W.P.No.103010/2013

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IN THE HIGH COURT OF KARNATAKA

KALABURAGI BENCH

DATED THIS THE 15^TH DAY OF JANUARY, 2021

BEFORE

THE HON’BLE MR.JUSTICE SURAJ GOVINDARAJ

WRIT PETITION No.103010/2013 (LB-RES)

Between:

Navodaya Education Trust

Navodaya nagar, Raichur

By its Chairman –

S. Rajendra Reddy

S/o late Rajshekhar Reddy

Age: 49 years, R/o Anusha nagar

Mantralayam Road, Raichur

... Petitioner

(By Sri Chaitanyakumar C.M., Advocate)

And:

The Commissioner

City Municipal Council

Raichur-584101

... Respondent

(By Sri R.S.Sidhapurkar, Advocate)

This Writ Petition is filed under Articles 226 and 227

of the Constitution of India praying to quash the impugned

W.P.No.103010/2013

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notice

dated

17.08.2013

bearing

No.RANASA/KAMSHA/TERIGEVASULI/CR/02/2011-12/1151

as at Annexure-D to the writ petition and etc.

This petition coming on for Preliminary Hearing in ‘B’

Group, this day, the Court made the following:-

ORDER

1.

The petitioner is before

this Court seeking

certiorari to quash the notice dated 17.08.2013 at

Annexure-D issued by the respondent calling upon

the petitioner to make payment of property tax in

respect of buildings in the premise of the college

run by the petitioner used for the purpose of

canteen, petrol bunk as also residential quarters of

the staff of the college.

2.

By relying upon Section 94 of the Karnataka

Municipalities Act, 1964, (for short ‘the Act’) the

petitioner contends that,-

W.P.No.103010/2013

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2.1.

Any premises and/or property used for the

purpose of education are exempt from

payment of property tax and as such,

demand

made

by

the

respondent/City

Municipal Council, Raichur, calling upon the

petitioner to make payment of the tax on the

buildings used for the purpose of canteen,

petrol bunk, staff quarters is untenable

inasmuch as, the said buildings are used for

purpose incidental to educational facilities

provided by the petitioner inasmuch as, the

petitioner has 49 acres 28 guntas campus

which is situated away from the city and as

such, for the benefit of the students and the

staff, the petitioner has provided space for

utilization as Bank which in fact provides

banking facilities for the students and staff of

the educational institution.

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2.2.

The petitioner has provided canteen facilities

to both students and staff of the college so

as to enable those persons to avail of such

canteen facilities and/or refreshments therein

during the course of their education or work

at the educational institution.

2.3.

A petrol bunk has also been provided within

the premises of the petitioner’s educational

institution so as to enable the students and

staff to purchase petrol at the said petrol

bunk as an amenity to the said persons.

2.4.

Staff quarters have been provided to enable

the lecturers and/or staff to reside in the

campus

and

to

be

available

for

the

educational

institution

to

render

their

assistance as and when acquired.

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3.

For all the aforesaid reasons, Sri Chaitanyakumar

Chandriki, learned counsel for the petitioner would

submit that these buildings are used for the

purpose incidental to educational activities and as

such, would come within the purview of Section 94

of the Municipalities Act exempting them from

payment of any property tax.

4.

Per contra, Sri R.S.Sidhapurkar, learned counsel

for the respondent/City Municipal Council would

submit that the bank, canteen, staff quarters as

also petrol bunk are commercial activities being

carried out by the petitioner and would not come

within the exemption under Section 94 of the Act.

The petitioner would be required to make payment

of taxes as regards building used for commercial

purpose and on these grounds, seeks for dismissal

of the above writ petition. He further submits that

the land in question on which some of other

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buildings

are

built

are

not

owned

by