Hindustan Bible Institute & v. The State Of Tamil Nadu,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 11.12.2020
CORAM
THE HON'BLE MR. JUSTICE P.D. AUDIKESAVALU W.P. No. 28624 of 2015 and M.P. No. 1 of 2015 Hindustan Bible Institute & College, A Society registered under the Tamil Nadu Society's Registration Act, Rep. by Secretary, No. 86-89, Medavakkam Tank Road, Kilpauk, Chennai - 600 010.
... Petitioner -vs1. The State of Tamil Nadu, Rep. by the Under Secretary, Revenue Department, Fort St. George, Chennai - 600 009.
2. The Assistant Commissioner of Urban Land Tax, No. 846, E.V.R. Road, Tondiarpet, Chennai - 600 029.
3. The Special Tahsildar (Urban Land Tax), Purasawalkam Taluk, Chennai - 600 003.
... Respondents Prayer:- Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari, calling for the proceedings of the impugned notice of the Third Respondent in Form No. 6 under Rule 5 dated 07.07.2015 and quash the same.
For Petitioner :
Mr. George Graham for M/s. Devadason and Sagar For Respondents:
Mr. N.Inbanathan, Additional Government Pleader
O R D E R
(through video conference) Heard Mr. George Graham, Learned Counsel appearing for the Petitioner and Mr. N.Inbanathan, Learned Additional Government Pleader appearing for the Respondents and perused the materials placed on record, apart from the pleadings of the parties. 2.
The Writ Petition challenges the demand notice dated 07.07.2015 issued by the Third Respondent requiring the Petitioner to pay urban land tax for the period from fasali 1401 to 1425 under the provisions of the Tamil Nadu Urban Land Tax Act, 1966 (hereinafter referred to as the 'TNULT Act' for short). 3.
The grievance sought to be ventilated by the Petitioner in this Writ Petition is that the property of the Petitioner for which urban land tax under the TNULT Act is claimed by the Third Respondent is used for educational purpose, which is exempted under Section 29(h) of the TNULT Act.
4.
It is brought to notice by the Learned Counsel for the Petitioner that the Respondents had earlier made similar claims for urban land tax from the Petitioner, which had been challenged before this Court in the Writ Petitions in W.P. Nos. 3868 to 3871 of 1970, W.P. No. 1423 of 1982, W.P. No. 3512 of 1983 and W.P. No. 14252 of 1994 and this Court by orders dated 25.04.1973, 02.02.1990, 27.06.1991 and 10.08.2001 respectively had set aside those demands and had directed the objections of the Petitioner to the considered and pass orders. In furtherance thereto, the Second Respondent had fixed enquiry at 11.00 a.m. on 09.03.2015, which was served on the Petitioner at 4.00 p.m. on that day and the Petitioner sent letter dated 10.03.2015 explaining the inability to attend that enquiry for that reason. However, the Third Respondent by impugned demand notice has proceeded to levy urban land tax without reference to the nature of land and its use for educational purpose under the provisions of the TNULT Act.
5.
Though the Third Respondent has filed Counter-Affidavit dated 11.11.2015, the explanation made by the Petitioner for the inability to attend the enquiry has not been traversed. That apart, there is nothing to show how the Third Respondent had arrived at the conclusion that property was not used for educational purpose as required by this Court in the earlier Writ Petitions before making the impugned demand for urban land tax from the Petitioner. Having regard to the fact that the Second Respondent issued notice for enquiry but it had not been served on the Petitioner in time, it must be held that the Petitioner has been deprived of opportunity of hearing to explain its position, which vitiates the decision-making
process. In such circumstances, the impugned demand notice dated 07.07.2015 issued by the Third Respondent, shall stand set aside and the matter remitted for fresh consideration. 6.
In order to expedite the proceedings, this Court during the earlier hearing on 29.10.2020 had passed the following selfexplanatory order:- "
Having due regard to the claim of the Petitioner that the property of the Petitioner, which is an Educational Institution is exempted from levy of urban land tax under Section 29(h) of the Urban Land Tax Act, 1966, the Third Respondent shall conduct inspection of that property, take measurements and identify the portions which are being used for educational purpose, the portions which are lying vacant, and the portions which are constructed and not being used for any educational purpose, and file a report before this Court, by 27.11.2020.
Post the matter under the caption 'Urban Land Tax cases' after four weeks."
Learned Additional Government Pleader appearing for the Respondents has produced the field inspection report dated 10.11.2020 from the Second Respondent, which reads as follows:- "
Rc.No. A2/2310/1995 Field Inspection Report Tvl. Hindustan Bible Institute & College owns 102 Grounds 2100 Sq.ft., of land in Block 54 of Purasaiwakkam Village, Chennai District. The lands were assessed under Tamilnadu Urban Land Tax Act, 1966 Amendment Act, 1991 with effect from F1401. The assessment details are mentioned below:- Assessment details:- Village : Purasaiwakkam Block:- 54 Sl .
No .
T.S.No .
Extent G-Sqft.
Assess ed Extent G-Sqft Tax Amt.
Rs.
Cas e No.
Name of the Assessee 3166/1 9-2242 7-2242 3174 Hindustan Bible Society Educational Institute 3166/3 2-1232 0-1232 Hindustan Bible Society Educational Institute 3166/4 1-0606 NIL - - Below 2 grounds not assessed 3166/5 1-0388 NIL - - Below 2 grounds not assessed
Sl .
No .
T.S.No .
Extent G-Sqft.
Assess ed Extent G-Sqft Tax Amt.
Rs.
Cas e No.
Name of the Assessee 3166/6 5-0187 3-0187 1231 Hindustan Bible Society Educational Institute 3166/7 5-1174 3-1174 1396 Hindustan Bible Society Educational Institute 3166/8 2-1301 0-1301 Hindustan Bible Society Educational Institute 3166/9 3-2320 1-2323 Hindustan Bible Society Educational Institute 3166/1 5-0749 3-0749 1325 Hindustan Bible Society Educational Institute 10 3166/1 4-0343 2-0343 Hindustan Bible Society Educational Institute 11 3166/1 4-0035 2-0035 Hindustan Bible Society Educational Institute 12 3166/1 4-1951 2-1951 Hindustan Bible Society Educational Institute 13 3166/1 5-0925 3-0925 1354 Hindustan Bible Society Educational Institute 14 3166/1 4-2198 2-2198 Hindustan Bible Society Educational Institute 15 3167/2 42-0849 40Hindustan Bible Society Educational Institute 102The land was jointly inspected by the Assistant Commissioner (ULT), Tondiarpet & Deputy Tahsildar, Purasaiwakkam Taluk along with field staffs on 05.11.2020. The status report are as follows:- Sl .
No .
T.S.No.
Extent GSq.ft.
Buildi ng No.
in Sketch Present Status of land Extent of Buildi ng GSq.ft.
Extent of vacant land and Road GSq.ft.
3166/1 9-2242 Major portion of lands in three survey numbers are covered by office admin building and reception hall (Ground+one floor). A small portion of land is utilized as a vegetable garden. In this field there are 3 Coconut trees, 2 small teak trees & 2 rain trees available.
Remaining portion of the land is vacant.
3-1436 123166/8 2-1301 3166/9 3-2320 Sub 163166/3 2-1232 11 & There are two buildings (Ground + 2 floor) in which Dining hall & Faculty Quarters are located.
3-1712 1-0514 3166/4 1-0606 3166-5 1-0388 Sub 4-2226 3166/6 5-0187 - Vacant.
Part of the portion of land was utilized as car parking.
0-0187 5-0000 3166/7 5-1174 - Vacant.
Entire portion of land was utilized as volleyball & Badminton Court - 5-1174 3166/10 5-0749 - Vacant.
There are 5 coconut trees in this field.
- 5-0749
3166/11 4-0343 In both survey numbers there is one Building (Ground + 3 floor). This building is used as men hostel & training centre, water sump. There are few coconut trees also in this field.
3-0490 4-2288 3166/12 4-0035 Sub 8-0378 3166/13 4-1951 In both survey numbers there is one Building (Ground + 2 floor).
It is utilized as Principal room, Class room & Library. There are few coconut trees also in this field.
4-1394 5-1482 3166/14 5-0925 Sub 103166/15 4-2198 16 & In this field there is Generator Room in sqft, unused toilets in 160 sqft.
and part is used as two wheeler parking.
Remaining portion of lands are kept as vacant.
0-1288 4-0910 3167/2 42In the entrance of the Institute, watchmen room is located.
In the northern side, there are two buildings namely, 1131-
1.
Dr.Gupta Primary School (Private School) (Ground + 3 floor) and
2. Murchison Block (Ground + one floor) is utilized as Labour Quarters.
In the western side of this field there are few building namely,
1. Women's Hostel (ground + floor).
2. Kinder Care Building
3. Labour Quarters (Ground + one floor)
4. Unused Building (Ground + 2 floor)
5. Kinder's Chapel
6. Building (Rest Room)
7. Staff Quarters (Ground + 1 floor) 8.
Faculty Quarters (Ground + 2 floor) One bore well is available in this field. Remaining portion of lands is kept as vacant.
Also there are few coconut trees, few Ashoka trees, few Mango trees, few rain trees in this field.
Extent 1022676-
ABSTRACT Sl.No .
Details GrSq.ft.
1.
Buildings Constructed Area 26-1706 2.
Volleyball & Badminton Court 05-1174 3.
Vacant Area 46-1020 4.
Extent used as road by the Hindustan Bible Society for their own purpose 24-2100 102At this juncture, Section 29(h) of the TNULT Act in terms of which the Petitioner claims exemption from urban land tax, is extracted below:- "29. Exemptions:- Nothing in this Act shall apply to- ....
(h) any urban land used by schools, colleges or universities for purposes directly connected with education, but no including any urban land owned by such educational institutions and - (i) which is vacant, or (ii) in which buildings from which income is derived have been constructed.
Explanation I:- For the purposes of this clause, schools or colleges shall mean only such schools or colleges which are educational institutions recognised either by the Government or by any University, as the case may be.
Explanation II:- For the removal of doubts, it is hereby declared that the urban land on which schools, colleges or universities or staff quarters or hostels or other buildings used for the welfare of the students, have been constructed, or used as playgrounds attached to such schools, colleges or universities, shall be deemed to be urban land used for the purposes directly connected with education." On a conspectus of the said statutory provisions, it could be inferred that in order to have the benefit of exemption for urban land tax, the Petitioner would have to satisfy the following conditions:-
(i) The schools or colleges should have been recognized either by the Government or by any University;
(ii) The portions of land in which the schools, colleges or universities or staff quarters or other buildings used for the welfare of the students, which have been constructed or used as playgrounds attached to such schools, colleges or universities, shall be deemed to be urban land used for the purpose directly connected to education;
(iii)The portions of land owned by the educational institution, which are vacant and is used for any educational purpose shall be deemed to be urban land used for the purpose directly connected to education; and (iv) The portions of land owned by the educational institution in which buildings are constructed should not be used for the purpose of deriving income.
It is only when the aforesaid conditions are satisfied that the Petitioner would be eligible for exemption of urban land tax for its prperty under the TNULT Act to that extent and in respect of portions which does not satisfy the said conditions, there has to be levy of urban land tax under the TNULT Act. 7.
As already stated, the Second Respondent has now conducted an inspection of the entire property and has filed a report on spot inspection of the nature of use of the various portions of land for which urban land tax is sought to be levied. Learned Counsel for the Petitioner has also acknowledged the receipt of the copy of that report today. It is incumbent upon the Petitioner to state the correctness of the facts as recorded therein and place his objections, if any, in that regard before the Second Respondent by 21.01.2021. The Second Respondent shall thereafter conduct enquiry at 11.30 a.m. on 28.01.2021 on which date the authorized representatives of the Petitioner shall appear in person to substantiate their contentions for the claim for exemption of urban land tax with supporting materials.
If the Second Respondent is not in a position to take up the matter for hearing on that date, he shall inform to all parties concerned of the adjourned date of hearing in the prescribed manner. The Second Respondent, after affording full opportunity of personal hearing to the Petitioner following the prescribed procedure in consonance with the principles of natural justice, shall deal with each of the contentions raised and pass reasoned orders on merits and in accordance with law and communicate the decision taken to the Petitioner under written acknowledgment and report of such compliance shall be filed by 31.03.2021 before the Registrar (Judicial) of this Court.
In the result, the Writ Petition is disposed on the aforesaid terms.
Consequently, the connected Miscellaneous Petition is closed. No costs.
Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar vjt To
1. The State of Tamil Nadu, Rep. by the Under Secretary, Revenue Department, Fort St. George, Chennai - 600 009.
2. The Assistant Commissioner of Urban Land Tax, No. 846, E.V.R. Road, Tondiarpet, Chennai - 600 029.
3. The Special Tahsildar (Urban Land Tax), Purasawalkam Taluk, Chennai - 600 003.
Copy to The Registrar (Judicial), Madras High Court, Chennai - 600 104.
+1cc to Mr.Devadason & Sagar, Advocate, S.R.No. 40560 +1cc to the Government Pleader, S.R.No. 40710 W.P. No. 28624 of 2015 SR II(CO) GN(07/01/2021)