Luxury tax liability under the Kerala Building Tax Act must consider the total plinth area of the building post-additions, overriding prior interpretations limiting the assessment to additional areas.

J U D G M E N T

This writ petition has been filed challenging Exts.P3, P5 and P8 by which the authorities under the Kerala Building Tax Act, 1975 had called upon the petitioner to pay luxury tax after making assessment of the building. The revisional authority did not entertain the revision on the ground that appeal is the remedy. Petitioner submits that the petitioner is not liable to pay luxury tax in terms of Section 5A of the Kerala Building Tax Act as the petitioner had made only additional constructions to the building.

2. Counter affidavit had been filed by the 3rd respondent supporting the stand taken by the assessing authority. According to them, if additional constructions are made, the building is liable to be assessed for building tax as well as luxury tax.

3. The issue projected by the petitioner is covered by the judgment of this Court in State of Kerala and Others v. Moilakariyath Abdullla [2012 (1) KHC 43 (FB)], wherein, after W.P(C) No.1010/2011 considering the entire issue, this Court held at para 6 as under;

“Going by the above scheme of levy of tax on constructed buildings and periodical revision of building tax as and when additions or modifications of the existing building are made, we feel the same scheme applies to luxury tax as well. The liability for luxury tax is on residential buildings with plinth area of 278.7 sq.ms. or more, the construction of which are completed after 01/4/1999. So much so, if any modification is made to an existing residential building after 01/4/1999 leading to increase in plinth area reaching 278.7 sq.ms. or more, the building will attract luxury tax under Section 5A of the Act. does not authorise independent assessment of additional plinth area constructed to a residential building after 01/4/1999 for the purpose of luxury tax alone. So much so, in our view, the judgment of the Division Bench above referred declaring the liability for luxury tax for extensions made to residential buildings after 01/4/1999 only if such additions exceed the limit of plinth area provided under is against the statutory scheme of levy of luxury tax. In fact, the statute does not visualise separate treatment of existing or already completed constructions and additions made to such buildings. A residential building remains the same and should be treated only as one building, no matter modifications or additions are made periodically leading to extension of plinth area. Since the assessment is only on building W.P(C) No.1010/2011 constructed, reconstructed or modified with extension, luxury tax has to be considered with reference to the total plinth area of the building with the additions. So much so, there is no scope for considering liability for luxury tax with reference to the additional plinth area constructed after 01/4/1999 as held by the Division Bench. We, therefore, hold that applies to residential buildings, the plinth area of which after extensions or additions made after 01/4/1999 reach or exceed 278.7 sq.ms. In other words, for the purpose of levy of luxury tax plinth area of the building as a whole has to be considered with the additions or extensions made after 01/4/1999. We, therefore, hold that the view expressed by the Division Bench in the above judgment is not correct and accordingly, we overrule the above referred Division Bench judgment.”

Having regard to the aforesaid proposition of law, I do not think that any further grievance is to be considered in this writ petition. The contentions urged by the petitioner is very well covered by the aforesaid judgment.

Writ petition is, hence, dismissed.