IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC FRIDAY, THE 7TH MARCH 2008 / 17TH PHALGUNA 1929 W.P(C).No. 7126 of 2007(W) ---------------------------------- PETITIONER: -------------- NOORIYYA YATHEEM KHANA, PATTIKKAD, POOPPALAM, P.O. VALAPUR, MALAPPURAM DT. REPRESENTED BY ITS SECRETARY. BY ADV. SRI.K.M.SATHYANATHA MENON RESPONDENTS: ----------------- 1. THAHSILDAR, PERINTHALMANNA, MALAPPURAM DISTRICT. 2. THE SECRETARY, DEPARTMENT OF REVENUE, TRIVANDRUM. 3. THE STATE OF KERALA, REPRESENTED BY SECRETARY, DEPARTMENT OF REVENUE, TRIVANDRUM. BY GOVT. PLEADER, SRI. C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/03/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. = = = = = = = = = = = = = = = W.P. (C) No. 7126 OF 2007 - W = = = = = = = = = = = = = = = Dated this the 7th day of March, 2008 J U D G M E N T The challenge in this writ petition is against Ext. p12 and the petitioner seeks a declaration that the petitioner's building is entitled to get exemption from payment of building tax in terms of Section 3 of the Kerala Building Tax Act. Paragraphs 4 and 5 of Ext. P12 Govt. Order reads as follows: “4. It is seen that a building cannot be exempted from Building Tax solely due to the reason that it belongs to a charitable institution or that the income derived by letting out the same is used for charitable purpose. The only relevant fact in deciding the claim for exemption is the purpose for which the building is used. In this case the building belonging to the petitioner is not used for any charitable purpose and therefore the same cannot be exempted from building tax. 5. In these circumstances, Government order that the building owned by Nooriya Yatheem Khana, situated in Perinthalmanna Taluk, Pattikkad, Valambur which is used as a shopping complex is not eligible for building tax exemption under section 3(1)(b) of Kerala Building Tax Act, 1975 and the request of the petitioner in this regard is rejected.” The fact that exemption is claimed in respect of a commercial complex is not in dispute. However, the petitioner only contends W.P.(C) No. 7126 OF 2007 - 2 - that the income generated from the commercial complex is used for charitable purposes and therefore, it is entitled to the benefit of exemption provided in the section. 2. In my view, the petitioner cannot claim the benefit. Section 3(1)(b) provides that nothing in the Kerala Building Tax Act shall apply to buildings used principally for religious, charitable or educational purposes or as factories or workshops. Therefore to be eligible for the benefit of exemption, what is relevant is the principal use of the building and if the principal use of the building is for charitable or religious or educational purposes, such building is entitled to the benefit of exemption. 3. In this case, the building in question is a shopping complex and therefore going by the plain terms of the section, the building is not entitled to the exemption provided for. It may be true that the income generated from the building is used for charitable purposes. However, Section 3 being a provision for exemption from the tax payable under the Act, has to receive strict interpretation and in view of the plain words of the section, the user of the income generated is not relevant while determining the W.P.(C) No. 7126 OF 2007 - 3 - eligibility of the building to be exempted from payment of tax. Therefore, there is nothing illegal in Ext. P12. 4. Petitioner, however, contends that in view of the financial constraints and it being a charitable institution, a reasonable time be given for payment of building tax that is already assessed. Having regard to this submission, I direct that the amount due from the petitioner will be permitted to be paid in 6 equal monthly instalments the first of which will be payable in the first week of April, 2008 and the subsequent instalments will be payable in the first week of every succeeding month. Writ petition is disposed of as above. ANTONY DOMINIC JUDGE jan/-