IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN MONDAY, THE 18TH JULY 2011 / 27TH ASHADHA 1933 WP(C).No. 17543 of 2011(P) --------------------------------------- PETITIONER(S): ----------------------- DARUL ULOOM ISLAMIC CULTURAL CENTRE P.O. KAPPUR-679 552, PALAKKAD DISTRICT, REPRESENTED BY ITS ADMINISTRATIVE OFFICER, MOHAMMEDKUTTY. BY SRI.N.N.SUGUNAPALAN, SENIOR ADVOCATE, ADV. SRI.S.SUJIN, SMT.NITA.N.S. RESPONDENT(S): -------------------------- 1. THE TAHSILDAR, OTTAPPALAM-678 101. 2. THE SECRETARY TO GOVERNMENT REVENUE DEPARTMENT, GOVERNMENT OF KERALA, THIRUVANANTHAPURAM-695 001. 3. STATE OF KERALA, REPRESENTED BY CHIEF SECRETARY, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695 001. R1 TO R3 BY SR. GOVT. PLEADER MR.JAMES MATHEW KADAVAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/07/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs WP(C).No. 17543 of 2011(P) APPENDIX PETITIONER'S EXHIBITS: EXT.P1: COPY OF THE CERTIFICATE OBTAINED BY THE PETITIONER UNDER THE CHARITABLE SOCIETIES REGISTRATION ACT. EXT.P2: COPY OF THE GO(RT) NO.3779/06/RD DATED 29/08/2006. EXT.P3: COPY OF THE PROCEEDINGS OF THE 1ST RESPONDENT DATED 08/02/2008 VIDE NO.SR/165/02/GA (D.DIS.1712/08/GA). EXT.P4: COPY OF THE ORDER NO.K.DIS.959/08/F DATED 31/12/2009 ISSUED BY THE RDO, OTTAPPALAM. EXT.P5: COPY OF THE PROCEEDINGS NO.G/1-457/09 DATED 11/11/2010 ISSUED BY THE 1ST RESPONDENT. EXT.P6: COPY OF THE JUDGMENT DATED 21/12/2010 IN W.A. NO. 2495/2009 OF THIS HONOURABLE COURT. EXT.P7: COPY OF THE OBJECTION PREFERRED BY THE PETITIONER BEFORE THE 1ST RESPONDENT ON 23/12/2010. EXT.P8: COPY OF THE PROCEEDINGS OF THE 1ST RESPONDENT VIDE NO.G1- 457/09 DATED 10/06/2011. RESPONDENT'S EXHIBITS:. NIL. //TRUE COPY// P.A. TO JUDGE rs S. SIRI JAGAN, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 17543 of 2011 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 18th day of July, 2011 J U D G M E N T The petitioner is a Trust running educational institutions. In respect of certain buildings owned by the petitioner which according to the petitioner are solely used for educational purposes the petitioner claimed exemption from payment of building tax. The Government considered the claim for exemption under Section 3 (1) (b) of the Kerala Building Tax Act and passed Ext.P2 order whereby the exemption was granted to all buildings except the portion used as hostel for students and staff quarters. Based on the same, the Tahsilar has initiated proceedings for recovery of building tax in respect of the buildings used as hostel for students and staff quarters. The petitioner is challenging the same on the ground that in view of Ext.P6 judgment of the Full Bench of this Court, the petitioner is entitled to exemption in respect of the building used as W.P.(C)No. 17543 of 2011 -2- hostel for students and staff quarters. The learned Government Pleader points out that although as per Ext.P6 judgment the portion used as hostel for students is eligible for exemption, staff quarters is not, since Ext.P6 judgment itself expressly states otherwise. 2. I have heard both sides. 3. Of course, as per Ext.P6 judgment the hostel for students is clearly exempted from payment of building tax. However in paragraph 9 of the judgment the Full Bench has held as follows: “9. We are therefore of the view that buildings owned by educational institutions for providing hostel accommodation to students qualify for building tax exemption under clause (b) of Section 3 (1) of the Act. However all buildings accommodating students do not qualify for building tax exemption because there are so many lodge buildings constructed by various people around educational institutions which do not have hostel facility, to rent out to students in such educational institutions. Letting out of buildings by private agencies is a commercial activity whether tenants are students or not. In other words, only hostel buildings owned by educational institutions for accommodating it's own students in such hostels will qualify for exemption under clause (b) of Section 3 (1) the Act.” In the above circumstances, the building used as staff quarters is clearly not covered by the judgment and therefore not eligible for exemption under the Kerala W.P.(C)No. 17543 of 2011 -3- Building Tax Act and therefore this writ petition is disposed of with the following directions: The 1st respondent shall exempt the building used by the petitioner as hostel for students from payment of tax. However the 1st respondent can proceed with the assessment of the staff quarters under the Kerala Building Tax Act. Sd/- S. SIRI JAGAN JUDGE //True copy// P.A. TO JUDGE shg/