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2022 Supreme(Mad) 3077
IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. ANAND VENKATESH, J.
Tamil Baptist School Committee Namakkal represented by its Treasurer & Correspondent of Strict Baptist Mission High School, Namakkal by David Livingston - Appellant
Versus
The State of Tamil Nadu rep. by its Secretary Revenue Department, Chennai & Others - Respondent
W.P.Nos. 37905 of 2005 & 2017 of 2006
Decided On : 25-07-2022
For the Petitioner:R.D. Ashok Kumar, S.N. Ravichandran, Santhanam, Advocates. For the Respondents:R1to R3, C. Sathish, Government Advocate.
The main legal point established in the judgment is the interpretation of the exemption for urban land used by schools under Section 6(h) of the Tamil Nadu Urban Land Tax Act, 1966, and its application to aided minority schools.
Headnote:
Urban Land Tax - Exemption for Schools - Tamil Nadu Urban Land Tax Act, 1966, Section 6(h), Section 29 - The court discussed the issue of recovery of urban land tax and the exemption provided under Section 6(h) of the Act for urban land used by schools. The court considered the status of the school as an aided minority school and its eligibility for exemption from urban land tax. The court directed the respondent to issue a fresh notice to the petitioner to recover the arrears of urban land tax with respect to the subject property, based on the ownership and occupation of the property.
Fact of the Case:
The Writ Petitions involved the recovery of urban land tax and a direction forbearing the respondent from proceeding against the properties belonging to the school committee and a subsequent purchaser of the subject property.
Finding of the Court:
The court found that the petitioner in W.P. No.37905 of 2005 was not connected with the subject property, as they had already sold the property. The court directed the respondent in W.P. No.2017/16 to issue a fresh notice to the petitioner to recover the arrears of urban land tax with respect to the subject property.
Issues: The issues involved the recovery of urban land tax, the exemption for urban land used by schools, and the ownership and occupation of the subject property.
Ratio Decidendi: The court considered the provisions of the Tamil Nadu Urban Land Tax Act, 1966, particularly Section 6(h) and Section 29, to determine the eligibility for exemption from urban land tax based on the status of the school as an aided minority school and the ownership of the subject property.
Final Decision: Both the Writ Petitions were disposed of accordingly, with no costs imposed.
JUDGMENT
(Prayer in W.P. No.37905 of 2005 : Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus or any other appropriate writ or order to for bear the IIIrd respondent from enforcing the Distraint order dated 8.11.2005 issued under section 8 of the Revenue Recovery Act against any of the premises or movable or immovable properties of the Tamil Baptist School committee Namakkal and Strict Baptist Mission High School Namakkal.
Prayer in W.P. No.2017 of 2006 : Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus or any other appropriate writ, order or direction in the nature of writ forbearing the respondent from proceeding against the petitioner-s property situated in survey No.478/1A Block No.14 & 19 in Namakkal Village Namakkal Dist. to the extent of 35,316 sq.ft. in pursuant to the Demand Notice dated 3.10.2005 without following the procedure.)
Common Order:
The issue involved in both the Writ Petitions are common and hence they are taken up together, heard and disposed of through this common order.
2. The petitioner in W.P. No.37905 of 2005 is the school committee who have sought for the issue of Writ of Mandamus to forebear the 3rd respondent from enforcing the distraint order dated 08.11.2005 issued under the Revenue Recovery Act against the properties belonging to the school committee.
3. W.P. No.2017 of 2006 has been filed by the subsequent purchaser of the subject property seeking for the very same relief.
4. When these Writ Petitions came up for hearing on 08.06.2022, this Court passed the following order:
“The Subject matter of challenge in both these writ petitions pertains to the proceedings initiated by the respondent for recovery of the Urban Land Tax that is due and payable by the petitioner in WP No.37905 of 2005 and for a direction forbearing the respondent from proceeding against the property in which the school is run by the petitioner in WP No.2017 of 2006.
2. A specific stand has been taken in the affidavit filed in support of the writ petition in WP No.2017 of 2006 to the effect that the school in question is an aided minority school.
3. Section 29 of the Tamil Nadu Urban Land Tax Act, 1966, (hereinafter called as the “Act”) deals with exemptions in cases where the Act will not apply. One such exemption is extended to the Urban Land used by schools and it is dealt with under Section 6(h) of the Act. The respondent has not specifically denied in the counter affidavit regarding the fact that the school is an aided school. Therefore, according to the learned counsel for the petitioner, the levy of urban land tax itself is not sustainable and the consequent distraint order is also liable to be interfered with by this Court.
4. The learned Government Advocate appearing on behalf of the respondent shall take instructions with regard to the status of the school and if the school is an aided school and the aid is granted by the Government, there is no question of imposing Urban Land Tax on such a school
5. Post these writ petitions for final hearing on 23.06.2022.“
5. Heard Mr. R.D.Ashok Kumar, learned counsel appearing on behalf of the petitioner in W.P. No.37905 of 2005 and Mr. R. Santhanam, learned counsel appearing on behalf of the petitioner in W.P. No.2017 of 2006 and Mr.C. Sathish, learned Government Advocate appearing on behalf of the respondents in both the Writ Petitions.
6. The petitioner in W.P. No.37905 of 2005 has taken a very specific stand at Paragraph 8(b) of the affidavit as follows:
8. I submit that the action of the IIIrd respondent in demanding the urban land tax from the petitioner committee and school is wholly illegal and totally without jurisdiction for the following reasons:
....
b. The Salem District Tamil Strict Baptist Society has sold the site and the school building in favour of Deva
