The Kerala High Court recently reiterated a crucial principle in tax law — once a tax is assessed, the entire amount has to be paid unless there is a provision under an amnesty scheme. The Court was addressing a plea by a petitioner seeking partial payment acceptance in lieu of the full building tax amount assessed.
The judgment was delivered by Justice Bechu Kurian Thomas, who emphasized that after an assessment order becomes final, the taxpayer is obligated to pay the full amount unless a special provision like an amnesty scheme is applicable.
“The assessee had even acquiesced into the order by paying the first instalment and thereafter he has turned around and now requests for acceptance of a portion of the amount in satisfaction of the entire tax assessed. Such a procedure is unheard in law. Once tax has been assessed, the entire amount has to be paid, unless there are amnesty schemes,”
– Justice Bechu Kurian Thomas
Background of the Case
In this case, the petitioner is the owner of a building constructed under a permit. After completion, the property was assessed for building tax under the Kerala Building Tax Act, 1975. The assessment fixed the tax liability at ₹12,42,800.
Initially, the petitioner complied with the assessment and paid the first instalment of the total tax. However, later, he submitted a letter to the assessing authority requesting to cancel the ongoing proceedings and instead accept only a portion of the assessed amount as final payment.
The assessing authority declined the request. It cited that the assessment order had already been passed on 27.01.2023, and since the petitioner defaulted in paying the due amount fully, revenue recovery proceedings were already in motion.
The petitioner also contested the assessment order before the Kerala High Court, claiming that the tax should be assessed based on the plinth area mentioned in the approved plan from the local authority.
However, the High Court did not accept this line of argument. It clarified the legal standing of assessment orders under the Kerala Building Tax Act, 1975.
“Once an order of assessment is passed, the assessing authority becomes practically functus officio for the purpose of building tax.”
– Kerala High Court
This means that after an assessment is finalized, the assessing officer has no further role to play regarding changes or settlements on that assessment. The only legal recourse for an aggrieved party is to file an appeal or revision as per the provisions in the statute.
Since the petitioner did not file a statutory appeal or revision, the High Court held that the order of assessment attained finality.
The Court also remarked that approaching the High Court under Article 226 of the Constitution of India in such situations is inappropriate. This constitutional remedy is not a substitute for statutory remedies available under specific laws.
“The remedy of a person aggrieved by an order of assessment is to prefer statutory appeal and revision as provided under the Act. In the absence of any statutory remedy invoked by the petitioner, the assessment order became final. Therefore, recourse to Article 226 of the Constitution of India is not proper.”
– Kerala High Court
In view of the above, the bench dismissed the petition.
Case Title: C.Y Cherian v. State of Kerala
Case Number: WP(C) NO. 13425 OF 2025
Counsel for Petitioner/ Assessee: Nirmal V Nair
Counsel for Respondent/ Department: Jasmin M.M
