Exemption from property tax under Section 207(1)(ba) requires recognition from the Government of Kerala, not just the Union Government.

JUDGMENT :

HARISANKAR V. MENON, J.

1. The petitioner, a CBSE affiliated School, pursuant to Ext.P1 NOC and Ext.P2 certificate of affiliation, has filed the captioned writ petition challenging the demand of property tax under the provisions of the Kerala Panchayat Raj Act ('the Act' for short) against it.

2. The short facts that arise for consideration in the writ petition are as follows:

The petitioner is having three buildings, in which the School is run by Sree Narayana National Education Mission. The fact that the petitioner is having the affiliation from the CBSE under the Union Ministry of Human Resources Development, Government of India, is clear from Ext.P2 certificate. By Exts.P3 to P5, property taxes with respect to 2016-17 and 2017-18 were sought to be realised from the petitioner. The petitioner submitted Ext.P6 objection with specific reference to the exemption available under Section 207 (1) (ba) of the Act. However, the said claim stood rejected by Ext.P7, issued by the respondent herein, taking the stand that it is only against the educational institutions having recognition from the Government, the exemption is applicable. When subsequent notices for later periods were issued demanding tax, Ext.P9 objection is filed by the petitioner before the respondent. By Ext.P10, the respondent directed the petitioner to produce the CBSE affiliation details within three days. The petitioner provided the details called for by Ext.P11 dated 08.04.2019. However, in spite of the above, the Panchayat has taken proceedings under the Cr.P.C on account of which, the petitioner has filed the captioned writ petition seeking for a declaration as regards its entitlement for the benefits of exemption from tax to the properties.

2.1 I have heard Sri.T.S.Harikumar, learned Counsel for the petitioner and Sri.K. Sudhin Kumar, learned Counsel for the respondent Panchayat.

3. Sri.Harikumar, relying on the judgment of this Court in W.P.(C) No.22014 of 2023, submits that the provision under Section 207 (1)(ba) stood omitted only from 01.04.2023 and till that date, the petitioner was entitled for the benefit under the statute.

4. Sri.Sudhin Kumar, on the other hand, relies on the judgment of this Court in Manager, Vimal Jyothi Engineering College and Others v. State of Kerala and Others , 2019 (5) KHC 641 to contend that unless and until, the educational institution is one aided/funded by the Government, the benefits under the statute cannot be extended.

5. I have considered the rival submissions as well as the connected records.

6. The provisions under Section 207 (1)(b) and (ba) read as under:

“207. Exemption from Tax, Cess, etc.

(1) The following buildings and lands shall be exempted from property tax as may be levied under S.203 and service cess as may be levied under sub-section (2) of Section 2 00, namely:-

(a) xxx

(b) building exclusively used for educational purposes or allied purposes under the ownership of educational institutions owned by the Government, aided or functioning with the financial assistance of the Government and the hostel buildings wherein the students of the said institutions reside;

(ba) building exclusively used for educational purposes under the ownership of educational institutions having the recognition of the Government and upto the level of Higher Secondary and hostel buildings in which the students of such institutions reside.”

A reading of the above provisions would show that under Section 207 , the benefit of exemption was extended under two heads. The first exemption was under 207(1)(b), wherein the benefit was provided only as against buildings exclusively used for educational purposes under the 'ownership of institutions owned by the Government, aided