TOWN MUNICIPAL COUNCIL MULKY Vs. VIJAYA COLLEGE MULKY

JUDGEMENT

(1.) this appeal by the town municipal council, mulky, is directed against the order of the [earned single judge of this court dated 13-12-1985 in writ petition No. 5381 /1979 dismissing the writ petition preferred by the appellant council. The learned single judge upheld the order passed by the appellate authority as well as the revisional authority under the Karnataka Municipalities Act, 1964 holding that the building owned by the vjjaya college trust, wherein respondent No. 1 vijaya college was being run for the purpose of imparting education, was exempt for payment of property tax being a charitable institution.

(2.) we may briefly notice the facts of the case which are not in dispute. Vijaya college, mulky, is run by the vijaya college trust, a public trust. The building in which education is imparted belongs to the trust and the trust does not charge any rent or other charges from the college for the use and occupation of the building. The college receives grant-in-aid from the government. The college also charges from the students tuition fee at the rates approved by the government as a condition of the grant made to it from time to time. The college is run subject to the conditions imposed by the government from time to time as a condition for giving to it grant-in-aid. The college, as a condition for the grant, must be recognised by the government, must adhere to the curriculam prescribed and must rot charge more than the prescribed fee. It is common knowledge that grant-in-aid is given to institutions which fulfil all the conditions laid down by the government as an aid to the institution for payment of salaries to its employees, maintenance of its buildings and such other things incidental to the running of an educational institution. This college is one such institution.

(3.) for the assessment year 1974-75, a notice was issued under Section 106 of the Karnataka Municipalities Act (hereinafter referred to as the act) proposing to levy building tax in respect of the building in question. The college - respondent No. 1 raised objections. The assessing authority rejected those objections. The college then filed an appeal before the assistant commissioner. The appellate authority also rejected the appeal. Consequently, a demand for property tax was raised under the act and the demand notice was issued on 17.11.1977