While I agree with the general advice provided by my colleague above, I DISAGREE with his statement that "From what you have stated, it seems that the municipality already obtained judgement against you." I don't know how my colleague can say this because nothing that you've said above suggests that a default judgment was taken against you! There is accordingly no reason to apply for a default judgment, so please don't worry about that. Also, I disagree about the credit bureau and the fact that you will need to apply for a rescission of the judgment "already taken"......
The rest of the advice is correct. Phone the attorneys acting for the municipality and give them a copy of the proof of payment for your rates account. Tell them "that the judgment debt has been settled in full", and that you are "tendering to pay the party party legal charges for the issuing of the summons". It won't be more than about R700 in total. If it is much more than that ask for a "itemised bill of costs".
You should also confirm this all in writing so that if they try to take a default judgment against you, you can THEN apply for a rescission since you've got proof that you had settled the judgment debt.
If you wanted to cover your bases - which I think that you SHOULD - you should complete the "notice to defend" which appears on page 2 / 3 of the summons, and give a copy of that to the attorneys (with a letter saying that you've just covering your bases, but you've already paid) and ALSO a copy to the Magistrates Court where the summons was issued out of. They must stamp your copy and keep the original in the court file. You must then KEEP your copy as proof!
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Good luck and best regards,