EXCELSIOR ENGLISH MEDIUM HIGHER SECONDARY SCHOOL Vs. SECRETARY, KOTTAYAM MUNICIPALITY, KOTTAYAM AND ORS.

JUDGEMENT

(1.) This writ petition is filed by an English Medium CBSE School within the limits of the Kottayam Municipality. The issues raised in the writ petition are two fold. First aspect is, Ext. P1 demand notice issued by the Municipality dated 19.05.2009 imposing service tax of Rs.2,36,406/- cannot be sustained under law, since it is imposed from the financial year 2001-2002 onwards and as per Section 539 of the Kerala Municipality Act, 1994 ('Act, 1994' for short), any amount due to the Municipality can be recovered only if it is within a period of three years. Therefore, according to the petitioner, through a notice issued on 19.05.2009, the service tax sought to be realised from the year 2001-2002 cannot be recovered. Which thus means, the recovery exceeding a period of three years is prohibited under law and therefore, interference is required, is the contention.

(2.) The second aspect is in respect of the property tax imposed as per Ext.P5 order dated 16.11.2010 directing the petitioner to pay an amount of Rs.33,740/- annually. According to the petitioner, as per Section 235 of the Act, 1994, as it originally stood, there was exemption from the property tax to all educational institutions. However, consequent to an amendment made in the year 2009, the exemption in regard to the schools was limited to the Government and the Government Aided Schools. But, the tax was imposed without providing sufficient opportunity of hearing and participation to the petitioner. Anyhow, to Ext. P5 notice, petitioner has submitted Ext. P6 reply, however apprehending coercive action before any orders are passed finally on the same, the petitioner has approached this Court by filing this writ petition.

(3.) This writ petition was pending before this Court from the year 2011, and the petitioner has secured an order of status quo from the date of admission of the writ petition.