HON’BLE SRI JUSTICE N.R.L. NAGESWARA RAO C.M.S.A.No.301 OF 2005 Dated 30TH June, 2011 Between: Balabhanu Vidyalayam Trust, rep. by its Secretary, Sri B. Ramakrishna Raju, Siripuram Junction, Visakhapatnam .. APPELLANT A N D Visakhapatnam Municipal Corporation, rep. by its Commissioner, Tenneti Viswanadham Bhavan Ramnagar, Visakhapatnam .. RESPONDENT This Court made the following: JUDGMENT: This C.M.S.A. is filed against the judgment dated 26-08-2003 in T.A.No.89 of 2001 on the file of the Principal Senior Civil Judge, Visakhapatnam, dismissing the claim of the appellant questioning the legality of the assessment of tax which was confirmed by the respondent in Rc.No.6 of 1999. The property was assed to tax to a tune of Rs.23,124/- for half a year and the appellant herein has pleaded that a charitable educational institution is being run in the said premises and therefore, under Section 202 (1) (b) (b) of the Greater Hyderabad Municipal Corporation Act, 1955 (for short, ‘the Act’) the appellant is not liable to pay the tax. The respondent and also the lower Court did not accept the above contention and hence, the present appeal. 2. The point that arises for consideration is: Whether the judgment of the lower Court suffers from any legal infirmity ? 3. POINT:- Section 202 (1) (b) (b) of the Act reads as follows: “Educational institutions upto 10th class, the buildings, of which are donated by charitable institutions or philanthropists, or which are depending on the grant-in-aid by the Government for the maintenance and such other educational institutions which are not running purely on commercial lines, but serving that cause of primary education which the Government may consider from time to time” 4. It is also not in dispute that the building belongs to a charitable institution and a trust. It is also not in dispute that a school was being run in the said premises. The lower Court did not extend the benefit of exemption under Section 202 (1) (b) (b) of the Act as there is no proof that the school was recognized by the Government and further there is no other exemption granted by the Government and consequently the exemption claimed by the appellant cannot be allowed. 5. Learned counsel for the appellant contends that even if the educational institution is not recognized still the building belonging to a charitable institution is exempt from tax if Section 202 of the Act is properly understood and the lower Court has not considered that aspect so far as running of the educational institutions is concerned. Now it is not in dispute that permission of the Government has to be taken and even as per the G.O.Ms.No.468 dated 31-07-1993 the Government has extended exemption of the tax only to recognize educational institutions. Therefore, merely because a charitable trust is running a school it does not by itself entitled for grant of exemption unless the educational institution is recognized. 6. On question of fact the lower Court found that there is no proof of the educational institution being recognized. So far other aspect as to the exemption on the ground that the building belongs to a charitable institution and therefore, it has to be exempted is concerned, evidently it has to be obtained from the Government and there is no such exemption is granted. 7. However, the present appeal is not filed before the Court on the ground that it is entitled to the benefit of exemption otherwise though on the ground of running an educational institution. Therefore, in view of the above facts there is no illegality in the order of the lower Court calling for interference in the Second Appeal. 8. Accordingly the Second Appeal is dismissed. There shall be no order as to costs. 9. However, this does not prevent the appellant applying to the Government or to the Municipal Corporation for exemption. However, it is open to the appellant by proving it is a recognized educational institution i.e., being run in the scheduled premises. ___________________________________ JUSTICE N.R.L. NAGESWARA RAO June 30, 2011 Pn HON’BLE SRI JUSTICE N.R.L. NAGESWARA RAO C.M.S.A.No.301 OF 2005 June 30, 2011 Pn