SR. ABEL CSC v. STATE OF KERALA

MS.RESHMITA RAMACHANDRAN-GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 1258 OF 2024. 2 J U D G M E N T The present writ petition has been filed impugning Exts.P2, P5 & P8 assessment, appellate and revisional orders, respectively, and Ext.P9 demand notice.

2. The petitioner’s building No.XV/225-A situated in Parappukkara Grama Panchayat was assessed under the provisions of the Kerala Building Tax Act, 1975 (‘Act’, for short) for payment of building tax for an amount of Rs.5,73,300/-. Before the assessing authority, the petitioner claimed exemption from payment of the building tax on the ground that the petitioner is a registered charitable institution under Section 12A of the Income Tax Act, 1961. The building is owned by the convent which belongs to congregation of Sisters of Charity of De-paul Province. Construction of the new building is meant for residential accommodation of the members of the convent, and that therefore the petitioner's WP(C) NO. 1258 OF 2024. 3 building is liable to be exempted from payment of building tax under Section 3(1)(b) of the Act. The assessing authority, however, did not agree with the stand of the petitioner and assessed the building for tax for an amount of Rs.5,73,300/-. Aggrieved by the said order in Ext.P2, the petitioner filed appeal before the Revenue Divisional Officer under Section 11 of the Act. However, the said appeal came to be rejected and the stand of the petitioner that the petitioner's building is liable to be exempted from payment of building tax under Section 3(1)(b) of the Act, has been rejected by the appellate authority. The petitioner’s revision before the District Collector also came to be rejected.

3. Learned counsel for the petitioner submits that during the assessment proceedings, if the question of exemption from payment of building tax arises in respect of the building, the matter is required to be referred to the State Government and the assessing authority should not decide the issue WP(C) NO. 1258 OF 2024. 4 himself. He further submits that Section 3(2) of the Act empowers only the State Government to decide the question of exemption, after issuing notice to the interested parties and an opportunity of being heard.

4. In the present case, when the petitioner's institution has been granted exemption under Section 12A of the IT Act and when this specific issue was raised by the petitioner before the authorities, the authorities are bound to refer the matter to the State Government before proceeding with the assessment proceedings.

5. Ms.Reshmita Ramachandran, learned Government Pleader, does not dispute the legal position that the State Government is only empowered to decide the question of exemption from payment of building tax under Section 3(2) of the Act.

6. Considering the aforesaid legal position, I am of the view that the petitioner should be given an opportunity to approach the State WP(C) NO. 1258 OF 2024. 5 Government with a proper application seeking exemption from payment of the building tax in respect of the building, which was assessed by the assessing authority and the appeal and revision filed against the same were rejected. In view thereof, the petitioner is permitted to file an application within a period of fifteen (15) days from today before the State Government claiming exemption from payment of building tax, and if such an application is filed as above, the State Government should decide the application within a period of two months thereafter, in accordance with law.

7. Till a decision is taken within a period of two months on the application so to be filed by the petitioner as above, the impugned demand notice at Ext.P9 shall be kept in abeyance. If the claim of the petitioner for exemption from payment of building tax is denied, the authority will be free to enforce the demand in accordance with Ext.P9 notice. WP(C) NO. 1258 OF 2024. 6 The present writ petition is disposed of as above. Pending interlocutory application, if any, in the present writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE WP(C) NO. 1258 OF 2024. 7 APPENDIX OF WP(C) 1258/2024 PETITIONER EXHIBITS Exhibit P1 Exhibit P2 A TRUE COPY OF THE LETTER DATED 27.12.2002 OF THE PETITIONER SUBMITTED BEFORE THE TAHSILDAR A TRUE COPY OF THE ORDER NO.G2/124468- 201584/2022 DATED 23.03.2023 BY TAHSILDAR, ASSESSING AUTHORITY, MUKUNDAPURAM TALUK Exhibit P2(a) A TRUE COPY OF THE TRANSLATION OF EXT P2 Exhibit P3 Exhibit P4 A TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE REVENUE DIVISIONAL OFFICER, DATED 05.06.2023 A TRUE COPY OF THE RECEIPT 19.05.2023 FOR RS.1,43,773/- ISSUED BY THE VILLAGE OFFICER, THOTTIPPAL Exhibit P4(a) A TRUE COPY OF THE TRANSLATION OF EXT P4 Exhibit P5 A TRUE COPY OF THE ORDER NO.RDOIJK/611/2023/A2/K.DIS. DATED 07.08.2023 ISSUED BY THE REVENUE DIVISIONAL OFFICER, IRINJALAKUDA Exhibit P5(a) A TRUE COPY OF THE TRANSLATION OF EXT P5 Exhibit P6 Exhibit P7 A TRUE COPY OF THE REVISION PETITION DATED 09.09.2023 SUBMITTED BY THE PETITIONER BEFORE THE DISTRICT COLLECTOR A TRUE COPY OF THE RECEIPT FOR RS.1,44,339/- DATED 11.09.2023 ISSUED BY THE VILLAGE OFFICER, THOTTIPPAL WP(C) NO. 1258 OF 2024. 8 Exhibit P7(a) A TRUE COPY OF THE TRANSLATION OF EXT P7. Exhibit P8 A TRUE COPY OF THE ORDER NO.DCTSR/9870/2023-GB DATED 23.11.2023 ISSUED BY THE DISTRICT COLLECTOR, THRISSUR Exhibit P8(a) A TRUE COPY OF THE TRANSLATION OF EXT P8 Exhibit P9 A TRUE COPY OF THE LETTER NO.G2-124468- 201584/2022 DATED 02.12.2023 ISSUED BY TAHSILDAR Exhibit P9(a) A TRUE COPY OF THE TRANSLATION OF EXT P9