THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.4082 of 2011 Dated:28.02.2011 Between: Vysya Students Welfare Association. …Petitioner And State of A.P., represented by its Principal Secretary, Municipal Administration, Secretariat, Hyderabad, And others. …Respondents THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.4082 of 2011 ORDER: (per Hon’ble Sri Justice V.V.S.Rao) Vysya Students Welfare Association, a registered body, is before this Court aggrieved by the endorsement, being G.C.No.2207/2010/A6/AC-III, dated 01.01.2011, of the fourth respondent whereby and whereunder the petitioner was informed that exemption from payment of property tax is not admissible for the petitioner institution. The Chairman of the petitioner was further informed that the petitioner’s hostel for Post Graduate students is collecting fees and is, therefore, not entitled for tax exemption. The petitioner’s case is that it was established in October, 1937 for the benefit of students of the community to provide lodging and boarding facilities, the amount is equally distributed among students, and a nominal amount is collected from residents of the hostel. The petitioner had made a representation in 1968 for exemption. Considering the same, the Visakhapatnam Municipal Council had issued proceedings dated 23.12.1969 exempting the hostel and other buildings bearing assessment No.18348 of Ward No.17 (now assessment No.100001/90740 in Ward No.20). But the respondent – Corporation, issued a demand notice dated 06.07.2009 for payment of Rs.1,67,000/- being the half yearly tax. The petitioner made a representation on 14.07.2009 for continuation of exemption already granted. Without considering the same, the impugned endorsement was issued. The counsel for the petitioner brought to our notice the decisions of this Court in Municipal Corporation Hyderabad v Vyaya Hostel, Hyderabad[1] and Dayanand Bhavan Samithi v Commissioner, Municipal Corporation of Hyderabad[2] in support of the submission that, even if an Educational Institution is not being run, hostel running for the welfare of the students is itself entitled for exemption from payment of property tax. The Standing Counsel for the Visakhapatnam Municipal Corporation does not dispute the legal position. He points out that, under Section 202(1)(b) of the Hyderabad Municipal Corporation Act, 1955, unless and until the petitioner institution satisfies the conditions therein, namely, being the institution for charitable purpose, an exemption cannot be granted. He, however, does not dispute that in this direction no enquiry was conducted. Admittedly, the petitioner institution has been availing exemption granted under the Andhra Pradesh Municipalities Act, 1965, at least from 1969. It is only in July 2009, the present Municipal Corporation sought to tax the petitioner’s buildings. Even when the petitioner gave a representation claiming exemption, the same was not considered. Therefore, we deem it appropriate to order enquiry by the jurisdictional Officer of the Visakhapatnam Municipal Corporation into the question. We also given liberty to the petitioner to place necessary material in support of their claim that their objects are for charitable purposes. This exercise may be completed within a period of two months from the date of receipt of a copy of this order. Until then, we hope that no coercive action will be taken against the petitioner. The writ petition stands disposed of accordingly. There shall be no order as to costs. _______________ (V.V.S.RAO, J) _____________________________ (RAMESH RANGANATHAN, J) 28.02.2011 vs [1] 1978 (1) ALT 52 (NRC) [2] 1997 (1) An.W.R 436 (DB)