IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN FRIDAY, THE 22ND JULY 2011 / 31ST ASHADHA 1933 WP(C).No. 7560 of 2007(Y) -------------------------------- PETITIONER(S): ------------------- VICAR, ST.GEORGE'S FORANE CHURCH, KAIPUZHA, KOTTAYAM TALUK, REPRESENTED BY PRESENT VICAR, FR.THOMAS THARAYIL. BY ADV. SRI.S.VIJAYAN NAYAR RESPONDENT(S): --------------------- 1. GOVERNMENT OF KERALA, REPRESENTED BY ADDITIONAL SECRETARY TO GOVERNMENT, REVENUE (SPECIAL CELL) DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. TAHSILDAR, KOTTAYAM TALUK, KOTTAYAM. BY GOVT.PLEADER SRI.V.K.SHAMSUDHEEN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs W.P.(C). NO. 7560/2007 APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE LETTER DATED 14/07/2005 OF THE PETITIONER. P2: COPY OF ASSESSMENT ORDER DATED 13/07/2005 OF THE 2ND RESPONDENT. P3: COPY OF CERTIFICATE DATED 31/07/2005 ISSUED FROM THE BISHOP'S HOUSE. P4: COPY OF DETAILED ARGUMENT NOTES DATED 27/11/2006. P5: COPY OF GOVERNMENT ORDER G.O.(Rt)NO.576/07/RD DATED 09/02/2007 RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A. TO JUDGE. svs S. SIRI JAGAN, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No.7560 of 2007 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 22nd day of July, 2011 J U D G M E N T The petitioner is the vicar of a church. The church has constructed a parish hall. The parish hall was sought to be assessed for building tax under the Kerala Building Tax Act, 1975. The petitioner claimed exemption under Section 3 of the Act. Therefore the matter was referred to the Government for deciding the question of exemption, under Section 3 (2) of the Act. The Government after hearing the petitioner, passed Ext.P5 order holding that the parish hall is not principally used for religious, charitable or educational purposes and therefore no exemption from payment of building tax can be granted for that building. Ext.P5 order is under challenge in this writ petition. The contention of the petitioner is that, as is revealed from Ext.P1 petition filed by the petitioner before the Tahsildar, Kottayam, the parish hall is being used for post funeral W.P.(C)No.7560 of 2007 -2- functions, post marriage functions and other religious functions such as retreat, Bible convention, Sunday School functions etc. and it is also stated that in addition to the same seminars and conferences are also conducted in the building. They would submit that only nominal rent is being collected for allowing the parish hall to family members of the parish and the public to use the building. Therefore according to them, the parish hall is being used principally for religious and charitable purposes and therefore it is exempt from building tax. 2. A counter affidavit has been filed by the 1st respondent supporting Ext.P5. 3. I have considered the rival contentions in detail. 4. The relevant portion of Ext.P5 reads thus: 3) Government have examined the matter in detail. Personal hearing was granted to the party on 28.11.2006. The petitioner and the Deputy Tahsildar, Kottayam attended the hearing. The petitioner submitted the following facts during the hearing. “They have constructed a hall in the name of “SEHION CULTURAL CENTRE” comprising a plinth area of 1412.70M2 in the church Premises out of funds collected from the members of parish. The building is Principally used for conducting Religious Conventions, W.P.(C)No.7560 of 2007 -3- Social Seminars, Educational festivals etc for which they are levying only nominal charges to meet the maintenance expenses.” 4) On perusal of connected records and other documents, it is seen that the parish hall is not used for any religious or charitable purpose. The hall is rented out to public for marriages, baptism etc. An extension counter of South Indian Bank is also functioning in this building and it is rented out for Rs.500/- per month. Granting exemption to the said building will result in huge loss to Government. The Parish hall will not come under the purview of section 3 (1) (b) of Kerala Building Tax Act, 1975. 5. The question as to whether a particular building is used for religious or charitable purposes is a question of fact. After considering the materials produced by the petitioner, the Government came to the conclusion that the parish hall is not being used for religious or charitable purposes. The petitioner has no allegation that the Government is actuated by malafides in arriving at that conclusion. Without any allegation of malafides, I do not think that this court is justified in interfering with the said finding of fact. 6. Even otherwise, I am of opinion that Ext.P1 reply given by the petitioner to the Tahsildar itself supports Ext.P5 order. W.P.(C)No.7560 of 2007 -4- 7. Ext.P1 reads thus: “Sehion Cultural Centre, constructed by the church is used for post funeral functions, post marriage functions and other religious functions such as Retreat, Bible convention, Sunday school functions, etc. In addition to this, seminars and conferences are also conducted in the building. If the building is used for religious functions connecting with Retreat, Bible conventions, Sunday school functions, etc it is free of any renter charges. In the case of post funeral functions and post marriage functions, there is no collection relating to the rent or hire charges if it is taken by family members of the Parish, but only a nominal fees collection is made towards maintenance cost on account of electricity, water charges, cleaning and usage of furniture. For outsiders, if used for such purposes only nominal rent is received in addition to the above maintenance cost. For other functions only half of the maintenance cost and rent is collected. Since the concessional rent/fee is received the functioning of the Centre is always met with deficit.” The statements therein shows that the parish hall is not being used for any religious or charitable purposes. In fact the question as to whether the parish hall used for conducting marriages etc. is entitled to exemption from payment of building tax has been decided by a Division Bench of this Court in St. George Orthodox Church v. State of Kerala [2009 (4) KLT 702] in which the Division Bench has held that a parish hall is not entitled to exemption from payment of building tax. W.P.(C)No.7560 of 2007 -5- In view of the above circumstances, there is no merit in the challenge against Ext.P5. Accordingly the writ petition is dismissed. Sd/- S. SIRI JAGAN JUDGE //True copy// P.A. TO JUDGE shg/