This writ petition relates to demand for building tax under the Kerala Panchayat Raj Act from the petitioner. The petitioner is a company running a five star hotel within the jurisdictional limits of the 2nd respondent Panchayat. By a notice dated 28.6.2001, the petitioner was directed to pay building tax of ` 29,81,600/- under the Kerala Panchayat Raj Act and ` 1,49,080/- as library cess for the period from 1.4.2001 to 31.3.2002. Against the demand, the petitioner filed a revision petition before the Standing Committee on Taxes of the Panchayat, which was disposed of by order dated 27.7.2001 reducing the tax and cess to ` 26,83,414/- and ` 1,34,172/- respectively. On appeal, the Panchayat Committee, by resolution dated 25.8.2001, reduced the same further to ` 22,36,200/- and ` 1,11,810/- respectively. The petitioner filed a further appeal to the Deputy Director of Panchayats, which was disposed of by Ext.P1 order dated 14.01.2002, directing the Panchayat to fix the tax as directed therein. The petitioner challenged the said order in O.P.No.7137/2002 and obtained Ext.P2 order of stay. During the pendency of the original petition, demand notices were issued fixing the tax as ` 16,75,217/-, the recovery as per which, was stayed by Exts.P3 and P4 interim orders on payment of 50% of the amounts demanded. The petitioner complied with the condition for the interim orders. Challenging Ext.P1 order, the petitioner filed Ext.P5 appeal before the Government and, by Ext.P6 judgment, this Court permitted the petitioner to withdraw the original petition on the submission of the learned Government Pleader that the said appeal would be disposed of within two months, with a further direction that the demand for tax pending shall not be enforced till the Government passes orders on the appeal. Pursuant thereto, Ext.P7 order dated 7.12.2004 was passed by the Government, dismissing the petitioner’s appeal. Against the same, the petitioner filed Ext.P8 review petition before the Government, which was entertained by the Government and Ext.P9 order dated 23.12.2005 was passed, the operative portion of which reads as follows:

“On considering all the facts and circumstances of the case, Government come to the conclusion that the tax in this case shall be fixed as per rule 6(4) of the Kerala Panchayat Raj (Building tax and surcharge thereon) Rules 1996 since the rooms are let out on daily rental basis and that the tariff shall be calculated presuming that the 151 rooms are let out for 100 days in a year for Rs.2200/- per day. No separate tax shall be levied for the utility area (reception, visitors lounge etc. in the ground floor) and the open spaces which are used by the customers of the Hotel and for which no rent is collected separately.

Hence Government are now hereby direct the Marudu Grama Panchayat to re-assess the building tax of Messrs. M-Far Hotel according to the facts mentioned above.”

Pursuant thereto, the 3rd respondent passed Ext.P10 order dated 6.3.2006, the operative portion of which reads as follows:

(LANGUAGE)

In accordance with the said order, Ext.P11 demand notice dated 10.3.2006 was issued demanding building tax for the periods from 2001-02 to 2004-05 and 2005-06 with penal interest thereon. It is under the above circumstances, the petitioner has filed writ petition seeking the following reliefs:

“a) issue a writ of certiorari or other appropriate writ, order or direction quashing Ext.P9 order passed by the 1st respondent.

b) issue a writ of certiorari or other appropriate writ, order or direction quashing Ext.P10 order and Ext.P11 demand notice issued by the 3rd respondent.

c) declare that the petitioner is not liable to pay penal interest a (sic) demanded in Ext.P11 notice.”

2. The petitioner raises three contentions. The first is that the hotel building is not a building that is ordinarily let out and, therefore, the assessment has to be made under Rule 4(ii) of the Kerala Panchayat Raj (Building Tax and the Surch