Karnataka High Court
M/S. Sarvodaya Education Society vs The State Of Karnataka on 15 June, 2023
Author: R Devdas
Bench: R Devdas
-1-
NC: 2023:KHC:20625
WP No. 6117 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 15TH DAY OF JUNE, 2023
BEFORE
THE HON'BLE MR JUSTICE R DEVDAS
WRIT PETITION NO. 6117 OF 2023 (LB-TAX)
BETWEEN:
M/S. SARVODAYA EDUCATION SOCIETY,
NO.376, 10TH CROSS, 2ND BLOCK,
JAYANAGARA,
BENGALURU - 560 011.
REPRESENTED BY ITS
GENERAL SECRETARY.
REGISTERED UNDER THE MYSORE SOCIETIES
REGISTRATION ACT NO.III OF 1904.
...PETITIONER
(BY SRI. GANESHA K., ADVOCATE)
AND:
1. THE STATE OF KARNATAKA,
Digitally signed DEPARTMENT OF URBAN DEVELOPMENT,
by JUANITA
THEJESWINI M.S.BUILDING, DR.AMBEDKAR ROAD,
Location: HIGH BENGALURU - 560 001.
COURT OF
KARNATAKA REPRESENTED BY ITS
PRINCIPAL SECRETARY.
2. BRUHAT BENGALURU MAHANAGARA PALIKE,
N.R.SQUARE, KARNATAKA,
BENGALURU - 560 002.
REPRESENTED BY ITS COMMISSIONER.
...RESPONDENTS
(BY SRI.NITHYANANDA K.R., AGA FOR R1; SRI.PAWAN KUMAR, ADVOCATE FOR R2) -2- NC: 2023:KHC:20625 WP No. 6117 of 2023 THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARING THAT THE PETITIONER IS NOT LIABLE TO PAY PROPERTY TAX TO THE R2 UNDER SECTION 144 OF 152 OF THE BBMP ACT 2020 MARKED AS ANNEXURE - N AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
ORD`ER R.DEVDAS J., (ORAL):
The petitioner, an educational institution is before this Court aggrieved of the demand notice dated 07.03.2023 raised by the respondent-Bruhat Bengaluru Mahanagara Palike, seeking payment of property tax. The petitioner has also called in question the provisions contained in Section 152(1)(b) of the Bruhat Bengaluru Mahanagara Palike Act, 2020 (hereinafter referred to as the 'BBMP Act' for short); Circular dated 29.03.2021 issued by the second respondent-Commissioner, BBMP etc. -3- NC: 2023:KHC:20625 WP No. 6117 of 2023
2. It appears that the Karnataka Municipal Corporations Act, 1956 which was earlier governing the municipal area including the BBMP had a provision contained in Section 110 of the said Act, granting exemption from payment of property tax to educational institutions which were established for the purpose of education, recognized by the Government or local authority. However, on the enactment of the BBMP Act, 2020, such a provision was discontinued in the similar provision contained in Section 152 of the Act. Nevertheless, when many such institutions filed writ petitions before this Court and interim orders were passed by this Court, the State Government appears to have taken note of the same and amended the provisions contained in Section 152(1)(i)(b) of the BBMP Act, on 10.03.2023 substituting the provision re-introducing similar provisions that were earlier available in the Karnataka Municipal Corporations Act, 1956, to exempt such educational institutions from payment of property tax. In view of the same, all such writ petitions which -4- NC: 2023:KHC:20625 WP No. 6117 of 2023 were pending consideration before this Court were disposed of including the case of the Management Association of Schools, Karnataka and Another Vs. the State of Karnataka and Others in W.P.No.12954/2001 dated 17.04.2023. Learned Counsel for the respondent-BBMP submits that similar orders may be passed in this writ petition taking note of the amendment brought to the BBMP Act.
3. Consequently, this Court proceeds to pass the following order:
i) Writ petition is allowed.
ii) The impugned demand notice dated
07.03.2023 is hereby quashed and set aside.
iii) In view of the amendment brought to
Section 152(1)(i)(b) of BBMP Act, the
Circular which has been issued on
29.03.2021 is also quashed.
Needless to observe that if the petitioner has deposited any amount before the BBMP or in terms of any -5- NC: 2023:KHC:20625 WP No. 6117 of 2023 interim orders that are passed by this Court, the same shall be adjusted to future tax payment due from the petitioner.
Ordered accordingly.
Sd/-
JUDGE rv