M.N.BHANDARI,J. - (1.) By this writ petition, a challenge is made to the Notification dated 31.08.2015 along with the demand notice and the bill towards Urban Development Tax.
(2.) The petitioner is a Public Charitable Trust. The bill/demand has been raised towards Urban Development Tax for the land and building. The challenge to it has been made in reference to Section 107 of the Rajasthan Municipalities Act, 1959 (for short "the Act of 1959) and the Notification dated 29.08.2007. By the Notification dated 29.08.2007 an exemption was given to land and building of the charitable trust even if it is used for commercial purposes. The petitioner is registered under the Rajasthan Public Trust Act, 1959. It sought exemption pursuant to the Notification dated 29.08.2007 apart from Section 107 of the Act of 1959, being charitable trust. It has been denied precisely in reference to subsequent Notification dated 31.08.2015 where the earlier Notification dated 29.08.2007 was clarified. In between the Rajasthan Municipalities Act, 2009 (for short "the Act of 2009") came in place of the Act of 1959. The Notification dated 29.08.2007 and 31.08.2015 are quoted hereunder for ready reference: Notification dated 29.08.2007:- HINDI MATTER
(3.) We find that the earlier Notification dated 29.08.2007 was issued under the Act of 1959 and was applicable to the petitioner- Trust but it is till coming into effect of the Rajasthan Municipalities Act, 2009 (for short "the Act of 2009"). It is for the reason that Section 107 existing earlier under the Act of 1959 was substantially changed under the Act of 2009. The exemption provided under Section 107 of the Act of 1959 has been provided in the same manner under Section 107 of the Act of 2009. For ready reference, Section 107 of the Rajasthan Municipalities Act of 1959 and Section 107 of the Act of 2009 are reproduced hereunder to make comparison between the two:- "107 of the Rajasthan Municipalities Act of 1959. Exemptions from taxation.-(1) None of the taxes specified in sections 104, 105 and 106 shall be leviable by a board in respect of any property belonging to or vested in it. (2) None of the taxes specified in clauses (1) and (2) of section 104 and in clauses (i), (iii), (iv) and (v) of sub-section (1) of section 105 shall be leviable in respect of any lands, buildings, goods, vehicles, conveyances, boats or animals belonging to or vested in the Central Government or the State Government: Provided that, so long as any such tax continues to be levied by the board on like properties of other persons, nothing in this sub-section shall prevent the board from levying that tax to which, immediately before the 26th day of January, 1950, any lands, buildings, goods, vehicles, conveyances, boats or animals of the Central Government were liable or treated as liable: Provided further that any land, building, goods, vehicle, conveyance, boat or animal belonging to or vested in the State Government shall be so exempt from payment of any such tax, if the same is used or intended to be used solely for public purposes and for purposes of profit. (3) 1[XXX] (4) The tax specified in clauses (1) of section 104 shall be leviable in respect of lands and buildings used solely as places of public worship or for religious or charitable purposes: Provided that such lands or buildings shall be exempt from payment of the said tax, if any, trade or business is carried on therein or if in respect thereof rent or other income is derived, whether such rent or other income is or is applied exclusively towards such places of public worship or towards such religious or charitable purposes. Explanation I.-'Charitable purpose' includes relief of the poor, education and medical relief. Explanation II.- When any portion of any land or building is exempt from payment of tax under this sub-section such portion shall be deemed to be a separate property for the purposes of the said tax. (5) The State Government may, if in its opinion reasonable grounds exist for so doing, grant and define, by notification in the Official Gazette, such exemptions in exceptional cases from payment of a tax leviable under section 104 or imposed under section 105 or under section 106 as it may consider necessary." "107 of the Rajasthan Municipalities Act of 2009. Exemption from taxation.- (1) None of the taxes specified in section 102 and 103 shall be leviable by a Municipality in respect of any property belonging to or vested in it. (2) None of the taxes specified in clause (a) of sub-section (1) of section 102 and clauses (i) and (ii) of sub-section (1) of section 103 shall be leviable in respect of any lands, buildings, vehicles, conveyance and boats belonging to or vested in the Central Government or the State Government: Provided that, so long as any such tax continues to be levied by the Municipality on like properties of other persons, nothing in this sub-section shall prevent the Municipality from levying that tax to which, immediately before the 26th day of January, 1950, any lands, buildings, vehicles, conveyances and boats of the Central Government were liable or treated as liable: Provided further that any land, building, vehicle, conveyance or boat belonging to or vested in the State Government shall be so exempted from payment of any such tax, if the same is used or intended to be used solely for public purposes and for purposes of profit. (3) The tax specified in clause (a) of subsection (1) of section 102 shall be leviable in respect of lands and buildings used solely as places of public worship and duly recognized as such by the Municipality. (4) The State Government may, if in its opinion reasonable ground exists for doing so, grand and define by general or specific order published in the Official Gazette such exemptions from payment of a tax leviable under this Act as it may consider necessary.";