By the Court.—We have heard Shri A.D. Saunders, learned counsel for the petitioner. Learned Standing Counsel appears for the State respondents. Shri Afzal Beg appears for the Allahabad Jal Sansthan, Allahabad, which is now known as Nagar Nigam, Allahabad.

2. This writ petition is directed against the demand of water tax for the year 2009-10 of Rs. 3,61,025/-, at 12 1/2% of the annual value of the building, assessed by the Nagar Nigam, Allahabad for the house tax at Rs. 21,87,800/-.

3. Brief facts giving rise to this writ petition are as follows :

“There is an institution known as Boys’ High School & College, Allahabad. The institution imparts education up to Class XII and is affiliated to the ICSE.

There is a church known as ‘Holy Trinity Church, Allahabad’ for Christians’ worship. Alongwith the church building there was open land of the church. On the campus of the church there is a hall known as ‘Knox Hall’. This hall stands independently and is used for church’s religious activities. Till date this hall is used for church activities as and when required.

Boys’ High School & College which had been established in the year 1860 required an additional annexe as the admission of student was falling beyond its capacity. The management decided to open an annexe in the campus of Holy Trinity Church with the permission of the Church. This annexe was known as ‘Holy Trinity School (Annexe of Boys’ High School & College) Allahabad.

Holy Trinity Church gave permission for opening of the annexe as it was for the charitable and good cause. Accordingly Holy Trinity School, an annexe of Boys’ High School & College was opened in the year 1987.

It is submitted that Holy Trinity School is only an annexe of Boys’ High School & College, being part and parcel of the said school and is not a separate institution.

Nagar Nigam, Allahabad (earlier known as Nagar Mahapalika, Allahabad) imposed house tax in respect of ‘Knox Hall’ for a certain amount under the heading ‘Knox Memorial Hall’ and for the year 1999 made an assessment of Rs. 386.40, which was duly paid on 12.7.1999, even though ‘Knox Hall’ stood exempted being church property used for religious activities. However, to avoid any controversy the amount of Rs. 386.40 was paid in respect of ‘Knox Hall’.

The Nagar Nigam, as it is now known, made an assessment dated 29.10.2002 in respect of Knox Memorial Hall, 16/2 Church Lane, Allahabad for Rs. 24,26,403/- alleged to be for the period 1.10.1997 to 31.3.2003 taking the annual rental value to be Rs. 21,37,800/- and imposed House Tax @ 22% of the annual value of Knox Hall.”

4. Rt. Rev. A.R. Stephan, Bishop of Lucknow, Church of North India has filed a separate Writ Petition No. 2996 of 2002, against the assessment of the house tax on the same property, claiming exemption under Section 177 (c) of the U.P. Municipal Corporation Act, 1959 for payment of house tax. An interim order was passed staying the levy and realisation of the house tax. By a separate judgment we have allowed the writ petition today with the findings that Section 177 (c) of the U.P. Municipal Corporation Act, 1959, as amended from time to time, provides for an exemption from general tax on the school buildings, whether they are aided by the Government or not.

5. In this writ petition we are concerned with the payment of water tax, which is closely linked and is based on percentage of the payment of house tax, but is levied for different object and purpose namely establishment and maintenance of the water supply and sewerage services in the urban areas.

6. There is no exemption provided under the U.P. Water Supply and Sewerage Act, 1975 to the school buildings, whether they are aided by the State Government or not from payment of water tax. The water tax is to be paid on the basis of assessment of the annual value at the rates prescribed under Section 52 (2), which shall not be less than 6% and not more than 14%, and sewerage tax, which shall not be less than 2% and more tha