Ahmedabad
and if such building or any portion thereof is demolished or removed otherwise
than by order of the Municipal Commissioner and notice in re spect of such
demolition or removal has been given to the Commissioner under the relevant
local authority law, the municipal corporation constituted under such law shall
remit or refund such portion of the tax in such manner and subject to such
conditions as may be prescribed.
(3) The burden of providing the facts entitling any person to claim relief under
this section shall lie upon him.
28[23-A. Whenever from any cause the payment of the whole land revenue payable to
Government in respect of any land or in respect of lands assessed for agriculture in any
area is suspended, the collection of surcharge leviable under section 5, shall in respect
of such land, or, as the case may be, in respect of all lands described in section 5 which
are situated in such area, be suspended for the period for which the payment of land
revenue is suspended.]
24. (1) If any local authority makes default in the collection or payment to the State
Government of any sum due in respect of the tax on lands and buildings under
this Act, the State Government may, after holding such inquiry as it thinks fit,
fix a period for the collection or payment of such sum or direct the recovery of
the tax in such manner as may be prescribed.
(2) If the collection or payment of the sum is not made within the period so
fixed the State Government may, notwithstanding anything contained in any
law relating to the funds vesting in such local authority or any other law for the
time being in force, direct any bank in which any moneys of the local authority
are deposited or the person in charge of the Government treasury or of any
other place of security in which the moneys of s uch local authority are
deposited, to pay such sum from such moneys as may be standing to the credit
of the local authority in such bank, or as may be, in the hands of such person or
as may from time to time be received from or on behalf of the local authority by
way of deposit by such bank or person ; and such bank or person shall be bound
to obey such order.
(3) Every payment made pursuant to an order under sub -section (2) shall be a
sufficient discharge to such bank or person from all liability to the l ocal
authority in respect of any sum so paid by it or him out of the moneys of the
local authority so deposited with such bank or person.
CHAPTER V.
MISCELLANEOUS.
25. (1) In computing the average of the land revenue for the purposes of section
195 of the Gujarat Panchayats Act, 1961 the amounts of the surcharges levied
under this Act and collected or recovered during any revenue year shall,
notwithstanding anything contained in that Act, be excluded.
(2) The amounts of surcharges levied under this Act shall not be treated as land
revenue for the purposes of the levy of any cess on land revenue under the said
Act or any other law for the time being in force.
Amount recoverable
under section 19 or
20 to exclude in
computing annual
letting value.
Remission and
refunds.
Suspension of
collection of
surcharge under
section 5 in certain
circum- stances.
Default of local
authority in
collecting tax.
Amounts of
surcharges not to be
included in land
revenue in certain
circumstances.
Guj. VI of 1962.
1962 : Guj. . XXXV ] Gujarat Education Cess Act, 1962
15 of 16
26. Nothing in this Act shall, in any way be deemed to affect the application of any of
the provisions of the relevant Code and the rules and orders made thereunder to lands
to which this Act applies and to the rights and obligations of persons in respect of such
lands, in so far as the said provisions are not in any way inconsistent with the express
provisions of this Act.
29[26-A. Nothing in the relevant Code or the relevant local authority law shall affect the
assessment, levy, collection or recovery of any surcharge or tax leviable under this Act
for any year or part thereof merely by reason of the fact that the surcharge or as the case
may be, tax was not assessed or the demand therefor was not made during the year or
part for which it was leviable].
27. The State Government may in such circumstances and subject to such conditions as
may be prescribed, reduce the rate of any surcharge or tax or remit wholly or in part any
amount of surcharge or tax either generally or specially in respect of any land, or class
of lands or any building or class of buildings.
28. (1) The State Government may, by notification in the Official Gazette, make
rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:-
(a) the manner in which and conditions under which the amount in the
State Education Cess Fund shall be expended under section 4;
(b) the manner of collecting tax in urban areas where any property tax
is not levied and the rates of rebate under section 15;
30[(bb) the form of application and the form of certificate under section
15-A;]
(c) the manner in which and the conditions subject to which, the tax
shall be remitted or refunded under section 23;
(d) circumstances in which and condit ions subject to which reduction
in the rates of surcharge and the tax may be made or surcharge or tax
may be remitted under section 27;
(e) such other matters which in the opinion of the State Government are
required to be prescribed by rules.
(3) The power to make rules conferred by this section shall, except on the first
occasion of the exercise thereof, be subject to the condition of the rules being
made after previous publication.
(4) All rules made under this section shall be published in the Official Gazette
ana shall be laid for not less than thirty days before the State Legislature as
soon as possible after they are made, and shall be subject to rescission by the
Legislature, or to such modification as the Legislature may make, during the
session in which they are so laid, or the session immediately following.
(5) Any rescission or modification so made by the State Legislature shall be
published in the Official Gazette and shall thereupon take effect.
---------------------------------------------
Savings as to
application of
relevant Code.
Validity of
surcharge or tax not
levied in the same
year.
Power of
Government to
reduce rate or remit
surcharge or tax.
Power to make
rules.
[1962 : Guj. XXXV Gujarat Education Cess Act, 1962
1 For Statement of Objects and Reasons, See Gujarat Government Gazette Part V, Pages 153 and 154.
Please see section 3 of Guj. 29 of 1985.
Section 6 of Guj. 8 of 1970 reads as under –
"6 Notwithstanding the amendments made in section 19 and 20 of the principal Act by this Act, a person shall
be entitled to recover the amount of tax under the said section 19 or, as the case may be, the amount of
difference under the said section 20 in relation to the tax levied for any period prior to the commencement of
this Act, whether the tax is paid before or after such commencement, as if this Act, had not been passed".
Savings.
Please see section 10 of Guj. 17 of 1972.
For Validation of collection and recovery of education cess by officers who were not Collectors, see s. 2 of
Presi. Act No. 11 of 1974.
For Validation of Excerpt shown. Open the full act in Lexace.