IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN FRIDAY, THE 30TH JANUARY 2009 / 10TH MAGHA 1930 WP(C).No. 35537 of 2008(E) -------------------------- PETITIONER(S): --------------- INDIRA GANDHI MEMORIAL TRUST, NELLIKUZHI P.O., KOTHAMANGALAM, REPRESENTED BY ITS CHAIRMAN. BY ADV. SRI.K.JAJU BABU SMT.M.U.VIJAYALAKSHMI SRI.BRIJESH MOHAN RESPONDENT(S): --------------- 1. STATE OF KERALA, REP. BY THE SECRETARY TO GOVERNMENT, LOCAL SELF GOVERNMENT DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. THE NELLIKUZHI GRAMA PANCHAYATH, NELLIKUZHI, KOTHAMANGALAM, REPRESENTED BY ITS SECRETARY. ADV. SRI.JOSE JOSEPH ARAYAKUNNEL FOR R2 GOVT. PLEADER SMT. K.R. DEEPA. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 30/01/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PETITIONER'S EXHIBITS: W.P.C.NO. 35537/2008 ------------------------------------------------------------------ EXT.P1 TRUE COPY OF ORDER DT. 13-7-2007 EXT.P2 ORDER DT. 22-8-2007. EXT.P3 ESSENTIALITY CERTIFICATE ISSUED BY R1. EXT.P4 DEMAND NOTICE DT. 12-11-2008. EXT.P5 REPRESENTATION DT. 29-11-2008. [TRUE COPY] P.S TO JUDGE. S. Siri Jagan, J. =-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-= W. P (C) No. 35537 of 2008 =-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-= Dated this, the 30th January, 2009. J U D G M E N T The petitioner is a Trust conducting a Dental College. For the purpose of conducting the Dental College, the petitioner has constructed buildings. The petitioner is now aggrieved by Ext. P4 demand notice directing the petitioner to pay property tax on the buildings in question. According to the petitioner, the buildings being used for educational purposes, which is owned by the petitioner themselves, the said buildings are exempt from property tax by virtue of Section 207 of the Kerala Panchayat Raj Act, 1994. The petitioner therefore seeks the following reliefs: “i) Issue a writ of certiorari, or any other appropriate writ, order or direction, calling for the records leading to Ext. P4 and quash the same; ii) Declare that the petitioner is not liable to pay tax being an educational institution covered under Section 207(1)(c) of the Kerala Panchayat Raj Act, 1994. iii) Issue a writ of mandamus or any other appropriate writ, order or direction, directing the 2nd respondent to dispose of Ext. P4 after hearing the petitioner.” 2. A counter affidavit has been filed by the Panchayat in which it is not disputed that the buildings are used for educational purposes and are owned by the petitioner-Trust themselves. It is further submitted that the Government has issued G.O(MS) No.166/2007/Local Self Government dated 23-6-2007 classifying buildings for the purpose of property tax, which is binding on the Panchayat. Although the said Government Order is stated to have been produced as Ext. R2(a), no Ext. R2(a) is produced along with the counter affidavit. Whatever that be, when the Statute stipulates an exemption, that exemption cannot be taken away by the W.P.C. No. 35537/2008. -: 2 :- Government by any Government Order. Further, when the Act itself prescribes the procedure for assessment of property tax, the Government cannot, by a Government Order, stipulate another mode of assessment. In this case, the Panchayat has not disputed the eligibility of the petitioner for getting exemption from property tax in respect of the property in question as an educational institution. In the above circumstances, the writ petition is allowed and Ext. P4 is quashed. It is declared that the petitioner is entitled to exemption from payment of property tax by virtue of Section 207 of the Kerala Panchayat Raj Act, 1994, as long as the buildings are owned by and used for educational purposes by the petitioner. Sd/- S. Siri Jagan, Judge. Tds/