The Court quashed property tax proceedings demanding payment for 2005-08 against a school. It held that Rule 15(c) amendments making self-financing institutions liable became effective only on 05.03.2008, invalidating demands for earlier years.
The impugned proceedings bearing V.V.No.1186 dated 15.04.2008 demanding property tax are quashed.
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 JUDICATURE AT MADRAS
DATED : 15.04.2019
CORAM
THE HONOURABLE MR.JUSTICE T.RAJA
W.P.No.20449 of 2008 MP No.1 of 2008
Samaritan Educational Trust rep. by its Director .. Petitioner -vs1.The District Collector/ Inspector of Panchayats Vellore District, Vellore. 2.The President/Executive Authority, Yelagiri Panchayat, Yelagiri Post, Vellore District. .. Respondents
Petition filed under Article 226 of the Constitution of India, praying for the issue of a Writ of Certiorari, calling for the records relating to the impugned proceedings of the second respondent in V.V.No.1186 dated 15.04.2008 quash the same.
For Petitioner:: Mr.V.S.Manimekalai For Respondents:: Mr.N.Srinivasan, Additional Government Pleader for R1
No appearance for R2
ORDER
The petitioner has come to this Court challenging the correctness of the impugned proceedings bearing V.V.No.1186 dated 15.04.2008 issued by the second respondent.
2.Learned counsel appearing for the petitioner would submit that the petitioner Trust has been administering a school by name Samaritan Matriculation Higher Secondary School at Mangalam Village, Yelagiri Hills, Vellore District. According to the learned counsel appearing for the petitioner, 15 of the Tamil Nadu Village Panchayats (Assessments and Collection of Taxes)
Rules 1999 was amended and as per the amended Rules, self financed institutions are liable to pay property tax. However, the amendment was notified in and by G.O. Ms. No.38 Rural Development and Panchayat Raj Department dated 05.03.2008. While so, the second respondent has issued the impugned proceedings demanding a sum of Rs.1,03,680/- towards property tax for the years 2005-06, 2006-07 and 2007-08. Learned counsel appearing for the petitioner would submit that when the amendment came into effect only from 05.03.2008 directing all the self financed institutions to pay the property tax, the impugned proceeding calling upon the petitioner to pay the property tax even for the years 2005-06, 2006-07 and 2007-08 is liable to go. In support of her claim, learned counsel appearing for the petitioner also placed a D.O. Letter No.49491/PR.1/2005 dated 25.03.2008.
3.Learned Additional Government Pleader appearing for the first respondent, on receipt of the copy of the letter, stating that the buildings used for educational purposes by Government aided institutions, for conducting self-financing unaided courses shall be subject to levy of house tax and the Rule 15(c) came into effect only from 05.03.2008, submitted that if the petitioner, who is liable to pay the property tax with effect from 05.03.2008, continues in default, the respondent would proceed for non payment only from 05.03.2008.
4.A perusal of the amendment notified in G.O. Ms. No.38 Rural Development and Panchayat Raj Department dated 05.03.2008 would show that the amended rule came into effect only from 05.03.2008 and the above D.O. letter produced by the petitioner shows that Rule 15(c) shall come into effect from 05.03.2008. It is relevant to extract the same as under:
'3.Therefore Rule 15(c) has been amended suitably and the same has been published in the Tamil Nadu Government Gazette Extraordinary dated 05.03.2008. The amended Rule 15(c) is as follows:
15.Exemption of specified clauses of houses from housetax:- The following building shall, if they fall within the meaning of house as defined in the Act, be exempt from the house-tax -
(c)buildings used for educational purposes including hostels and libraries run by the Government or local bodies and institutions aided by the Government and Public buildings used for charitable purpose of sheltering the destitutes or animals”.
Provided that nothing contained in clause (a) 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 clause.
Provided also that the buildings used for educational purposes by Government aided institutions, for conducting self-financing unaided courses shall be subject to levy of house-tax”. This Rule shall take effect from 05.03.2008.'
5.The above proviso clearly shows that the buildings used for educational purposes by government aided institutions shall be exempted from levy of house tax.
6.It is also submitted by the learned counsel appearing for the petitioner that the School has been paying property tax from 2008 onwards till now without any complaint.
7.In the light of the amendment notified in the above G.O., the impugned order is liable to be quashed and the same is quashed. Accordingly, the writ petition stands allowed. No costs. Consequently, connected Miscellaneous Petition is closed.
Sd/Assistant Registrar(V/O) //True Copy// Sub Assistant Registrar To
1.The District Collector/ Inspector of Panchayats Vellore District, Vellore.
2.The President/Executive Authority, Yelagiri Panchayat, Yelagiri Post, Vellore District.
+1cc to the Government Pleader sr.38214
W.P.No.20449 of 2008
spp[co] srg 29/05/2019
2 issues framed by the court
Whether property tax proceedings levying tax for years prior to the amended G.O. date of 05.03.2008 are sustainable when self-financed institutions became liable from that date.
Whether Rule 15(c) amended by G.O. Ms. No.38 dated 05.03.2008 exempts self-financing unaided course buildings from house tax prospectively.
3 provisions across 2 enactments
Samaritan Educational Trust rep. by its Director
The District Collector/ Inspector of Panchayats Vellore District
The President/Executive Authority, Yelagiri Panchayat
T. Raja
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
