Disposed

The Manager / Prior, v. the State of Kerala

Kerala HC3 Apr 2024WP(C)/4576/2024

Case brief

AI extract

What is this about?

A school manager challenged Corporation notices demanding property tax arrears predating the 2023 amendment withdrawing tax exemptions for recognized educational institutions. Relying on an earlier judgment holding such institutions liable only from 01.04.2023, the court quashed the demand and remitted recognition verification to the Corporation with show-cause procedure.

What did the court decide?

Property tax demand quashed; remitted to Corporation to verify recognition via show cause notice; no liability if recognition before 01.04.2023 is proved.

The Manager / Prior, Vs the State of Kerala — Municipal and Town Planning | Kerala HC (2024)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH
WEDNESDAY, THE 3RD DAY OF APRIL 2024 / 14TH CHAITHRA, 1946
WP(C) NO. 4576 OF 2024

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PETITIONER:

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THE MANAGER / PRIOR,
CHRIST NAGAR CENTRAL SCHOOL, A CMI EDUCATIONAL
INSTITUTION, KOWDIAR P.O., THIRUVANANTHAPURAM, PIN -
695503
BY ADVS.
R.S.KALKURA
M.S.KALESH
HARISH GOPINATH
H.KIRAN
P.I.NAJUMAL HUSSAIN
NEENU VIMALKUMAR
SILPA S.

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RESPONDENTS:

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1 THE STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY TO GOVERNMENT, SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001

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2 DEPARTMENT OF EDUCATION, REPRESENTED BY THE PRINCIPAL SECRETARY , SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001

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3 CORPORATION OF THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY, THIRUVANANTHAPURAM, PIN - 695033

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4 CENTRAL BOARD OF SECONDARY EDUCATION, REPRESENTED BY ITS SECRETARY, SHIKSHA KENDRA, 2, COMMUNITY CENTRE, PREET VIHAR VIKAS MARG, NEW DELHI, PIN - 110092 BY ADVS. SUMAN CHAKRAVARTHY NIRMAL.S

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OTHER PRESENT:

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SMT. K.R. DEEPA -SPL.GP ( LSGD)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 03.04.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:

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WP(C) NO. 4576 OF 2024

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JUDGMENT

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The petitioner, who is the manager / prior of Christ Nagar Central School run by Carmelites of Mary Immaculate (CMI) educational institution has approached this court impugning the Exts.P2 and P3 notices for arrears of property tax at Rs. 61,12,848/with applicable penalty from the second half of 2010-2011 and second half of 2023-2024. The second notice dated 17.01.2024, demanding tax arrears of Rs.23,54,329/-,plus applicable penalty from 2010-2011 second half period to 2023-2024 second half period, in respect of two buildings of the petitioner institution.

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The petitioner has challenged the levy and demand of property tax on their two buildings prior to 01.04.2023, when amendments to Section 235(ba) of the Kerala Municipality Act, 1994 was brought in force, withdrawing the concession / exemption granted earlier to recognize the educational institution from payment of property tax under the said provisions.

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The issue concerned in this writ petition is covered by the judgment of this court in W.P (C) No. 22014 of 2023, Kerala Recognized School Management Association and anothers v. State of Kerala and others , wherein it has been held that a recognized institution will liable to pay property tax only with effect from 01.04.2023, and the demand of the property tax in respect of the recognized educational institutions prior to 01.04.2023 cannot

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WP(C) NO. 4576 OF 2024

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be made and the same would be ultra-virus the then existing provision, prior to 01.04.2023.

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Paragraphs 5 and 6 of the said judgment which are relevant are extracted hereunder:-

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“5. In view of the amendment brought in to Sections 207(1)(ba) and 235(ba) of the Panchayat Raj Act and the Municipality Act, respectively, as mentioned above, the petitioners would be liable to pay property tax with effect from 1.4.2023 on their buildings/properties, unless the said provisions are set aside or declared unconstitutional.

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Whether the institutions of the petitioners are recognised or not is a question of fact, which can be verified by the Municipality/Panchayat concerned. However, if the petitioners' institutions are recognized, they are not liable to pay property tax before 1.4.2023 with respect to such buildings/properties.”

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4.Whether the petitioner’s institution was recognized prior to 01.04.2023 is the question of facts and evidence. In view thereof, the impugned levy of demand of property tax is quashed and the matter has been remitted back to the Corporation, Thiruvananthapuram. The Corporation shall issue a show cause notice to the petitioner to provide an opportunity to submit relevant documents / proof of the petitioner’s institution recognizing before 01.04.2023.

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5.It is made clear that if the petitioner is in possession of the necessary evidence / documents when the petitioner’s educational institution was recognized for the period for which the tax has been demanded before 01.04.2023, the petitioner would not liable to pay the tax prior to 01.04.2023. If the petitioner fails to produce the

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WP(C) NO. 4576 OF 2024

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relevant documents / evidence of their recognition prior to 01.04.2023, the Corporation will be free to issue a fresh demand notice prior to 01.04.2023.

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with the aforesaid direction and observations, the writ petition is disposed of as above.

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Sd/-

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DINESH KUMAR SINGH JUDGE

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WP(C) NO. 4576 OF 2024

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APPENDIX OF WP(C) 4576/2024

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PETITIONER EXHIBITS

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EXHIBIT P1TRUE COPY OF THE LETTER OF AUTHORITY
DATED 04.05.2023 ISSUED BY THE
PROVINCIAL CMI TO THE PETITIONER

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EXHIBIT P2TRUE COPY OF THE NOTICE DATED
17.01.2024 IN RESPECT OF BUILDING
BEARING NO. 25/3882 ISSUED BY THE 3RD
RESPONDENT TO THE PETITIONER WITH
ENGLISH TRANSLATION

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EXHIBIT P3TRUE COPY OF THE NOTICE DATED
17.01.2024 IN RESPECT OF BUILDING
BEARING NO. 25/3883 ISSUED BY THE 3RD
RESPONDENT TO THE PETITIONER WITH
ENGLISH TRANSLATION

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RESPONDENT ANNEXURES
ANNEXURE R3(A)A TRUE COPY OF THE CIRCULAR
NO.49590/RC2/2011/LSGD DATED 12.04.2012
ANNEXURE R3(C)A TRUE COPY OF THE GAZETTE NOTIFICATION
OF ACT 18 OF 2023 DATED 28.03.2023
ANNEXURE R3(B)A TRUE COPY OF THE COMMUNICATION
NO.2234/RC2/2014/LSGD DATED 16.07.2014
OF THE PRINCIPAL SECRETARY LSGD (RC)
DEPARTMENTTOTHESECRETARY,
THIRUVANANTHAPURAM CORPORATION WITH
ENGLISH TRANSLATION

The Manager / Prior, v. the State of Kerala

Case brief

What is this about?

What did the court decide?

The Manager / Prior, v. the State of Kerala

Case brief

What is this about?

What did the court decide?

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