(1.) The respondent/Panchayat in the Writ Petition is the appellant. The appeal is directed against the judgment of the learned Single Judge declaring that the building in question owned by the respondent in which the State Bank of Travancore has its branch is not liable to be taxed by the appellant/Panchayat by virtue of the exemption contained in S.72(1)(f) S.72(1)(f): Exemption:- (1)The following buildings and lands shall be exempt from the tax, cess or duty leviable under S.66 --
(2.) At the hearing stage learned counsel for the appellant/Panchayat contended, inter alia, that the building in question is let out to the bank, that the bank is paying rent to the respondent and in that view the building cannot come within the category of "charitable hospital and dispensary" referred to in S.72(1)(f) of the Act. Per contra it was contended for the respondent that the Hospital run by them in a charitable institution as contemplated under S.72(1)(f) of the Act and the building bearing No. III/389A (No. III/459) constructed by the respondent is entitled to exemption from payment of building tax. It was also contended that the building is part and parcel of the hospital complex and that there is no profit motive in constructing the building. To buttress the aforesaid contention, it was submitted that the banking facilities of the hospital, payment of salary to its employees and the banking requirements of the patients are carried out through the said bank and the banking facilities are essentially required for the smooth and proper functioning of the hospital, taking the building in question out of the category of a commercial building not liable to be assessed for payment of building tax.
(3.) Having considered the rival contentions we are of the opinion that the appellant has made out a case for interference with the judgment of the learned Single Judge. The principles governing interpretation of taxing provisions are by now well settled by a catena of decisions of the Hon'ble Supreme Court and of this Court. In A.V. Fernandes v. The State of Kerala ( AIR 1957 SC 657 ) a Constitution Bench of the Supreme Court ruled as follows: