Exemption from tax under the Kerala Panchayat Raj Act requires government recognition, which was not established by the petitioner.

JUDGMENT

The petitioner is stated to be the Managing Director of an educational institution affiliated to the Central Board of Secondary Education (CBSE). According to him, the said educational institution also has recognition from the State Government.

2. The petitioner has been directed to satisfy the tax liability under the provisions of the Kerala Panchayat Raj Act for the period from 2015–2016 onwards, as evidenced by Ext. P5. The petitioner contends that, in the light of Ext.P2 Government Order dated 12.07.2004, he is entitled to exemption and, therefore, the tax demanded under Ext.P5 is liable to be set aside.

3. I have heard the learned counsel for the petitioner and the learned Government Pleader for the respondents.

4. The writ petition, as noticed earlier, is essentially instituted seeking to rely on the Government Order at Ext.P2 dated 12.07.2004. True, the afore Government Order seeks to extend the benefit of exemption provided under Section 207 (2) of the Act with reference to schools which have been recognised by the CBSE/ICSE. However, it requires to be noticed that the provisions of Section 207 of the Act stood amended in the year 2009 and after the amendment, the provisions of Section 207 , to the extent relevant herein would read as under;

“207. Exemption from Tax, Cess, etc. - (1) The following buildings and lands shall be exempted from property tax as may be levied under S.203 and service cess as may be levied under sub-section (2) of Section 200, namely:-

(a) xxx (b) building exclusively used for educational purposes or allied purposes under the ownership of educational institutions owned by the Government, aided or functioning with the financial assistance of the Government and the hostel buildings wherein the students of the said institutions reside;

(ba) building exclusively used for educational purposes under the ownership of educational institutions having the recognition of the Government and upto the level of Higher Secondary and hostel buildings in which the students of such institutions reside.”

A reading of the afore provision would show that the benefit of exemption is available only with reference to the situations covered by clause (b) and (ba) of sub-section 1 of Section 207 . Under the first clause, the benefit is available only when the buildings are owned by the “Government”, or when it is aided or functioning with the financial assistance of the Government. The second scenario is under clause (ba) as per which the benefit is extended when the institution has the recognition of the Government, that too up to the level of higher secondary.

5. However, in the case at hand, the petitioner is not able to establish that his school is having a recognition by the Government or that it is owned by the Government. That being so, the prayer for exemption cannot be accepted. The notification at Ext.P2 dated 12.07.2004 cannot also hold the field in view of the amendment from 2009 onwards as noticed above.

6. This Court has already considered a similar issue in the judgment rendered in Vidya Jyothi Central School v. Oachira Grama Panchayat [2024 (6) KHC 157], deciding the issue in favour of the revenue.

Resultantly, I find no merit in this writ petition and the same would stand dismissed.

Sd/-