IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 30.07.2010 CORAM THE HONOURABLE MR.JUSTICE K.CHANDRU W.P.No.26999 of 2008, W.P.No.10999 of 2003, W.P.Nos.37872 and 41346 of 2005, W.P.No.9753 of 2006, W.P.No.25350 of 2007, W.P.Nos.631,4259, 4647, 4653, 4663, 4664, 5304,5633,5757, 6398, 6399, 8719, 16399, 21054, 21915 of 2009 and W.P.No.2417 of 2010 and Connected Miscellaneous Petitions Kaamadhenu Arts and Science College, Rep. By its Correspondent, Kamadhenu Nagar, D.G.Pudur Post, Komarapalayam Village Panchayat, Sathyamangalam Taluk, Erode District. ... Petitioner in W.P.26999/08 Indo-American College run by its the Abboy Trust rep.by its Trustee Mr.A.Radhakrishnan, Cheyyar Tiruvannamalai District ..Petitioner in WP 10999/2003 Sri Nandha Educational Trustee rep. by its Chairman and Managing Trustee Mr.V.Shanmugham No.281, Chinna Muthu Street,Erode. ..Petitioner in WP 37812/2005 A.E.T,.Marticulation Higher Secondary School rep. by its Secretary P.Kasiannan Paralathampalayam, Kathirampatti (P.O.) Erode. ..Petitioner in WP 41346/2005 Ansaldo College of Education, rep.by its Secretary Angaldo Nagar, Manuthirvanpodi Post, Chetpet (va) Polur Taluk, Thiruvannamalai District. ..Petitioner in WP 9753/2006 Sri Venkateswara Vidhayalaya Higher Secondary School & Matericulation School by its Correspondent K.c.Karuppanan Sri Vaishnavi Devi Nagar,Polavakatpalayam Gobichettipalayam, Erode District. ..Petitioner in WP 25350/2007 https://hcservices.ecourts.gov.in/hcservices/ Sri Arunai Edcuational Trust rep. by its Secretary R.Parimala Chendren No.91, Thiruvoodal Street, Thiruvannamalai Town & District. ..Petitioner in WP 631/2009 Thirumurga Kirupananda Variyar Thovathiru Sundera Swamigal Medical Educational & Charitable Trust, rep. by its Registrar, N.H.47, Sankari Main Road, Ariyariur Salem 636 308 ..Petitioner in WP 4259/2009 Mailam Engineering College, rep.by its Administrative Officer Mailam,Tindivanam Taluk, Villupuram....Petitioner in WP 4647/2009 I.F.ET.College of Engineering rep. by its Chairman, IFET Nagaer, Gangarampalayam East Pondy Road, Valavanur Post Villupuram ..Petitioner in WP 4653/2009 1 VELAMMAL EDUCATIONAL TRUST REP BY ITS CHAIRMAN MR.M.V.MUTHURAMALINGAM 4/951 TVS AVENUE ANNANAGAR WEST EXTN CHENNAI 101. 2.VELAMMAL ENGINEERING COLLEGE REP. BY ITS CHAIRMAN, VELAMMAL NAGAR AMBATTUR-RED HILLS ROAD, SURAPET,CHENNAI -600 066. 3 VELAMMAL MATRICULATION HIGHER SECONDARY SCHOOL REP BY ITS CHAIRMAN VELAMMAL NAGAR AMBATTUR-REDHILLS ROAD SURAPET CHENNAI 66. 4 VELAMMAL COLLEGE OF MANAGEMENT AND COMPUTER STUDIES REP BY ITS CHAIRMAN VELAMMAL NAGAR AMBATTUR-REDHILLS ROAD SURAPET CHENNAI 66. 5 VELAMMAL INSTITUTE OF TECHNOLOGY REP BY ITS CHAIRMAN VELAMMAL GARDENS KOLKATTA HIGH ROAD PANCHETTI CHENNAI 601 204. 6 THE VELAMMAL INTERNATIONAL SCHOOL REP BY ITS CHAIRMAN NEDUVARAMPAKKAM PANCHATTI VILLAGE PONNERI TALUK THIRUVALLUR DT. https://hcservices.ecourts.gov.in/hcservices/ 7 VELAMMAL MATRICULATION HIGHER SECONDARY SCHOOL REP BY ITS CHAIRMAN VELAMMAL GARDEN THIRUPPUVANAM SIVAGANGA DT. 8 VELAMMAL RESIDENTIAL SCHOOL REP BY ITS CHAIRMAN LOS ANGELS LADANENDAL MADURAI - RAMESHWARAM HIGH ROAD SIVAGANGAI. 9 VELAMMAL MATRICULATION HIGHER SECONDARY SCHOOL REP BY ITS CHAIRMAN VIRAGANOOR MADURAI DT. 10.VELAMMAL COLLEGE OF ENGINEERING & TECHOLOGY REP.BY ITS CHAIRMAN,VIRAGANOOR, MADURAI DISTRICT. ..Petitioners in WP 4663/2009 1. VEERAMAHALI MEMORIAL WELFARE TRUST REP BY ITS CHAIRMAN MR.M.V. MUTHURAMALINGAM, 4/951 TVS AVENUE ANNA, NAGAR WEST EXTENTION, CHENNAI 101. 2. VELAMMAL MATRICULATION HIGHER SECONDARY SCHOOL, REP BY ITS CHAIRMAN, NEDUVARAMPAKKAM PANCHATTI VILLAGE, PONNERI TALUK THIRUVALLUR DISTRICT. ...PETITIONER IN W.P.NO.4664/009 SRI VENKATESWARA EDUCATIONAL AND HEALTH TRUST REPRESENTED BY ITS SECRETARY, T.G.BALACHANDRAN NO.1/3A, RIVER VIEW ROAD, KOTTURPURAM, CHENNAI-85. ...PETITIONER IN W.P.NO.5304/09 SRI ARAVINDAR ARTS AND SCIENCE COLLEGE RUN BY SRI ARAVINDAR EDUCATIONAL TRUST AGASAMPATTU VANUR TALUK, VILLUPURAM DISTRICT , REP BY ITS SECRETARY A. RAJASEKARAN. ..PETITIONER IN W.P.NO.5633/09 TAMIL NADU NURSERY PRIMARY MATRICULATION & HIGHER SECONDARY SCHOOL MANAGEMENT ASSN. REP. BY GENERAL SECRETARY D.CHRISTDASS OLD NO.64 NEW NO.122, T.P.KOIL STREET, TRIPLICANE CHENNAI.. ..PETITIONER IN W.P.NO.5757/09. V.S.ISAAC COLLEGE OF EDUCATION REP BY ITS SECRETARY https://hcservices.ecourts.gov.in/hcservices/ MR.V.S. ISSAC JEBAKUMAR AATTUPAKKAM VILLAGE AND POST, ARAKKONAM TALUK, VELLORE DISTRICT. ...PETITIONER IN W.PNO.6398/09 DR.RADHAKRISHNAN TEACHER TRAINING INSTITUTE, REP BY ITS CORRESPONDENT MR.T.MANOHARKUMAR SURANA, 113, SALEM MAIN ROAD, KANIYAMOOR VILLAGE AND POST VILLUPURAM DISTRICT. ..PETITIONER IN W.P.NO.6399/09 G.V.MEMORIAL TRUST REP BY ITS TRUSTEE OWNING AND CONDUCTING SRIVALLI VARADARAJ MATRICULATION SCHOOL, VARADARAJ NAGAR, GULLAPURAM VILLAGE, PERIYAKULAM TALUK, THENI DISTRICT. ...PETITIONER IN W.P.NO.8719/09 BANNARIAMMAN EDUCATIONAL TRUST, REP. BY ITS TRUSTEE S.V.ARUMUGAM. HAVING ITS OFFICE AT 1212, TRICHY ROAD, COIMBATORE-641018. ...PETITIONER IN W.P.NO.16399/09 GANADIPATHY TULSIS JAIN ENGINEERING COLLEGE, REP BY ITS ADMINISTRATOR CHITTOR-CUDDALORE ROAD, KANIYAMBADI VILLAGE AND POST VELLORE TALUK AND DISTRICT. ...PETITIONER IN W.P.NO.21054/09 SRI RAM EDUCATIONAL TRUST, REP.BY ITS SECRETARY K.JAYARAKAN, NO.22,EVENING BAZAAR ROAD, CHENNAI-3. ..PETITONER IN W.P.NO.21915/09 ALPHA ARTS OF SCIENCE COLLEGE REP.BY ITS CHAIR PERSON ALPHA NAGER, THUNDALAM KARAMBAKKAM, CHENNAI. ..PETITIONERS IN W.P.NO.2417 OF 2010. Vs. 1.The State of Tamilnadu, Rep. By its Secretary to the Government, Rural Development Department, Fort St.George, Chennai – 600 009....1st Respondent in W.P.26999/08, 41346/05, 25350/07, 16399/99, 21054/09 https://hcservices.ecourts.gov.in/hcservices/ THE STATE OF TAMIL NADU, REP. BY ITS SECRETARY, RURAL DEVELOPMENT & PANCHAYAT RAJ DEPARTMENT, SECRETARIAT, FORT ST. GEORGE, CHENNAI - 9. ...Ist Respondent in W.P.631, 4647, 4653, 4663 and 4664/2009 State Of Tamil Nadu Rep. By Its Secretary, Rural Development And Panchayat - Raj (PR-1) Department, Fort St.george, Chennai-9. ...Ist Respondent In W.P.4259, 5304, 5633, 5757, 6398, 6399, 8719 & 21915/09 And 2417/2010 STATE OF TAMIL NADU REP.BY SECRETARY TO GOVERNMENT MUNICIPAL ADMINSTRATIVE DEPARTMENT, FORT ST GEORGE, CHENNAI-600 009 . THE COLLECTOR , THIRUVANNAMALAI DISTRICT,TIRUVANNAMALAI. PERUNGALATHUR PANCHAYAT REP.BY PRESIDENT PERUNGALATHUR VILLAGE TIRUVANNAMALAI DISTRICT. .. RESPONDENTS 1 TO 3 IN WP.NO.10999/2003 THE STATE GOVERNMENT OF TAMIL NADU, REP.BY ITS SECRETARY, RURAL DEVELOPMENT OF LOCAL ADMINISTRATION DEPARTMENT, FORT ST.GEORGE, CHENNAI-9. ...1ST RESPONDENT IN W.P.37872/2005 THE GOVERNMENT OF TAMIL NADU, REP. BY ITS SECRETARY, RURAL DEVELOPMENT (C2) DEPARTMENT, FORT ST. GEORGE, CHENNAI-9. ...1ST RESPONDENT IN W.P.9753/2006 The Director, Rural Development Department, Chennai. ...2ND RESPONDENT IN W.P.26999/08, 41346/2005, 25350/2007, 4647, 4653, 4663, 4664, 5757, 6398, 6399, 16399, and 21054/2009, 3rd Respondent in W.P.37872/2005 https://hcservices.ecourts.gov.in/hcservices/ THE PRESIDENT, BLOCK DEVELOPMENT OFFICER, (PANCHAYAT BOARD), PANCHAYAT UNION, ERODE. ...2nd respondent in W.P.37872/2005 THE DISTRICT COLLECTOR, THIRUVANNAMALAI DISTRICT. THE BLOCK DEVELOPMENT OFFICER, (VILLAGE PANCHAYAT), CHETPET PANCHAYAT UNION, CHETPET, THIRUVANNAMALAI DISTRICT. THE PRESIDENT, MARUTHUVAMPADI VILLAGE PANCHAYAT & POST, CHETPET PANCHAYAT UNION, MARUTHUVAMPADI-606 801, CHETPET VIA, POLUR TALUK, ..RESPONDENTS 2 to 4 IN THIRUVANNAMALAI DIST. WP.NO.9753/2006 THE DIRECTOR, RURAL DEVLOPMENT & PANCHAYAT RAJ DEPARTMENT, SECRETARIAT, CHENNAI - 9. THE DISTRICT COLLECTOR, TIRUVANNAMALAI DISTRICT, COLLECTORATE BUILDING, VENGIKKAL, TIRUVANNAMALAI TOWN & DISTRICT. THE PRESIDENT, AYYAMPALAYAM VILLAGE PANCHAYAT OFFICE, AYYAMPALAYAM VILLAGE & POST, RESPONDENTS 2 to 4 IN TIRUVANNAMALAI DISTRICT. ..WP.NO.631/2009 THE DISTRICT COLLECTOR, SALEM. THE DIRECTOR OF RURAL DEVELOPMENT, CHENNAI. THE DISTRICT PANCHAYAT OFFICER, SALEM. THE BLOCK DEVELOPMENT OFFICER, VEERAPANDI PANCHAYAT UNION, SALEM TALUK AND DISTRICT. https://hcservices.ecourts.gov.in/hcservices/ VEERAPANDI PANCHAYAT, REP BY ITS PRESIDENT, SALEM TALUK AND DISTRICT. INAM BAIROJI PANCHAYAT REP BY ITS PRESIDENT, SALEM TALUK AND DISTRICT. PERIYASEERAGAPADI PANCHAYAT, REP BY ITS PRESIDENT, SALEM TALUK AND DISTRICT. PANIYANOOR PANCHAYAT REP BY ITS PRESIDENT, PANIYANOOR, KANCHEEPURAM DISTRICT. ..RESPONDENTS 2 to 9 IN WP.NO.4259/2009 The District Collector Kancheepuram District, Kancheepuram. The Asst. Director (Panchayat) Rural Development Department, Kancheepuram. The President Pennalur Panchayat, Pennalur-602 105, Sriperumpudur Taluk, Kancheepuram District. ...Respondents 2 To 4 In WP.No.5304/09 The District Collector, Villupuram. ...2nd Respondent In W.P.5633/09 3rd Respondent In W.P.4647& 4653/2009 THE DISTRICT COLLECTOR THENI DISTRICT, THENI. THE ASSISTANT DIRECTOR (PANCHAYAT), RURAL DEVELOPMENT DEPT., THENI DISTRICT, THENI. THE PRESIDENT MUDALAKKAMPATTI PANCHAYAT, THENI DT. .. RESPONDENTS 2 to 4 IN W.P.NO.8719/2009 https://hcservices.ecourts.gov.in/hcservices/ THE DISTRICT COLLECTOR THIRUVALLUR DISTRICT, THIRUVALLUR ..2nd Respondent In W.P.21915/09 3rd Respondent In W.P.4663,4664/09 THE PRESIDENT KARAMBAKKAM PANCHAYAT, VILLIVAKKAM PANCHAYAT UNION, THIRUVALLUR DIST. ...2nd RESPONDENT IN W.P.NO.2417/2010 The President, Komarapalaym Village Panchayat, Komarapalayam, Erode District. ...3rd Respondent in W.P.26999/08 THE ASSISTANT DIRECTOR OF PANCHAYAT, ERODE. THE PRESIDENT, PICHANDANPALAYAM VILALGE PANCHAYAT, PICHANDANPALAYAM, ERODE. ..RESPONDENTS 4 & 5 IN WP.NO.37872/2005 THE DISTRICT COLLECTOR, ERODE, ERODE DISTRICT. THE PRESIDENT, KATHIRAMPATTI PANCHAYAT, KATHIRAMPATTI POST, ERODE 638 107. ..RESPONDENTS 3 & 4 IN WP.NO.41346/2005 THE DISTRICT COLLECTOR, ERODE, ERODE DISTRICT. THE PRESIDENT, POLAVAKALIPALAYAM PANCHAYAT, POLAVAKALIPALAYAM, GOBI TALUK, ERODE DISTRICT. ..3rd & 4 RESPONDENT IN WP.NO.25350/2007 The District Collector Sivagangai District. Sivagangai. The District Collector Madurai District, Madurai. https://hcservices.ecourts.gov.in/hcservices/ The President Surapattu Panchayat Union (First Grade), Surapattu, Chennai 66. The President, Panchetti Panchayat, Panchetti, Chennai. The President Neduvarampakkam Panchayat, Neduvarampakkam, Thiruvallur District. The President Thirupuvanam Panchayat, Thirupuvanam, Sivagangai District. The President Ladanendal Panchayat, Madurai-Rameshwaram High Road, Sivagangai. The President Viruganoor Panchayat, Viraganoor, Madurai District. ...Respondents 4 To 11 In WP.No.4663/09 The President Agasampattu Panchayat, Vanur Panchayat Union, Achirampattu, Irumbai Po, Vanur Tk, Arovil Via, Villupuram District. The Executive Officer Agasampattu Panchayat, Vanur Panchayat Union, Achirampattu, Irumbai Po, Vanur Tk, Arovil Via 605 111, Villupuram District. ...Respondents 3 & 4 In WP.5633/09 THE BLOCK DEVELOPMENT OFFICER NEMILI PANCHAYAT UNION, NEMILI, ARAKKONAM TALUK, VELLORE DT. THE PRESIDENT ATTUPAKKAM VILLAGE PANCHAYAT, NEMILI PANCHAYAT UNION, ARAKKONAM TK, VELLORE DT. .. RESPONDENTS 3 & 4 IN W.P.NO.6398/2009 https://hcservices.ecourts.gov.in/hcservices/ THE ASSISTANT DIRECTOR (PANCHAYATS), VILLUPURAM AND DT. THE PRESIDENT KANIYAMOOR VILLAGE PANCHAYAT, KALLAKURICHI TK, VILLUPURAM DT. .. RESPONDENTS 3 & 4 IN W.P.NO.6399/2009 THE PRESIDENT SADUMUGAI PANCHAYAT, SATHIYAMANGALAM TALUK, ERODE DISTRICT. ... 3RD RESPONDENT IN W.P.NO.16399/2009 THE DISTRICT COLLECTOR VELLORE AND DT. THE PRESIDENT KANIYAMBADI PANCHAYAT, KANIYAMBADI UNION, VELLORE. ... RESPONDENTS 3 & 4 IN W.P.NO.21054/2009 THE ASSIST DIRECTOR (PANCHAYAT ) RURAL DEVELOPMENT DEPARTMENT, THIRUVALLUR THE PRESIDENT PERUMALPATTU PANCHAYAT, PERUMAL PATTU VILLAGE, 793, REDID STREET, THIRUVALLUR DIST. ...RESPONDENTS 3 AND 4 IN W.P.NO.21915/2009 The President Mailam Panchayat, Mailam, Villupuram District. ...4th Respondent In WP.No. 4647/09 The President Gangarampalayam Panchayat, Kandamangalam Union, Villupuram District. ...4th Respondent In WP.No. 4653/09 The President Neduvarampakkam Panchayat, Neduvarampakkam, Thiruvallur District. ...Respondents In WP.No.4664/09 https://hcservices.ecourts.gov.in/hcservices/ W.P.No.26999 of 2008 Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of Declaration, declaring that the Amendment to Clause (c) of Rule 15 of Tamil Nadu Panchayats (Assessment and Collection of Taxes) Rules, 1999 through G.O.(Ms) No.38, Rural Development and Panchayat Raj, dated 5.3.2008 and consequential demand notice issued by the 3rd respondent in Letter No.70/2008-2009 dated 23.10.2008 demanding house tax to the tune of Rs.5,50,000/- for the assessment years from 2004-2005 to 2008-2009 in respect of the buildings of the petitioner institution viz.Kamadhenu Arts and Science College are unconstitutional, ex- facie illegal. Writ of certiorarified Mandamus calling for the proceedings of the 3rd respondent made in Assessment Notice No.1 and quash the said demand of the 3rd respondent dated 28.1.2002 and consequently direct the respondents not to levy and collect any property tax in respect of the buildings used for education purpose at Perungalathur Village, Thiruvannamalai District. (in WP No.10999/03). calling for the records relating to the proceedings of the 2nd respondet in Na.Ka.No.2190 of 2005 A2 dated 8.10.2005 and the consequential order of the 5th respondent dated 17.10.2005 and quash the same and consequently forbear the respondents from lveying or collecting any property tax in respect of the buildings and hostel used by the petitioner for educational purposes (in WP NO.37872 OF 2005) Writ of certiorarified Mandamus calling for the records of the 4th respondent in Demand Notice No.851, dated 6.7.2005 and the consequential demand raised by the 4th respondent dated 19.11.2005 and 15.12.2005 quash the same as illegal. (in WP No.41436 of 2005) Writ of certiorari calling for the records in respect of the demand notice dated 10.8.2005 in Assessment No.315 on the file of the 4th respondent levying House tax on the buildings of the petitioner used for educational purpose and quash the same. (in WP No.9753 of 2006) Writ of certiorari Calling for the records relating to the Demand Notice Nos.109010 and 109011 dated 10.7.2007 to the assessment No.1368 and 1369 in respect of the properties in Door No.3/100 and 3/101, Dasampalayam respectively owned by the petitioner institution quash the same as illegal. (in WP No.25350 of 2007) Writ of Declaration declaring the impugned amendment of Rule 15 (c) of the Tamil Nadu Village Panchayat (Assessment and Collection of Taxes) Rules 1999 made under Government order in G.O.Ms.No. 38 Rural Development and Panchayatraj (PR.1) dated 05.03.2008 as https://hcservices.ecourts.gov.in/hcservices/ illegal, discriminatory, arbitrary and unconstitutional and further direct the respondents to grant exemption to the petitioner Institutions from payment of property tax to be buildings used for educational purposes including hostels. (in WP NOS.631/09, 4052/09, 4663/09, 4664/09, 5633/09, 8719/09, 21054/09 & 21915/09) Writ of Declaration declaring that the provisions of Rule - 15 (c) of the Tamilnadu Village Panchayat (Assessment and Collection of Taxes) Rule 1999 as amended by G.O.Ms.No.38 Rural Development and Panchayat Raj Department dated 5.3.2008 published in Tamilnadu Government Gazette issue No.69 dated 5.3.2008 and the consequential demand for House tax is illegal, ultra vires and unconstitutional in so far as the buildings used by the petitioners for educational purposes. (in WP No.4259 of 2009) Writ of Declaration, declaring the impugned amendment to Rule 15 (c) of the Tamilnadu Village Panchayat (Assessment and Collection of Taxes) Rules 1999 made under impugned Government Order in G.O.Ms. No.38 Rural Development and Panchayatraj (PR.1) dated 5.3.2008 and consequential demand notice dated 5.4.2008 raised by the 4th respondent for the buildings owned by the petitioner college for the period between 2005-2006 and 2007-2008 and quash the same as illegal, discriminatory, arbitrary and unconstitutional and further direct the respondents to grant exemption to the petitioner institution from payment of property tax to the buildings used for educational purpose including hostels. (in WP No.4647 of 2009) Writ of Declaration declaring that the provisions of Rule 15 (c) of the Tamil Nadu Village Panchayat (Assessment and Collection of Taxes) Rule 1999 as amended by G.O.Ms.No.38 Rural Development and Panchayat Raj Department dated 5.3.2008 published in Tamil Nadu Government Gazette issue No.38 dt. 5.3.2008 and the consequential demand for House Tax is illegal, ultravires and unconstitutional in so far as the buildings used by the petitioners for educational purposes. (in WP No.5304 of 2009) Writ of Declaration declaring the provision of Rule 15(c) of the Tamil Nadu Village Panchayats (Assessment and Collection of Taxes) Rules 1999 as amended by G.O. Ms. 38 Rural Development and Panchayat Raj (PR-1) Department dated 5.3.2008 published in the Tamil Nadu Govt. Gazette Issue No.69 dated 5.3.2008 as void, unlawful, ultra, virus and unconstitutional in respect of the buildings used for educational purposes by the member educational institutions of the Petitioner Association is concerned. (in WP No.5757 of 2009) Writ Of Declaration : Declaring The Provision Of Rule 15 (c) Of The Tamilnadu Village Panchayats (Assessment And Collection Of Taxes) Rules, 1999 As Amended By G.O. Ms.38, Rural Development And Panchayat Raj (PR-1) Department, Dt 5.3.2008, Published In The Tamilnadu Govt. Gazette Issue No.69, Dt 5.3.2008 And Consequential Demand Letter Issued By The 4th Respondent In His Proceedings Dt https://hcservices.ecourts.gov.in/hcservices/ 4.11.2008 In Village Panchayat Resolution No.3 And In Assessment No.336 As Void, Unlawful, Ultra Virus And Unconstitutional In Respect Of The Buildings Used For Educational Purposes By The Petitioner Is Concerned In WP. No.6398/09. Writ Of Declaration : Declaring The Provision Of Rule 15 (c) Of The Tamilnadu Village Panchayats (Assessment And Collection Of Taxes) Rules, 1999 As Amended By G.O. Ms.38, Rural Development And Panchayat Raj (PR-1) Department, Dt 5.3.2008, Published In The Tamilnadu Govt. Gazette Issue No.69, Dt 5.3.2008 And Consequential Demand Notice Issued By The 4th Respondent In His Proceedings Dt 14.3.2009 In Assessment Nos. 588, 649 And 650 As Void, Unlawful, Ultra Virus And Unconstitutional In Respect Of The Buildings Used For Educational Purposes By The Petitioner In Concerned In WP.6399 Of 2009. Writ Of Declaration : Declaring That The Amendment Of Clause (c) Of Rule 15 Of Tamil Nadu Panchayats (Assessment And Collection Of Taxes) Rules, 1999 Through G.O.(Ms) No.38, Rural Development And Panchayat Raj, Dated 5.3.2008 And Consequential Undated Demand Notice Issued By The 3rd Respondent Signed On 28.7.2009 Demanding House Tax To The Tune Of Rs.81,78,280/- For The Assessment Years From 2001-2002 To 2008-2009 In Respect Of The Buildings Of The Petitioner Educational Institutions Viz. Bannariamman Institute Of Technology And Bannari Amman Vidya Nikatan Are Unconstitutional, Ex- facie Illegal. In WP.NO.16399/2009 Writ Of Declaration : Declaring G.O.(Ms) No.38 Rural Development And Panchayat Rai (P.R.1) Department Dated 5.3.2008 Introducing Amendment To Rule 15 Of The Tamilnadu Village Panchayats (Assessment And Collection Of Taxes) Rules 1999 And The Consequential Attachement Notice Of The 2nd Respondent Dated 11.12.2009 Along With The Notice Of Demand Of House Tax In No.27814 As Illegal, Unconstitutional And Arbitrary And Discriminative In Wp.2417 OF 2010. For Petitioners : W.P.No.10999 of 2003 :Mr.R.Karlmax W.P.No.37872 of 2005 :Ms.B.Saraswathi W.P.No.41346 of 2005 W.P.No.4647, 4653, 4663, 4664 and 21054 of 2009 :Mr.V.P.Sengottuvel W.P.No.9753 of 2006 :Fr.A.Xavier Arulraj W.P.No.25350 of 2007 :Mr.N.Manokaran W.P.No.26999 of 2008 & W.P.No.16399 of 2009 :Mr.Gandhi, Senior Advocate For Mr.R.G.Narendhiran W.P.No.631 of 2009 :Mr.R.Karthikeyan https://hcservices.ecourts.gov.in/hcservices/ W.P.No.4259 of 2009 :Mr.N.R.Chandran,Senior Advocate For Mr.M.Kempraj W.P.No.5304 and 21915 of 2009 :Mr.N.R.Chandran, Senior Advocate For Mr.R.Natarajan W.P.No.5633 of 2009 : Mr.N.R.Chandran, Senior Advocate For Mr.B.K.Singh W.P.No.5757, 6398 and 6399 of 2009 W.P.No.2417 of 2010 :Mr.R.Suresh Kumar W.P.No.8719 of 2009 : Mr.Rajnish Pathiyil For Respondents : Mr.P.S.Raman, Advocate General Assisted by Mr.M.Dhandapani, Spl.G.P. For the State Mr.V.Subbarayan for R3 in W.P.No.10999/2003 Mr.R.Chandrasekaran for R2 in W.P.No.37872/2005 Mr.D.Nagasaila for R4 in W.P.No.41346/2005 Mr.G.Sankaran for RR3 & 4 in W.P.No.9753/2006 Ms.S.Anitha for R4 in W.P.No.25350/2007 Mr.B.K.Girish Neelakantan for R3 in W.P.26999/2008 Mr.D.Sreenivasan for R4 in W.P.No.631/2009 Mr.S.Gopinathan for RR5 to 8 in W.P.No.4259/2000 Mrs.D.Geetha for R4 in W.P.No.4647 and 4653/2009 Mr.I.Paranthaman for RR7 & 8 in W.P.No.4663 Mr.R.Thirugnanam for RR3 & 4 in W.P.No.6399/2009 Mr.S.Sundaresan for R4 in W.P.No.8719/2009 Mr.M.Dhandapani for R3 in W.P.No.16399/2009 Mr.V.Viswanathan for R4 in W.P.No.21054/2009 Mr.J.Thilagaraj for R4 in W.P.No.21915/2009 Mr.S.Sivashanmugam for R2 in W.P.No.2417/2010 CO M M O N O R D E R 1. PREAMBLE :- 1.1. These writ petitions came to be posted before this Court on being specially ordered by the Hon’ble Chief Justice . Since the issues involved in all these writ petitions are common, they were heard on 26.07.2010 and 28.07.2010 and a common order is passed. 1.2. The short question that arises for consideration is whether the educational institutions run on self-financing including the educational institutions which have started self-financing courses and having their campuses including their buildings located in areas coming under respective panchayats are liable for house tax in terms of Section 172 of the Tamil Nadu Panchayat Act, 1994 (for https://hcservices.ecourts.gov.in/hcservices/ short Act) and Rule 15 of Tamil Nadu Panchayats (Assessment and Collection of Taxes) Rules, 1999 (for short Rules). It is unnecessary to set out the facts in each case since only legal contentions were made in the affidavits filed in support of the writ petitions. It is suffice to deal with the arguments advanced by the learned counsel which are almost the same in all the writ petitions. Before proceeding to deal with the contentions advanced, it is necessary to recapitulate the history of such taxation. 2. HISTORY OF THE LEVY OF PROPERTY TAX BY PANCHAYATS IN TAMILNADU:- 2.1. Article 243-H of the Constitution enables a State Legislature to authorise the Panchayat to levy, collect and appropriate taxes. 2.2 The Tamil Nadu Village Panchayats Act 1994 was enacted pursuant to the Part IX of the Constitution. Section 172 of the Tamil Nadu Panchayats Act 1994 enables the Panchayat to impose house tax. Pursuant to the said power under section 242, the Government has framed rules known as Tamil Nadu Village Panchayats (Assessment and Collection of Taxes) Rules 1999 through G.O.Ms.No.255 Rural Development Department dated 13.12.1999. 2.3. Rule 15 deals with exemption from the liability of tax for specified classes of house which reads as follows: "15.Exemption of specified classes of houses from house-tax- The following buildings shall, if they fall within the meaning of house as defined in the Act, be exempt from the house-tax. (a) & (b) ... omitted ... (c) buildings used for educational purposes including hostels and libraries which are open to the public and public buildings used for charitable purpose of sheltering the destitutes or animals; (d) to (k) ...omitted... Provided that nothing contained in clauses (a) and (c) shall be deemed to exempt from house-tax, if any building for which rent is payable by the person or persons using the same for the purposes referred to in the said clauses: Provided further that educational institution (not commercial in nature) exempted from levy of house tax, immediately before the commencement of the Act shall continue to be exempted under the said Act. Explanation – The exemption granted under this rule shall not extend to residential quarters attached to schools or colleges not being the hostels or residential quarters attached to hospitals, dispensaries and libraries." (Emphasis added) 2.4. Under the earlier Tamil Nadu Panchayats Act 1958, Section 120 provided for collection of house tax in the panchayat areas. The https://hcservices.ecourts.gov.in/hcservices/ relevant rule granting exemption under the old Act 1958 regarding educational institutions were as follows: House-tax 1. Exemption of specified classes of houses from house tax- (a) & (b) ... omitted ... (c) buildings used for educational purposes including hostels and for libraries which are open to the public, and public buildings used for the charitable purpose of sheltering the destitute or animals; Provided that nothing contained in clauses (a), (c) and (e) shall be deemed to exempt from house-tax any building for which rent is payable by the person or persons using the same for the purposes referred to in the said clauses: Provided further that buildings used for educational purposes including hostel is owned and run for such purposes or not, shall be exempt from tax. Explanation (1) – For the purpose of the proviso to this rule the rent or other charges paid by patients in the charitable hospitals for special awards or beds shall not be deemed to be rent. Explanation (2) – The exemption granted under this rule shall not extend to residential quarters attached to Schools and Colleges not being hostels or to residential quarters attached to hospitals, dispensaries and libraries." (Emphasis added) 2.5. As can be seen under the old 1958 Panchayat Rules, the mention about buildings being "in commercial nature" was not found. At that time of framing of the Rule, the concept of self-financing Colleges and schools was relatively unknown. 2.6. In respect of Municipalities under the Tamil Nadu District Municipalities Act, 1920, Section 86(c) provided for exemption from Property Tax. The original provision reads as follows:- "86. General exemption:- The following buildings and lands shall be exempt from the property tax- (a) & (b) ... omitted ... (c) buildings used for educational purpose including hostels attached thereto and places used for the charitable purpose of sheltering the destitute or animals and orphanages, homes and schools for the deaf and dumb, asylum for the aged and fallen women and such similar institutions run purely on philanthropic lines as are approved by the council." 2.7. Subsequently by the Tamil Nadu Act XVII/1990 all https://hcservices.ecourts.gov.in/hcservices/ educational institutions were made liable to pay property tax if they were situated in a municipal area. 2.8. However after the Tamil Nadu Municipal Laws (Amendment) Act 1994 (T.N.Act 42 of 1994) total exemption was granted to buildings used for educational purpose including hostels from payment of property tax with effect from 1.4.1994. The said amendment will apply only to buildings situate within the municipal limits. Therefore, it will not apply to the buildings situate in the Panchayat areas. The said amendment to the Tamil Nadu District Municipalities Act, 1920 and the Statement of Objects and Reasons are extracted below: "3. Amendment of Section 83- In sub-section (1) of section 83 of the Tamil Nadu district Municipalities Act, 1920, (Tamil Nadu Act V of 1920) in clause (c), for the words "public buildings and places used for the charitable purpose", the words "buildings used for educational purpose including hostels attached thereto, public buildings and places used for the charitable purpose" shall be substituted." "STATEMENT OF OBJECTS AND REASONS Many representations were received from the management of private schools and colleges in corporation and municipal areas, to exempt them from the payment of property tax. Their main contentions are that the institutions are being run on non- commercial basis and that they are maintained only through the fees collected from the students. The Government after careful consideration of the said representations, have decided to exempt the educational institutions from the payment of property tax. It has also been decided that such exemption should be with effect from 1st day of April 1994, in respect of Municipal Corporations. To give effect to the above decisions, it is proposed to amend the Act relating to the Municipal Corporations and Municipalities suitably." (Emphasis added) 2.9. A careful reading of the Rule 15(c) of the Panchayat Taxation Rules clearly shows that a building used for educational purpose including hostels and laboratories if they are open to the