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IN THE HIGH COURT OF KERALA AT ERNAKULAM
MR.JUSTICE SYAM KUMAR V.M., J
Parisons Infrastructure (P) Limited – Appellant
Versus
Tahsildar – Respondent
JUDGMENT :
Dated this the 10th day of March, 2025 The short question that arises for consideration in the Writ Petition is whether the petitioner’s premises could be termed a ‘factory,’ entitling it to claim exemption from payment of building tax that would otherwise be payable under the Kerala Building Tax Act , 1975 (hereinafter referred to as “the Act of 1975”).
2. Petitioner is an incorporated entity engaged in the business of storing, pumping and transporting petroleum Class B and edible oils. Petitioner has for the said purpose put up at Thoppumpady Village, 12 tanks for storing Petroleum Class B each having a capacity of 17380 KL and 9 vegetable oil tanks for storing edible oils, each having a capacity of 292215 KL. Permission in the said respect had been granted to the petitioner under Section 41 A of the Factories Act , 1948 by the Labour and Rehabilitation Department of Government of Kerala as revealed by Ext.P1. Petitioner had also been granted Ext.P2 licence by the Department of Factories and Boilers, Government of Kerala. Ext.P3 licence to import and store petroleum in the facility put up has also been secured by the petitioner from the Dy. Chief Controller of Explosives
The court established that premises engaged in pumping oil qualify as a factory under the Factories Act, thus entitling them to exemption from building tax under the Kerala Building Tax Act.
The absence of evidence for manufacturing activity in a building justifies the rejection of a claim for exemption from building tax under the Kerala Building Tax Act.
Point of Law : Section 3(1)(b) of Act buildings used principally for religious, charitable or educational purposes or as factories or workshops or cattle/pig/poultry farms or poly houses.
Statutory authorities must refer exemption claims to the Government if raised during assessments under the Kerala Building Tax Act, ensuring compliance with mandatory procedural obligations.
Section 3 of Act, 1975 does not necessarily exclude carrying on activities for which charges are levied on those who can pay, and what is relevant is whether building is principally used for charitab....
The court recognized that a building primarily used for providing free accommodation to retired clergy can qualify for tax exemption under charity provisions, regardless of limited access to certain ....
Charitable purpose contemplated in Section 3 of Act does not necessarily exclude carrying on activities for which charges are levied on those who can pay and what is relevant is whether building is p....
Establishments registered under the Tamil Nadu Catering Establishments Act are exempt from the Factories Act, as per Section 30, and the nature of activity determines legislative applicability.
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