IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR THURSDAY, THE 3RD APRIL 2008 / 14TH CHAITHRA 1930 WP(C).No. 32886 of 2007(M) -------------------------- PETITIONER: ------------ 1. CONTRUST CHARITABLE TRUST, MINI BYE-PASS ROAD, PUTHIYARA, KOZHIKODE, PIN - 673 004, REPRESENTED BY ITS CHAIRMAN & MANAGING TRUSTEE, KKS NAMBIAR, S/O.KOMAN NAMBIAR, AGED 81 YEARS. 2. COMTRUST EYE HOSPITAL, MINI BYE-PASS ROAD, PUTHIYARA, KOZHIKODE, PIN - 673 004, REPRESENTED BY ITS CHAIRMAN AND MANAGING TRUSTEE, KKS NAMBIAR. BY ADV. SRI.BABU JOSEPH KURUVATHAZHA SRI.K.I.SAGEER RESPONDENTS: ------------- 1. STATE OF KERALA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT, DEPARTMENT OF REVENUE, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. DISTRICT COLLECTOR, KOZHIKODE. 3. TAHSILDAR, KOZHIKODE. BY GOVERNMENT PLEADER SRI. E.P. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 03/04/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 APPENDIX PETITIONERS' EXHIBITS: EXT.P1 TRUE PHOTOCOPY OF INDENTURE OF TRUST DATED 19.7.1978 OF THE FIRST PETITIONER. EXT.P2 TRUE COPY OF THE BOOKLET (ENGLISH) DETAILING THE FUNCTIONS OF THE 2ND PETITIONER. EXT.P3 TRUE COPY OF THE BOOKLET (MALAYALAM) DETAILING THE FUNCTIONS OF THE 2ND PETITIONER. EXT.P4 TRUE COPY OF THE CERTIFICATE BEARING NO. 46-024-AQ-6064 DATED 28.12.1999 ISSUED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE NO.2, DIVISION NO. II OF KOZHIKODE. EXT.P5 TRUE COPY OF THE APPLICATION DATED 18.2.2005 SUBMITTED BY THE FIRST PETITIONER BEFORE THE 1ST RESPONDENT. EXT.P6 TRUE COPY OF G.O. (RT.) NO. 3107/06/RD DATED 7.6.2006 ISSUED BY THE FIRST RESPONDENT. EXT.P7 TRUE COPY OF THE REVIEW PETITION DATED 23.10.2006 FILED BY THE FIRST PETITIONER BEFORE THE FIRST RESPONDENT. EXT.P8 TRUE COPY OF THE REMINDER DATED 2.7.2007 SUBMITTED BY THE FIRST PETITIONER BEFORE THE FIRST RESPONDENT. RESPONDENTS' EXHIBITS: NIL TRUE COPY P.S. TO JUDGE. C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- W.P.C. NO. 32886 OF 2007 -------------------------------------------- Dated this the 3rd day of April, 2008 JUDGMENT Petitioner is challenging denial of building tax exemption in respect of a hospital building on the ground that hospital is run by charitable trust and surplus income is used for charitable purposes. This issue is settled by various decisions of this Court including the decision reported in Medical Trust's case, (2004) 2 K.L.T. 139, wherein this Court held that in order to get exemption for hospital building from building tax, medical relief granted by the hospital should be absolutely free of cost, and mere application of surplus income for charitable purposes does not entitle hospital building for building tax exemption. Since the condition under Section 3 is rendering medical service free of charges and since petitioner has no case that free medical relief is rendered to all patients, petitioner is ineligible for building tax exemption. Since petitioner is a hospital and is said to be engaged in charity as well, petitioner is granted 10 equal monthly instalments to clear the arrears, along with applicable rate of interest, first of which 2 will be paid on or before 30.4.2008 and the balance on or before last day of nine succeeding months. Recovery proceedings will be kept in abeyance for payments as above and if petitioner commits default in payment of any instalment, the instalment facility granted herein will stand automatically vacated and respondents till be free to proceed for recovery of the entire arrears due. However, if payments are made voluntarily, then no collection charges will be recovered from the petitioner. W.P. is disposed of as above. (C.N. RAMACHANDRAN NAIR) Judge kk 3