APPUKUTTAN Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioner constructed buildings numbered as XII/832, XII/833-843 in Sy.No. 353/2-2 of Komalapuram Village. The building was constructed in the year 1974. Initially the building was used as a factory which was also registered as an SSI unit. The pleadings also show that the actual date of occupation of the building was on 20.2.1974. In view of the provisions of S. 3(1)(b) of the Kerala Building Tax Act exempting buildings which are used principally as factories from the levy of tax thereunder, the building was not assessed to building tax. However, the factory functioned only upto 1989 and after renovating the building, the petitioner started a bar attached hotel in the building w.e.f. 3.11.1989 and it is still functioning. On the change of the user of the building as above, respondents initiated assessment proceedings under the Kerala Building Tax Act and issued an assessment order levying tax of Rs. 82,800/-. The appeal filed by the petitioner was dismissed by the Revenue Divisional Officer, Chengannoor.

(2.) Petitioner there after filed a revision before the District Collector and contended that the building is entitled to exemption from the levy of tax under the Kerala Building Tax Act. In view of the provisions contained in S. 3(2) of the Act, District Collector referred the claim of the petitioner to the Government for a decision. Accordingly, Government afforded the petitioner an opportunity of hearing and passed Ext.P12 order dated 2.3.2009 rejecting the petitioner's claim for exemption and directing the Tahsildar to assess the building under S. 3B of the Act. It is challenging the proceedings culminating in Ext.P12, this Writ Petition is filed.

(3.) Section 3 of the Kerala Building Tax Act provides for exemptions and S. 3(1)(b) provides that nothing in the Act shall apply to buildings used principally as factories or workshops. It was giving the benefit of this provision that the building of the petitioner was exempted from the assessment under the Kerala Building Tax Act. However, the building continued as a factory only till 3.11.1989 when the petitioner started a bar attached hotel in the building and that too after renovating the same. Therefore, with the change of user of the building in question, the building ceased to belong to any one of the eligible categories provided in S. 3(1)(b) and as a result, the petitioner lost the benefit of exemption. If that be so, for the period from 3.11.1989, the building in question is liable to be assessed in the manner as provided in the Kerala Building Tax Act applying the relevant entry in the schedule thereto.