By the Court.—We have heard Shri A.D. Saunders, learned counsel for the petitioner. Learned Standing Counsel appears for the State respondents. Shri Q.H. Siddiqui has filed appearance on behalf of Nagar Nigam and has also filed counter-affidavit. This matter is on the list for several months. He has not appeared on any of the dates and thus we are proceeding to hear the matter on the basis of the counter-affidavit filed by Nagar Nigam, Allahabad.

2. Rt. Rev. A.R. Stephan, Bishop of Lucknow, Church of North India, Bishop House, Allahabad has filed this writ petition against the Nagar Nigam, Allahabad and the Tax Superintendent, Nagar Nigam, Allahabad against the levy and assessment of tax on the ‘Holy Trinity School’, Knox Memorial Hall, 16/2, Church Lane, Allahabad.

3. Brief facts giving rise of this writ petition are that there is Holy Trinity Church at 16/2, Church Lane, Allahabad. There is also a hall known as ‘Knox Memorial Hall’, which is used for charitable purposes. A school building has been constructed in the same campus in which a school in the name of ‘Holy Trinity School’ is being run. The school is an annexe of Boys High School and College, Allahabad. The school is not aided by the Government. It is alleged that the school is being run by the charitable society for charitable purposes dealing in the field of education. The school also has church functions particularly in the month of December every year, in which the students of the school participate. The Nagar Nigam, Allahabad is assessing the house tax on ‘Knox Memorial Hall’ 16/2 Church Lane, regularly. It appears that the petitioner was paying the house tax at the rate of Rs. 386.40. The annual value of the building of the school was assessed for the first time and on which the house tax was assessed w.e.f. 1.10.1997 to 31.3.2003 giving rise to this writ petition.

4. The Nagar Nigam has assessed the house tax on ‘Knox Memorial Hall’ 16/2 Church Lane, Allahabad on the annual value of the building at Rs. 21,37,800/- on which house tax was worked out at Rs. 4,70,316/-. A bill for payment of current house tax and the arrears of Rs. 19,56,087/- was sent to the petitioner to be paid by 30.9.2002.

5. By an interim order dated 11.12.2002, the recovery of the bill was stayed by the Court. The order is quoted as below :

“Sri QS Siddqui may counter-affidavit within three weeks. List thereafter.

Section 177 of U.P. Municipal Corporation Act, 1959 exempted Schools and colleges from house tax. By the amended U.P. Municipal (Amendment) Act (1999), U.P. Act No. 17 of 1999, Schools and colleges are still exempted except for professional, vocational, technical and medical institutions, which are not run and managed by the Government. Hence prima face the levy of the impugned house tax appears to be illegal in view of section 177 of the Act as amended. We, therefore, stay the operations of the bill dated NIL, Annexure-3 to the writ petition till further order.”

The counter-affidavit of Shri S.L. Yadav, Legal Advisor, Nagar Nigam, Allahabad has been filed stating in para 4, 6, 8 and 10 as follows :

“4. That the contents of para 2 of the writ petition are denied as stated and it is further submitted that in the records of Nagar Nigam the building No. 16/2 Church Lane is recorded in the name of Knox Memorial and in which a School namely Holy Trinity is also running alongwith the Church and School is running in the entire building except the portion of Church. It is further submitted that in accordance to the Section 174 (a) of U.P. Municipal Corporation Act, 1959 the value of building is Rs. 3,44,02,352/- and after assessing at the rate of 7% the value comes to Rs. 21,37,800/- with effect from 1.10.1997, and in accordance to the provision of the Act the Church has been exempted while assessing the tax.

6. That the contents of para 4 of the writ petition are denied as stated and in reply it is further submitted that the Holy Trinity School which is a Branch/Annexee of Boys