Kerala High Court
Jayaraj Properties vs State Of Kerala on 13 March, 2025
Author: Bechu Kurian Thomas
Bench: Bechu Kurian Thomas
WP(C) NO. 8503 OF 2025
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS
THURSDAY, THE 13TH DAY OF MARCH 2025 / 22ND PHALGUNA, 1946
WP(C) NO. 8503 OF 2025
PETITIONER(S):
1 JAYARAJ PROPERTIES, AGED 51 YEARS
FIRST FLOOR, SURUMI PLAZA,
EAST FORT ROAD, FORT MAIDAN, PALAKKAD;
REPRESENTED BY ITS MANAGING PARTNER,
R.G. RAMASUBRAMANIAM, AGED 51 YEARS,
S/O. R.S. GOPALAKRISHNAN (LATE),
RESIDING AT 'JAYARAJ', RAMANATHAPURAM,
PALAKKAD DISTRICT, PIN - 678001
2 R.G. VENKATA SUBRAMANIAN @ R.G. VENKATESH
AGED 60 YEARS
S/O. R.S. GOPALAKRISHNAN (LATE),
PARTNER JAYARAJ PROPERTIES,
RESIDING AT 'RATHNAPRABHA',
RAMANATHAPURAM,
PALAKKAD DISTRICT, PIN - 678 001.
BY ADVS.
JACOB SEBASTIAN
WINSTON K.V
ANU JACOB
BHARATH KRISHNAN G.
ANJANA A.S.
ANJANA KRISHNAN
RESPONDENT(S):
1 STATE OF KERALA
REPRESENTED BY SECRETARY TO GOVERNMENT,
DEPARTMENT OF REVENUE,
GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695 001.
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2 THE REVENUE DIVISIONAL OFFICER
PALAKKAD, REVENUE DIVISIONAL OFFICE,
VIDYUT NAGAR, PARAKKUNNAM P.O,
PALAKKAD DISTRICT, PIN - 678 001.
3 THE TAHSILDAR
PALAKKAD, TALUK OFFICE,
CIVIL STATION,
PALAKKAD DISTRICT, PIN - 678 001.
SMT.JASMIN M.M., GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
13.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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BECHU KURIAN THOMAS, J.
......................................................
W.P.(C) No.8503 of 2025
...................................................
Dated this the 13th day of March, 2025
JUDGMENT
Petitioners challenge orders of assessment under Sections 5 and 5A of
the Kerala Building Tax Act, 1975.
2. The first petitioner is a partnership firm engaged in the construction of
multi-storied buildings. One of the apartments constructed by the first
petitioner by name 'Jayaraj Srishti' situated in resurvey No.1487/18, and
4091/52 of Ward 2 of Block 35 at Puthur Amsom, Palakkad-2 village;
became the subject matter of assessment under the Kerala Building Tax
Act, 1975 [for short, 'the Act']. As evident from Ext.P7, an amount of
Rs.23,04,830/- has been imposed on the petitioners as building tax due
on the said construction. Consequential assessment under Section 5A of
the Act has also been carried out. Petitioners challenge the aforesaid
orders of assessment under Article 226 of the Constitution of India.
3. According to the petitioners, pursuant to Ext.P1 notice issued under
Section 9(2)/9(4) of the Act, a detailed objection was filed on 08.11.2024
pointing out that the construction is an apartment complex spread over
two towers of which the structure, which was only under construction
then had 48 apartments. The construction of 47 apartments in that
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tower were being carried out by several owners, who met the cost of
construction jointly. Agreements for sale, detailed bank account
statements and other records were submitted along with the objection.
According to the petitioners, the apartment was also registered with the
Real Estate (Regulation and Development) Authority. Despite receiving
the aforesaid objection as evidenced by the endorsement on Ext.P6, the
order of assessment was issued by the authority on 16.02.2025, without
referring to any of the objections raised or the documents produced and
in a non speaking manner. Hence petitioners have approached this Court
invoking the jurisdiction under Article 226 of the Constitution of India.
4. I have heard Sri.Jacob Sebastian, the learned counsel for petitioners as
well as Smt.Jasmin M.M., the learned Government Pleader.
5. On a perusal of Ext.P7, orders of assessment under Sections 5 and 5A of
the Act respectively, it is evident that none of the materials produced by
the petitioners or the contentions raised in the objection were
considered by the authority. The impugned orders are perverse and are
non-speaking orders. In such circumstances, the orders cannot stand the
test of law. This Court has repeatedly observed that orders under the Act
must be speaking orders, and reasons must be given for imposing tax,
especially the building tax.
6. Since the impugned order is a non-speaking order, the contentions raised
by the petitioners are meritorious, and Ext.P7 order is liable to be
interfered with.
7. Accordingly, I set aside Ext.P7 orders of assessment under Sections 5 and
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5A of the Act and direct a reconsideration, as expeditiously as possible,
at any rate, within a period of three months from the date of receipt of a
copy of this judgment. Petitioners or the representative of the first
petitioner shall appear before the assessing authority on 04.04.2025 and
thereafter a date can be fixed for hearing and appropriate orders shall be
passed thereon.
The writ petition is allowed.
sd/-
BECHU KURIAN THOMAS
JUDGE
AMV/14/03/2025
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APPENDIX OF WP(C) 8503/2025
PETITIONER EXHIBITS
EXHIBIT-P1 A TRUE COPY OF THE NOTICE DATED 19.10.2024
ISSUED BY THE THIRD RESPONDENT.
EXHIBIT-P2 A TRUE COPY OF THE REGISTERED AGREEMENT FOR
SALE NO. 1823/2021 OF THE SRO, PALAKKAD DATED
27.09.2021.
EXHIBIT-P3 A TRUE COPY OF THE LEDGER EXTRACT OF THE
SEPARATE ACCOUNT FOR THE PROJECT (JAYARAJ
SRISHTI MASTER COLLECTION) ACCOUNT MAINTAINED
BY THE FIRST PETITIONER IN THE PALAKKAD
BRANCH OF HDFC BANK.
EXHIBIT-P4 A TRUE COPY OF THE GROUP SUMMARY LEDGER
STATEMENT RELATING TO THE PROJECT.
EXHIBIT-P5 A TRUE COPY OF THE REPLY DATED 08.11.2024
THAT THE SECOND PETITIONER ALONG WITH HIS
WIFE SUBMITTED TO THE THIRD RESPONDENT IN
RESPONSE TO EXHIBIT-P1.
EXHIBIT-P6 A TRUE COPY OF THE NAME AND ADDRESS OF THE
APARTMENT OWNERS OF THE BUILDING WHICH IS THE
SUBJECT MATTER OF EXHIBIT-P1 NOTICE.
EXHIBIT-P7 A TRUE COPY OF THE DEMAND NOTICE DATED
16.02.2025 ISSUED BY THE THIRD RESPONDENT.
EXHIBIT-P8 A TRUE COPY OF THE JUDGMENT DATED 16.03.2021
IN M/S. BHADRAM PROPERTIES INDIA PRIVATE LTD.
VS. THE TAHSILDAR & ORS; W.P.(C) NO. 4023 OF
2021 OF THIS HONOURABLE COURT.
