Lessee companies are not entitled to tax immunity under Article 285, as exemption applies solely to properties owned directly by the Union, not those leased for commercial use.

JUDGMENT :

Baljinder Singh Sandhu, J.

1. The present writ petition has been filed by petitioner –Taleda Square Pvt. Ltd. with the following prayers:

“It is, therefore, humbly prayed that this writ petition may kindly be allowed with costs and by an appropriate writ, order or direction -

i) Impugned notification dated 24.08.2016 (Annex.11) issued by the Director cum Special Secretary, Local Self Department & order dated 21.1.2020 (Annex. 12) issued by the Director cum Joint Secretary, Local Self Department, Government of Rajasthan, Jaipur may be declared as ultra vires and in violation of Article 285 of the Constitution of India and section 107 of the Act of 2009 and quashed and set aside.

ii) notice dated impugned notices dated 31.1.2020, 6.5.2022, 31.5.2022 and 3.06.2022 may kindly be quashed and set aside.

iii) That the respondents may kindly be directed to issue Fire NOC without demanding Fire Cess or any fees with regard to premises in question from the petitioner company.

iv) During pendency of the writ petition, if any order is passed or any action is taken against the petitioner prejudicial to his interests, the same may kindly be quashed and set aside.

v) Any other writ order or direction which this Hon'ble Court deem just and proper in the facts and circumstances of the case may kindly be passed in favour of the petitioner.

vi) Cost of the writ petition may kindly be awarded to the petitioner.”

2. The brief facts of the case necessary for adjudication of the present writ petition are that Rail Land Development Authority (hereinafter referred to as 'the RLDA') was constituted under the Railways Act, 2005 with an obligation of commercial development of railway land entrusted to it by the Central Government, Ministry of Railways. The RLDA with an intention to undertake development of Multi Functional Complex (hereinafter referred to as MFC) at Ajmer, invited the bids vide notice dated 18.07.2014 and letter of acceptance was issued in favour of the successful bidder M/s. Smart Hotel Private Ltd., which is the parent company of the petitioner. The M/s Smart Hotel Private Ltd. promoted and incorporated the petitioner company under the provisions of the Companies Act, and created special purpose company for undertaking the development of the site in question. In pursuance thereto, a lease agreement dated 31.03.2015 was executed between the RLDA and the petitioner Taleda Square Pvt. Ltd. (hereinafter referred to as 'the petitioner company') and land measuring 1499.89 square meter was leased out to the petitioner for 44 years, 11 months and 7 days for the purpose of development of the MFC, which is a nature of commercial complex.

3. The petitioner company in pursuance to the lease deed started development and constructed the MFC, however the petitioner company was served with a notice dated 31.01.2020 under Section 194 by the Municipal Corporation, Ajmer under Rajasthan Municipalities Act, 2009 asking the petitioner company to procure the Fire No Objection Certificate (NOC). Thereafter, another notice dated 16.05.2022 was served to the petitioner company demanding Rs.5,03,853/- towards payment of fire cess and fees for fire NOC. Thereafter, on 31.05.2022, another notice dated 31.05.2022 under Section 130 of the Rajasthan Municipalities Act, 2009 was issued to the petitioner company raising demand of Rs.13,41,311/- towards Urban Development Tax. The said tax is calculated on the size of the property as well as existing DLC. However, this notice was replied, but again the Municipality issued a fresh notice to pay u