HINDUSTAN AERONAUTICS LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The Petitioner's grievance is over the second Respondent's rejection of its request for the exemption from the payment of property tax. The order, dated. 13.07.2007 (Annexure-E) issued by the Respondent No. 2 in this regard is the subject matter of this writ petition.

(2.) Sri T.R. Subbanna, the learned Senior Counsel appearing for Smt Vidyulatha for the Petitioner submits that the Petitioner Company is cent percent Central Government Undertaking. There are no private shareholders in the Company. All the shares are held by the Central Government in the name of the President of India. All the Directors of the Board of the Petitioner Company are appointed by the President of India. The entire dividend being earned by the Petitioner Company goes to the Government of India. The property in question, upon which the property tax is sought to levied by the Respondent No. 2, belongs to the Central Government only. The learned Senior Counsel further submits that the general public do not even have access to the Petitioner Company. The nature of the Petitioner's activities being sensitive, utmost vigil is maintained in the areas of its operation.

(3.) He submits that the Petitioner was paying a sum of about Rs. 23,00,000/- (Rs. Twenty three lakhs only) towards the property tax to the second Respondent's predecessor, namely, Krishnarajapuram City Municipal Council under the self-assessment scheme. He submits that under Article 285 of the Constitution of India, the Petitioner is exempted from the payment of any tax. The said Article is extracted hereinbelow: