Cases
JUDGMENT
Mohd Zawawi Salleh FCJ:
Introduction
[1] These appeals concern the proper construction of the definition of "machinery" in the proviso (b) to the definition of "annual value" under s 2 of the Local Government Act 1976 ("LGA"). The proviso exempts "machinery" for the "making of an article" located in a holding from being rated. Under the scheme of the LGA, rates are payable based on the annual value of a holding.
[2] The dispute has arisen because the appellant, Majlis Daerah Hulu Terengganu, which is the rating authority in the district where the respondent's hydroelectric power station in Kenyir Dam is located, took into account the building as well as the Dam, Diversion Water Tunnel, Tunnel Liners And Pipelines, Spillway And Closure Of Dam Outlet ("the 5 elements") in coming to their assessment that the annual value of the property was RM33,350,000.00.