Buildings used for educational purposes, including essential office buildings, are exempted from property tax under Section 83(1)(c) of the Tamil Nadu District Municipalities Act.

Heard both sides.

2. The petitioner is the Managing Trustee of Merit Educational Charitable Trust cum Principal of Merit Matriculation School, Ambasamudram, Tirunelveli District. It is an unaided educational institution run by the said Trust and the Matriculation school is imparting education to 200 students studying in that school. The school has constructed buildings namely Block A to E and Door No.1 was allotted to the buildings and the respondent Municipality issued demand notice and the said notification, dated 05.10.2007 was issued for collecting the property tax for buildings owned by the petitioner's Institution and the same is challenged in this writ petition.

3. It is stated in the affidavit that the petitioner's Institution buildings are used for educational purpose and therefore, as per section 83(c) of the Tamil Nadu District Municipalities Act, such buildings are exempted from the property tax and hence, the respondent cannot levy any property tax for those buildings.

4. The respondent filed a counter stating that the petitioner is not entitled to claim any exemption and they are not imparting education as a Charitable Trust and they are collecting huge fees from the students and therefore, even though the school is run by the Trust, they are not entitled to claim exemption from property tax. It is further stated that the petitioner has not obtained permission from the Municipal Council for exemption of property tax for their buildings and therefore, they are liable to pay the property tax for the buildings owned by them.

5. Mr.V.Meenakshisundaram, the learned counsel appearing for the petitioner submitted that under Section 83(1)(c) of the Tamil Nadu District Municipalities Act, exemption was given to buildings used for educational purpose, including hostel attached thereto and they are claiming exemption not on the basis of running a Charitable Trust, but on the basis of the buildings used for educational purposes and therefore, as per the above said provision, property tax cannot be levied in respect of buildings used for educational purpose.

6. Mr.M.Saravanakumar, the learned Counsel appearing for the respondent submitted that in the Full Bench Judgment reported in 2009(8)MLJ 245, in the case of President, K.Vellakulam Panchayat, Kallikudi Chatram, Madurai District vs. Kamaraju College of Engineering and Technology Managing Board, rep. by its Secretary S.P.G.C. Srimurugan, Virudhungar. and in 2008(4) CTC 715, in the case of Kamalakshi Pandyurangan College of Pharmachy, rep. by its Secretary & Correspondent, R.Parimala Chandran, Ayyampalayam Village Post, Tiruvannamalai606 603 vs. The President, Ayyampalayam Village, Panchayat, Tiruvannamalai, this Court has held that there is no automatic exemption to the buildings used for educational purpose and that has to be decided by the Local Authorities and unless, exemption is granted by the local authorities, the buildings owned by the educational institutions are liable to be assessed for property tax and further, the petitioner is running educational institution as an un-aided institution and therefore, exemption cannot be claimed for such institution as laid down in the judgment reported in 2008(4) CTC 715, in the case of Kamalaksh Panddyurangan College of Pharmacy vs. The President, Ayyampalayam Village Panchayat.

7. Mr.V.Meenakisundaram, the learned counsel appearing for the petitioner distinguished the Full Bench judgment reported in 2009(8)MLJ 245 in the case of President v. Kamaraj College of Engg & Technology Managing Board, rep. by its Secretary S.P.G.C. Srimurugan, Virudhungar and submitted that the Full Bench judgment was rendered with reference to the provision of the Tamil Nadu Panchayat Act and as per the provision of the Tamil Nadu Panchayat Act, no exemption can be given for property tax, except in accordance with Rules and Rule 15(c) of the Tamil Nadu Panchayat speaks about the exemption to be given to the Educational Institution and the