Appeal against rejection of building tax exemption claim for a working women's hostel funded partly by Central Government grant. Court set aside impugned order directing reconsideration of claim and staying recovery of tax.
Record rejected; order set aside; directed 1st respondent to reconsider claim; recovery of tax stayed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE ANTONY DOMINIC & THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU
WEDNESDAY, THE 5TH DAY OF JULY 2017/14TH ASHADHA, 1939 WA.No. 718 of 2017 () IN WP(C).36106/2016 ------------------------------------------AGAINST THE JUDGMENT IN WP(C) 36106/2016 DATED 10-11-2016 ---------------
APPELLANT(S)/PETITIONER IN WPC :- -----------------------------------
VIMALA JYOTHI SEVA SANGHAM KAIRALI NAGAR, KALPETTA, WAYANAD DISTRICT, KERALA - 673 121, REPRESENTED BY ITS PRESIDENT, SISTER TREESA VADAKKATH, AGED 59 YEARS, D/O.MATHAI, VADAKATH HOUSE, SULTHAN BATHERY, WAYANAD - 673 592.
BY ADV. SRI.NIRMAL V NAIR
RESPONDENT(S)/RESPONDENT IN WP(C) :-
1. STATE OF KERALA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, REVENUE (SPECIAL CELL) DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695 001.
2. THE DISTRICT COLLECTOR CIVIL STATION, WAYANAD - 673 121.
3. THE REVENUE DIVISIONAL OFFICER MANANTHAVADY, WAYANAD - 670 645.
4. THE TAHSILDAR VYTHIRI, WAYANAD DISTRICT - 673 576.
BY SR.GOVERNMENT PLEADER SRI.MUHAMED RAFIQ
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 05-07-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
ANTONY DOMINIC, J. & DAMA SESHADRI NAIDU, J.
W.A. No.718 of 2017 --------------------------------------------Dated this the 5th day of July 2017
J U D G M E N T
Antony Dominic, J.
Vimala Jyothi Seva Sangham, with its office at Kairali Nagar at Kalpetta in Wayanad District is the appellant. The Sangham has set up a working women's hostel. The hostel building was constructed utilising the grant of the Central Government and the pleadings show that the grant was more than 25% of the total cost of construction of the building. The building was assessed to building tax under the Kerala Building Tax Act, 1975 (for short, 'the Act'). There upon the appellant claimed the benefit of exemption as provided under Sec.3A(2) of the Act. That was rejected by Ext.P11 order of the Government on the ground that the building is being used for other purposes after accepting rent from the inmates. It was aggrieved by this order, the writ petition was filed. By the impugned judgment, the learned Single Judge dismissed
W.A. No.718 of 2017
-: 2 :-
the writ petition. It is in these circumstances, the appellant has come up in appeal.
and the learned Government Pleader appearing for the respondents.
(2) The Government may, if they consider it necessary so to do, by notification in the Gazette, make exemption from the payment of building tax either wholly or partly in respect of any building or buildings constructed utilising the grant of the Central Government or the State Government, where such grant is not less than twenty-five per cent of the total cost of the construction of the building and such building is intended for such purposes as may be prescribed subject to the condition that the building tax if any, already paid shall not be refunded or otherwise adjusted.”
A reading of the aforesaid provision would show that it empowers the Government to grant exemption from payment of building tax either wholly or partly, in respect of any building or buildings constructed utilising the grant of the Central Government or the State Government, where such grant is not less than 25% of the total cost of the
W.A. No.718 of 2017
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construction. The further requirement of the Section is that the building should be intended for such purposes as may be prescribed subject to the condition that the building tax if any, already paid shall not be refunded or otherwise adjusted.
W.A. No.718 of 2017
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exemption to Kerala Fine Arts Society, S.R.O.No.350/2007 exempting the building of Kera Bhavan, S.R.O.No.584/2007 exempting the building of Nirmala Working Women's Hostel, Thodupuzha and S.R.O.No.1049/2009 granting exemption to the building of Kerala State Warehousing Corporation.
W.A. No.718 of 2017
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It is also ordered that until the matter is re-
considered as ordered above, coercive action for recovery of
tax due under the Act shall remain stayed.
This writ appeal is allowed accordingly.
Sd/ANTONY DOMINIC JUDGE
Sd/DAMA SESHADRI NAIDU JUDGE
//TRUE COPY//
P.A. TO JUDGE
Jvt/5.7.2017
3 issues framed by the court
Whether the Government's refusal to grant building tax exemption was actuarial or arbitrary given similar exemptions to other working women's hostels.
Whether the appellant is entitled to reconsideration of its claim for exemption under Section 3A(2) of the Act.
Whether coercive action for recovery of tax should be stayed pending reconsideration of the claim.
1 provisions across 1 enactments
VIMALA JYOTHI SEVA SANGHAM KAIRALI NAGAR
STATE OF KERALA REPRESENTED BY ITS SECRETARY TO GOVERNMENT
ANTONY DOMINIC
DAMA SESHADRI NAIDU
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
