The main legal point established in the judgment is that the discretion to grant special exemptions for property tax lies with the Council with the sanction of the Government, and exemptions are granted in public interest.

JUDGMENT

(Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to call for the records in Na.Ka.No.5483/2018/AI, dated 25.01.2021 on the file of the second respondent and quash the same and consequently direct the second respondent to fix the property tax providing for exemption / concession in the tax levied on the members of petitioner Association in accordance with Section 124 of the Coimbatore City Municipal Corporation Act, 1981 read with Section 8 of the Hosur City Municipal Corporation Act.)

1. This Writ Petition has been filed by the petitioner challenging the impugned communication dated 25.01.2021 bearing reference No.Na.Ka.No.5483/2018/A1 of the second respondent and quash the same and consequently direct the second respondent to fix the property tax providing for exemption/concession in the tax levied on the members of petitioner Association in accordance with Section 124 of the Coimbatore City Municipal Corporation Act, 1981 (hereinafter referred to as "Coimbatore Act") read with Section 8 of the Hosur City Municipal Corporation Act, 2019 (hereinafter referred to as "Hosur Act").

2. By the impugned communication dated 25.01.2021, the second respondent has rejected the request of the petitioner for grant of special exemption under the provisions of the Coimbatore Act as made applicable to levy of tax under the provisions of Hosur Act.

3. It is the specific case of the petitioner that the petitioner was under the Town Panchayat and thereafter under the purview of the Hosur Act which incorporates the provisions of the Coimbatore Act as far as levy and collection of property tax.

4. The learned counsel for the petitioner submits that the petitioner is an Association representing the interest of Industrial undertaking located in the State Industries Promotion Corporation of Tamil Nadu Limited (hereinafter referred to as “SIPCOT”) Industrial Area. It is submitted that infrastructure such as water supply, sewerage and drainage arrangements is being provided by SIPCOT. W.M.P.No.241 of 2022 was filed for impleading SIPCOT as the fourth respondent which was allowed by an order dated 12.01.2022.

1. It is submitted that since vital service and infrastructure are being provided by the SIPCOT to the members of the petitioner's association, the impugned order/communication of the second respondent denying exemption under Section 124 of the Coimbatore Act under the provisions of the Hosur Act was incorrect.

2.

6. The learned counsel for the petitioner further submits that in terms of Section 124 of the Coimbatore Act, the members of the petitioner Association were entitled for special exemption as the entire area in the SIPCOT Industrial Area was not deriving any service from the first to third respondents.

7. It is the case of the Petitioner that under Proviso (a) to Section 124 of the Coimbatore Act read with Section 8 of the Hosur Act, the second respondent is empowered to provide property tax concession to the members of the petitioner Association. It is submitted that the title of Section 124 of Coimbatore Act is “Special Exemptions and Alternative Bases of Property Tax”, clearly indicates that the provision talks about exemptions provided to property tax levied under the Act by the respondents and not to water or sewerage and lighting tax.

8. Hence, applying rule of ejusdem generis “such tax” mentioned in proviso (a) could only refer to property tax and not to mere water or sewerage tax as no such differentiation is made throughout the provision and especially when the entire Part of the Act talks about property tax only.

9. It is further submitted that the provisions of Chennai City Municipal Corporation Act, 1919 (hereinafter referred to as "Chennai Act") are pari materia to the provisions of Coimbatore Act. It was further pointed out that as far as property tax is concerned under Section 99 of the Chennai Act, there are tax for (i) general purposes, (