SACRED HEART MEDICAL TRUST Vs. STATE OF KERALA

JUDGEMENT

(1.) The present writ petition has been filed impugning Exhibit P-7 demand notice for the building tax on the petitioner's building under the provisions of Kerala Building Tax Act, 1975.

(2.) Learned Counsel for the petitioner submits that before the assessing authority, the petitioner took a specific plea that the petitioner's institution being a Charitable Medical Institution is exempted from payment of building tax in view of Sec. 3(2) of the Kerala Building Tax Act, 1975. It is further submitted that the petitioner has been issued a 12A certificate under of the Income Tax Act, 1961 as the petitioner being a Charitable Institution.

(3.) Once the petitioner has taken this plea before the assessing authority, the assessing authority is duty bound to refer the matter to the State Government to decide the question of exemption of the building of the petitioner from payment of building tax. Only after the said question is decided by the State Government, then the assessing authority could have proceed with the matter. In the present case, the Assessing Authority did not refer the matter to the State Government and decided to levy the building tax in Exhibit P-7 assessment order/demand notice.