ADMINISTRATOR JOSEGIRI HOSPITAL Vs. GOVER OF KERAL

JUDGEMENT

(1.) The question for consideration is, whether the building owned by the petitioner is eligible for exemption from payment of tax under the provisions of Kerala Building Tax Act and the Rules framed thereunder.

(2.) Petitioner is running a Nursing School in the ground and first floor of a building. The second and third floors of the building are used as hostel. The Tahsildar, Thalassery Taluk, Thalassery had issued Notice No.C-4/23220/03 dated 26.11.2003, calling upon the petitioner to file details regarding the construction of new building for the purpose of fixing the Building Tax/Property Tax under the provisions of the Kerala Building Tax Act and the Rules framed thereunder. After receipt of the notice, the petitioner had filed a detailed reply dated 17.12.2003 and in that it was stated, apart from others, that the Nursing School building has four floors, the ground floor accommodates the Principal's and Vice Principal's Offices, visitors room, library, dining hall, kitchen etc; first floor is used as class rooms, staff room, laboratory hall etc; second and third floors are used for the stay of Nursing students. Hence the whole building is used fully for educational purpose as Nursing School. In conclusion, it was claimed that the building is exempted under Section 3(1)(b) of the Act, and therefore, requested the Tahsildar who had initiated proceedings to assess the Building Tax under the Act, to refer the question of exemption to the State Government as envisaged under Section 3(2) of the Act. On such reference, the State Government has passed Ext.P6 order dated 28.7.2006 and in that it has stated, that, since the petitioner is using second and third floors to accommodate nursing school students by collecting Rs.12,000/- from each student as annual fee and mess fee as per dividing system, it is not entitled for exemption under the Act to the second and third floor of the building. However, exemption was granted to the ground and first floor which are exclusively used for educational purpose.

(3.) The petitioner, being aggrieved by Ext.P6 order passed by the State Government, has, called in question the correctness or otherwise of the said order by filing this petition before this Court. The prayers in the writ petition are:-