Occasional religious use does not qualify a building for tax exemption under Section 3(1)(b) of the Building Tax Act if the building is primarily used for commercial purposes.

Petitioner is challenging Ext.P5 order of the Government whereunder Government has denied building tax exemption claimed under Section 3(2) of the Building Tax Act, 1975 in respect of an auditorium owned by the petitioner.

2. I have heard the learned counsel appearing for the petitioner and the learned Government Pleader appearing for the respondents and have gone through the impugned order Ext.P5.

3. The contention of the petitioner is that the building is used for conducting Sunday School and is, therefore, entitled to exemption as buildings used for religious purposes are entitled to exemption under Section 3(1

) (b) of the Act. The Government Pleader, on the other hand contended that in order to qualify for building tax exemption. The building should be used only for religious purposes and in this case the building is generally let out on all days. Whenever there is demand except on Sundays when the building is used for religious teachings. Therefore, according to him building is not entitled to exemption. The provisions granting building tax exemption under Section 3(1) (b) of the Kerala Building Tax Act 1975 is as follows “nothing in this Act shall apply to buildings used principally for religious, charitable or educational purposes or as factories or workshops’.

4. It is pertinent to note that building tax exemption will be available to a building only when it is “principally” used for the purposes mentioned in Section 3(1) (b) of the Act. Of course, Sunday School run in all Church including the petitioner’s is for imparting religious education to the parishioners which is a religious purpose. However the very name of the school as Sunday School reveals beyond doubt that the school for imparting religions education works only on Sundays. On enquiry conducted by the Government through the revenue Authorities, the Church authorities conceded that the building is rented out to marriage parties and for other functions to all sections of the society including members of other religious groups. Therefore the admitted fact is that the building is used for imparting religious education on Sundays and on all other days the building is available for letting out to parties on rent. Out of 365 days in a year there are only 52 Sundays and use of the building of 52 days in a year cannot be termed as “principal use of the building”. In the circumstance, while I hold that the Sunday School exists for religious purpose I am not inclined to interfere with Ext. P5 order because the use of the building on Sundays cannot be termed as “principal use of the building”. Principal use of the building in this case is commercial i.e., letting out on rent.

5. Apart from the above it has to be noticed that the building is constructed to function as an auditorium and not as a school. The facilities in the building are such that it can accommodate large crowd for a marriage function or a meeting. A building designed as an auditorium is not constructed mainly for use as a school. In other words, the principal object of the building constructed is commercial exploitation that is for earning income by letting it out. It’s use as a school on Sundays is only on incidental use and therefore the building is not only not used principally for religions purpose, but is not even intended for such purpose.

6. Counsel for the petitioner has raised a further argument that the rent is used for religious purposes as the Church exists only for religious purposes. However, the settled position in many decisions including that of the Supreme Court in Municipal Corporation of Delhi v. Children Book Trust (AIR 1992 SC 1456) is that the application of income earned from building for religious and charitable purpose does not entitle the building for exemption. Exemption will he available under Section 3(1) of the Building Tax Act only it the building as such is principally used for purposes referred to therein. Therefore the grant of exemption for a building let out o