HINDUSTAN ORGANIC CHEMICALS LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioner is a company registered under the provisions of the Companies Act, 1956 and it is fully owned by the Government of India. It constructed residential flats in 24 multi-storeyed flats and one building for telephone exchange. In the return filed by the company under the Kerala Buildings Tax Act and Ext. P2 objections, company contended that it is a company fully owned by the Government of India and, therefore, buildings are owned by Government and it is exempted under S.3(1) of the Act and before assessment this question should be referred to the Government under S.3(2). Second contention raised was that each flat in the residential complex is built to provide accommodation to the employees and, therefore, each flat is separate. Since most of the flats are below 75 square metres they are exempt and in any event assessments Should be made on each flats separately.

(2.) First, I may take the contention that each flat should be considered as separate buildings. 'Building' is defined under S.2(e) of the Act which is as follows:

(3.) Next contention is that petitioner is a company owned by the Government of India and therefore, exempt from building tax under S.3(1)(a). S.3(1)(a) is quoted below: