CHERUPUSHPAM HOSPITAL TRUST Vs. PALA MUNICIPALITY

JUDGEMENT

(1.) Is a hospital run by a Charitable Trust entitled to get exemption from payment of property tax leviable under Section 235 of the Kerala Municipality Act, 1994 The learned Single Judge answered the question in the negative holding that the appellant would not come under any one of the exempted categories enumerated in the above statutory provision. This Writ Appeal is directed against the above judgment.

(2.) The appellant is a registered Charitable Trust. It is running Cherupushpam Charitable Hospital at Palai in Kottayam District. The appellant was admittedly exempted from payment of tax by virtue of Section 101 of the Kerala Municipality Act, 1960, the predecessor of Act 1994. It is not necessary to go into the details of the assessment proceedings which were initiated by the Municipality after enactment of Act 1994 in view of the primary issue to be decided in this appeal. Suffice it to say that the appellant was found liable to pay property tax at the rate of Rs. 21960/- per annum. This order was challenged in the Writ Petition.

(3.) The contentions of the learned counsel for the appellant ace two fold: (i) the appellant is liable to be exempted from payment of property tax by virtue of Section 235 of the Kerala Municipality Act, 1994; and (ii) the tax levied by the Municipality is highly exorbitant and unreasonable.