CHAIRMAN AND MANAGING TRUSTEE Vs. REVENUE DIVISIONAL OFFICER

JUDGEMENT

(1.) Numerous reliefs have been sought in this writ petition which includes a challenge against an assessment order under the Kerala Building Tax Act, 1975 (for short the Act). Challenge is also raised against a communication intimating the rejection of appeal on account of failure to cure the defects pointed out, apart from seeking a declaration that the building constructed as part of a Medical College for teaching purposes, is exempted from the building tax. Yet another relief of a declaration that the proviso to sec. 11(1) of the Act is unconstitutional is also sought for.

(2.) On the basis of a building permit issued in the year 2010, petitioner constructed a non-residential building having an area of 168.38 m2. Petitioner was assessed to tax under the Act for the said construction in the year 2011 as per Ext.P1 and the entire amount of tax was paid. The said building is being used as a Specialty Hospital. Subsequently, petitioner constructed another separate building to be used as a teaching facility attached to the hospital for converting the hospital into a Medical College. On completion of construction, a notice under Sec. 7(3) and Sec. 9(2) of the Act was issued on 31/1/2020, calling upon the petitioner to submit a return and to produce records for carrying out an assessment under the Act. In response to the aforementioned notices, a reply was submitted by the petitioner on 10/2/2020 stating that the building constructed by the petitioner is for a teaching hospital recognised by the Central and State Governments and therefore, exempted from payment of tax under the Act. Another detailed objection was also submitted on 28/2/2020 claiming the benefit of exemption under the Act. However, in the return filed by the petitioner, the details of the buildings were shown only as new constructions. Thereafter, by order dtd. 7/7/2020, the assessing authority assessed the buildings to tax and imposed an amount of Rs.65,90,600.00 as building tax.

(3.) Challenging the imposition of tax on the building constructed by the petitioner, an appeal was preferred, claiming inter alia, that the order of assessment is not a speaking order, the statutory exemption available to the petitioner was not considered, and also that a building principally used for educational purposes is outside the purview of the tax liability.