FR JOSEPH Vs. GOVERNMENT OF KERALA

JUDGEMENT

(1.) Two contentions are raised in challenge of the order Ext. P2 of government which confirmed the levy of tax under S.68 of the Kerala Panchayats Act 32 of 1960 (the Act) on the residential quarters of doctors working in one Mary Immaculate Hospital, of which the petitioner is the Director. I shall quote sub-sections (1) and (2) of S.68 for purposes of reference:

(2.) Petitioner states that the Mary Immaculate Hospital is a charitable institution established by the Roman Catholic Church, a religious denomination entitled to the fundamental right under Art.26(a) of the Constitution. The petitioner's first contention is that the imposition of building tax under S.68 on residential quarters attached to charitable hospitals established and maintained by a religious denomination violates its fundamental right guaranteed under Art.26(a) of the Constitution to establish and maintain institutions for religious and charitable purposes. It must be noted here that the hospital building as such is exempted from payment of the tax and the dispute is only in relation to the residential quarters.

(3.) .I find absolutely no substance in this contention. It was nowhere contended and it was nowhere established that the Hospital in question was one established by a religious denomination. Even assuming it is so, I am unable to hold that the imposition of the tax in question violates the fundamental right under Art.26(a). The tax on buildings levied under S.68 is one of a general nature, imposed on every building, other than those exempted under S.72. It is one levied to raise the much needed resources for Panchayats to enable them to meet their administrative expenditure and to perform the duties and obligations enjoined by the Act. The primary purpose behind the provisions in S.68, as in the case of every other measure of taxation, is the raising of revenue for Panchayats for their purposes. It is not a provision intended to fetter the establishment or maintenance of any institution by any person, whether a religious denomination or otherwise. It is a tax for general purposes. The very purpose of a tax generally is to raise revenues for government although occasionally it partakes also of regulation. As long ago as in 1819, Marshall C.J. had observed: