Karnataka High Court
Sri. Srinivasa Educational And vs The State Of Karnataka on 25 July, 2024
Author: R Devdas
Bench: R Devdas
-1-
NC: 2024:KHC:29292
WP No. 10400 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 25TH DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE R DEVDAS
WRIT PETITION NO. 10400 OF 2024 (LB-TAX)
BETWEEN:
SRI. SRINIVASA EDUCATIONAL AND
CHARITABLE TRUST,
HAVING ITS REGISTERED OFFICE AT
NO.619/G, 36TH CROSS,
2ND BLOCK, RAJAJINAGAR,
BENGALURU-560 010.
REPRSENTED BY ITS
CHAIRMAN MR.G.DAYANAND.
...PETITIONER
(BY SRI. D.R. RAVISHANKAR, SENIOR COUNSEL A/W
SRI. SARAVANA .S, ADVOCATE)
AND:
1. THE STATE OF KARNATAKA,
Digitally signed
by JUANITA URBAN DEVELOPMENT DEPARTMENT,
THEJESWINI M.S BUILDING, DR. AMBEDKAR VEEDHI,
Location: HIGH BENGALURU-560 001,
COURT OF REPT. BY ITS PRINCIPAL SECRETARY.
KARNATAKA
2. BRUHAT BENGALURU MAHANAGARA PALIKE,
N.R. SQUARE, BENGALURU-560 002,
REP. BY ITS COMMISSIONER.
3. ADDITIONAL COMMISSIONER,
DASARAHALLI BANGALORE,
BRUHAT BENGALURU MAHANAGARA PALIKE,
BENGALURU-560 057.
4. ASSISTANT REVENUE OFFICER,
BRUHAT BENGALURU MAHANAGARA PALIKE,
-2-
NC: 2024:KHC:29292
WP No. 10400 of 2024
SHETTY HALLI SUB DIVISION,
BENGALURU-560 015.
...RESPONDENTS
(BY SRI. S.R. KHAMROZ KHAN, AGA FOR R1;
SRI. B.S. KARTHIKEYAN, ADVOCATE FOR R2 TO R4)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO DECLARING THAT
IMPUGNED DEMAND NOTICE ISSUED BY THE R4 BEARING NO.
SA.KAM.AA (SHETTIHALLI) P.R/56/23-24 DTD 22.03.24 AS PER
ANNEXURE-F IS VOID ABINITO AND ETC.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE R DEVDAS
ORAL ORDER
(PER: HON'BLE MR JUSTICE R DEVDAS)
The petitioner-Educational and Charitable Trust is before
this Court, aggrieved of the impugned demand notice dated
22.03.2024 issued by the 4th respondent at Annexure -F .
2. Sri. D. R. Ravishankar, learned Senior Counsel
appearing on behalf of the petitioner-Trust submits that in the
impugned demand notice, in a tabular column, the type of
building and its activities based on which the demand is raised
have been indicated. Learned Senior Counsel submits that it is
not disputed at the hands of respondent-BBMP that the
petitioner-Trust is an Educational and Charitable Trust which
has established medical college. Along with the medical college
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certain facilities such as hostel, staff quarters and parking
facility for student as well as the staff have been provided for.
3. Having regard to the demand raised, learned
counsel for the Senior Counsel submits that the respondents
seek to contend that the exemption of payment of property tax
insofar as education institutions are concerned in terms of
Section 94 of the Karnataka Municipalities Act, 1964
(hereinafter referred to as 'the Act' for short) is available only
for the college building or school building and not for hostel,
quarters, hospital, etc., However, the issue is no more res
integra since similar issues arose in many such cases and a
Coordinate Bench of this Court in the case of Navodaya
Educational Trust Vs. The Commissioner, City Municipal
Council, Raichur in W.P.No.103010/2013 dated
15.01.2021 at Kalaburgi Bench has held that the purpose of
granting the exemption under Section 94 of the Act is to
incentivize and promote the education. It is for that reason,
the payment of property tax has been exempted for such
educational institutions. It was therefore held that along with
the educational institution various other infrastructures are
required to be provided which should be auxiliary to the main
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use and therefore, if the Educational Trust has established
along with the main building use for the purpose imparting
education, such other construction, such as canteen, staff
quarters etc., it should be considered as auxiliary uses for the
main use.
4. Learned Senior Counsel would further submit that in
the present context since the petitioner-Trust has taken
permission for establishing medical college, the Trust is
required to provide for various infrastructures having regard to
the guidelines issued by the National Medical Council. It is
mandated by the National Medical Council that a medical
college should necessarily have a hospital attached to the
institution so as to enable the students to have practical
knowledge along with the theory papers that are imparted to
the students.
5. In that view of the matter, learned Senior Counsel
submits that the demand raised by the respondents insofar as
the hospital, staff quarters, student quarters, parking area and
research unit (Control animal house as in Sl.No.5 in the
impugned demand notice) cannot be sustained.
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6. Having regard to the judgment rendered by the
Coordinate Bench, this Court is of the considered opinion that
the impugned demand raised by the respondents cannot be
sustained.
7. Accordingly, writ petition is allowed. The
impugned demand notice at Annexure - F is hereby quashed
and set aside. If the petitioner-Trust is required to pay the
service charges, the same shall be paid, if not already paid.
8. At this Juncture, learned Senior Counsel submits
that 25% of the demand amount has been deposited with the
respondents in terms of the directions issued by this Court.
Respondents are permitted to appropriate the same towards
the service charges or any other arrears of service charges
payable by the petitioner-Trust.
Ordered accordingly.
Sd/-
(R DEVDAS)
JUDGE
KTY
