Bombay High Court
The Maha. Institute Of Rural Dev. Akola ... vs The State Of Maharashtra, Thr. ... on 20 February, 2024
Author: Nitin W. Sambre
Bench: Nitin W. Sambre
2024:BHC-NAG:2237-DB
1 954wp6967.2022..odt
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH AT NAGPUR
WRIT PETITION NO. 6967 OF 2022
1. The Maharashtra Institute of Rural
Development, Akola Through its
Secretary Mrs. Surekha Sudhakar Gangane,
"Shivashray", Bhagwat Wadi,
Ramdas Peth, Akola,
Tahsil and District Akola
2. National School of Nursing,
Akola, through its Principal,
Mr. Ritesh Ajay Varma,
Aged 35 yrs, occ. Service,
R/o. Surya City, Malkapur,
Tahsil and District Akola ...... PETITIONERS
...V E R S U S...
1. The State of Maharashtra,
through its Secretary, Urban
Development Department,
Mantralaya, Mumbai 32
2. The Akola Municipal Corporation,
through its Commissioner, Akola,
Tahsil and District Akola .....RESPONDENTS
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Mr. U.J. Deshpande, Advocate for the petitioners,
Mr. A.A. Madiwale, AGP for respondent No. 1/State,
Mr. S.V. Sohoni, Advocate for Respondent No. 2.
---------------------------------------------------------------------------------------
CORAM:- NITIN W. SAMBRE & ABHAY J. MANTRI, JJ.
DATE : 20.02.2024
JUDGMENT (Per: Abhay J. Mantri, J.)
2 954wp6967.2022..odt Rule. Rule made returnable forthwith. Heard finally with the consent of the parties.
2. Petitioners have challenged the issuance of Demand Notice dated 25.04.2022, by respondent No. 2 - Akola Municipal Corporation being illegal and contrary to the provisions of Section 132(1)(b) of the Maharashtra Municipal Corporation Act, 1949 (hereinafter referred to as "the Act").
3. Petitioner No. 1 is a Public Charitable Trust and its main object is to impart education. Petitioner No.1 runs petitioner No. 2 college in the name and style of "National School of Nursing."
4. Respondent No. 2 - the Corporation has issued demand notices dated 21.06.2021 and 25.04.2022 for general/property tax for the period 1.4.2022 to 31.3.2023 without considering the provisions of Section 132(1)(b)of the Act, and therefore, this petition.
5. Learned advocate for the petitioners vehemently argued that petitioner No. 1 is a Public Charitable Trust, therefore, in view of the provisions of Section 132(1)(b) of the Act is exempted from 3 954wp6967.2022..odt paying general taxes, and the said issue is also covered by the judgment of the Hon'ble Supreme Court in the case of Municipal Corporation of Delhi Vs. Children Book Trust [(1992)3 SCC 390] and in Writ Petition No. 4383/2021 (Jyoti Shikshan Prasarak Mandal, Akola Vs. State of Maharashtra and another ), and therefore, he has prayed for quashing the impugned demand notice.
Per contra, the learned advocate for respondent No. 2 has contended that issuance of Demand Notices is just, legal, and proper, therefore, no interference is required in the writ jurisdiction, hence, he has prayed for dismissal of the petition.
6. Having heard the rival contentions, we would like to reproduce Section 132(1)(b) of the Act, which reads thus:
"132(1)- The general tax shall be levied in respect of all buildings and lands in the City except,--
(b) - buildings and lands or portions thereof solely occupied and used for public worship or for a public charitable purpose."
A perusal of the record and more particularly, the amended bylaws of the Trust, it seems that petitioner No.1 is the Public Trust having its aim and object to run and manage schools and colleges imparting education as a public charitable activity, and therefore, in view of provisions of Section 132(1)(b) of the Act, 4 954wp6967.2022..odt petitioners are exempted from paying general/property taxes.
7. We have gone through the citations, supra. It reveals from the record that the short issue that arose in the present petition is covered by the judgments in Children Book Trust and Jyoti Shikshan Prasarak Mandal, Akola (supra), therefore, we find substance in the contentions of the learned advocate for the petitioners in that regard.
8. Furthermore, it seems that petitioner no.1 had submitted its reply to the demand notice. That being so, before enforcing the tax demand, it would be necessary for respondent No. 2 Corporation to analyse the balance sheet and bylaws of the petitioner No.1 Trust in question in the light of the judgment in Children Book Trust. (supra)
9. In view of the above discussion and the law laid down in the judgment, we deem it appropriate to dispose of the petition by issuing directions, which would serve the interest of justice.:-
(i) The impugned Demand Notices dated
21.06.2021 and 25.4.2022 for payment of
general/property tax issued by respondent No. 2 -
5 954wp6967.2022..odt Corporation shall not be enforced until it considers the representation/reply submitted by the petitioner Trust, based on the judgment in Children Book Trust and determination of the liability of petitioner to pay the general tax;
(ii) Respondent No. 2 - the Corporation is free to issue fresh show cause notice to the petitioners demanding the general tax and grant an opportunity to the Trust to put forth its stand in accordance with the law. After considering all relevant documents including the balance sheet and bylaws of the Trust, the Corporation would be free to take a decision about the liability of the Trust to pay general tax. To that extent, the impugned demand notices issued demanding general tax shall not be enforced till such decision is taken by the Corporation;
(iii) The petitioners are free to respond to the show cause notices, if issued by the Corporation by filing an additional reply, if necessary;
(iv) It is clarified that insofar as the demand of other taxes is concerned, it is open for the Corporation to enforce such demand and the petitioners would be free to avail the statutory remedy provided under the Act if they are aggrieved by such demand;
(v) The entire exercise be completed within four months 6 954wp6967.2022..odt from today on its own merits and in accordance with law;
(vi) With these directions, the writ petition is disposed of. No costs.
(ABHAY J. MANTRI, J.) (NITIN W. SAMBRE, J.) R. Belkhede, Signed by: Mr. R. S. Belkhede Personal Assistant Designation: PA To Honourable Judge Date: 26/02/2024 18:39:37