RAJEEVAN Vs. TAHSILDAR

JUDGEMENT

(1.) The petitioner is aggrieved with the exemption order passed at Exhibit P11; more so because of the denial of exemption to the major portion of the building.

(2.) Exhibit P11 indicates that the petitioner has a three storeyed building, of which the Ground Floor comprises of a workshop, spare parts room, office, parking area and washing area. The First Floor has a showroom and has facility for after sale service. The Second Floor is fully dedicated for after sale service. The Government in Exhibit P11 noticed that the area having an extent of 2092 square meter of the Ground Floor has already been granted exemption by the Government itself as early as in July, 201 However, the balance portion with respect to the Ground Floor was declined exemption which, the petitioner submits, has to be included in the exemption for reason of the spare parts room, office, parking area and washing area being ancillary activities of the workshop. This Court is inclined to accept the above said contention.

(3.) However, with respect to the First and Second Floors, the Government had declined exemption for reason of the activity being principally of sale of vehicle and workshop area is being used for after sale service. A learned Single Judge of this Court in K.V.R. Auto Cars (P) Ltd. Vs. State of Kerala [2010 (3) KLT 26], in a similar circumstance, held that the workshop running in such premises would be included in a "factory" as defined under Sec. 2(m) of the Factories Act, 1948 [for brevity "Factories Act"]. The petitioner also has a 'factory' licence for the workshop which is carried on in the Ground Floor. This Court in 2010 (3) KLT 26, however, has not considered the issue as to whether workshop can be considered to be the principal activity carried on when there is existing in the very same building a showroom for sale of vehicles and an after sale service centre. The exemption as granted by the Kerala Building Tax Act, 1975 [for brevity "Building Tax Act"] is for buildings used principally for religious, charitable or educational purposes or as factories or workshops. Hence, the determinative factor would be the principal use of the building and when there is a showroom for display and sale of the vehicles and facility for after sales, the principal use would be of sale and display of vehicles, which do not come under the exemption as has been permitted by sub-clause (b) of sub-section (1) of Sec. 3 of the Building Tax Act.