ORDER

The petitioner has challenged the impugned demand notice dated

22.01.2022 issued by the 5th respondent demanding an amount of Rs.10,33,412/- as tax due from the petitioner for a period between 2019, 2020 and 2021-2022. At the time of admission of this Court, an interim order was passed on 10.02.2022 by directing the petitioner to pay 1/4th of the amount.

2.It is the specific case of the petitioner that the petitioner is entitled for exemption, in terms of Rule 19 of the Tamil Nadu Village Panchayat (Assessment and Collection of taxes) Rules, 1999 (herein after referred to as Rules). It is further submitted that though the petitioner was running a college in the said premises, the petitioner had closed down the college for want of students and therefore the petitioner has been unable to generate revenue to discharge the house tax under the provisions of the Tamil Nadu Panchayat Act, 1994. It is submitted that after the outbreak of COVID-19 pandemic, the premises was used by the Government under Section 172 of the Tamil Nadu Panchayat Act, 1994 and Rule 19 of the Rules for treating the COVID-19 patients as a temporary hospital/clinic. It is therefore submitted that it is a fit case for granting exemption in terms of Rule 19 of the aforesaid Rules.

3.The petitioner had earlier filed W.P(MD)No.5733 of 2020, whereby the petitioner had challenged the impugned order of the 4th respondent namely, the Block Development Officer in Na.Ka.No.A8/251/2019, dated 10.02.2020 and the impugned order of the 5th respondent in Na.Ka.No.A8/251/2019, dated 13.03.2020, demanding the amount of Rs.3,94,471/- property tax due from the petitioner under the provisions of Tamil Nadu Village Panchayat (Assessment and Collection of Taxes) Rules, 1999. The writ petition was dismissed with the following observation, dated 05.01.2021.

"2. The petitioner challenges the levy of property tax on the petitioner institution. According to the petitioner, it is an educational institution run on charitable basis and that therefore, they have to be exempted. But then, the statute itself has been amended and the educational institutions have also been brought within the net. Therefore, this Court cannot grant any relief.

3. It is of course open to the petitioner herein to move the appropriate authorities for grant of exemption or any other appropriate relief. With this liberty to the petitioner to move the Government, this Writ Petition stands dismissed......"

4.The petitioner has now received the impugned demand notice for a sum of Rs.10,33,412/- for the period of 2019, 2020 and 2021-2022. It is the case of the petitioner that during the period after the outbreak of COVID-19 Pandemic, this college has been under the control of the Government for treating the COVID-19 patientS and used as a Covid Center and that petitioner is not generating any income by way of education.

5.Opposing the prayer, the learned counsel for the official respondents submits that the tax is payable under Section 172 of the Tamil Nadu Panchayat Act, 1994 by the petitioner. It is submitted that the remission upon the vacancy will arise only if appropriate documents are filed.

6.The learned counsel for the official respondents submits that the 3rd respondent/Assistant Director Panchayats has also sent a representation and has also asked the 4th respondent to enquire and report the same. Pending such enquiry by the 3rd and 4th respondents, the impugned demand of Rs.10,33,412/- is cannot to be interefered. It is therefore submitted that the writ petition is devoid of merits as the petitioner is required to pay tax under the provisions of the Tamil Nadu Panchayat Act, 1994 read with Tamil Nadu Panchayat (Assessment and Collection of Taxes) Rules, 1999.

7.It is further submitted that if the petitioner seeks remission of the tax in terms of Rule 19 of the aforesaid Rules, the petitioner is required to follow the procedure prescribed therein and since the petitioner has not complied with for vacancy remissi