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TMI Blog1996 (9) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... Institute of Medical Sciences and Research and PSC Hospitals. 3. W.P. No. 13190 of 1992 relates to assessment in 9029 dated 24-4-1992 pertaining to hospital buildings. W.P. No. 13191 of 1992 relates to Assessment No. 9815 dated 24.4.1992 pertaining to vacant land, whereas W.P. No. 13192 of 1992 is in respect of Assessment No. 9031 dated 24.4.1992 in respect of hospital building. W.P. No. 13193 of 1992 is in respect of Assessment No. 9814 dated 24.4.1992 in respect of another vacant land and W.P. No. 13194 of 1992 pertains to Assessment No. 9815 dated 244.1992 in respect of College building. 4. The necessary facts for the disposal of these writ petitions can be gathered from the affidavit filed by the petitioner in all these writ petitions. 5. One C.R. Swaminathan. Chief Executive of the petitioner Trust has filed affidavits in support of the above writ petitions. In the said affidavit, he has stated that the petitioner is a Trust administered under the Scheme of Administration framed in O.S. No. 135 of 1945. It had established several educational institutions since 1926. The institutions so established by the petitioner Trust include Schools, Colleges, including that of PS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itals are entitled to exemption under Section 123 of Coimbatore Municipal Corporation Act. He has also pointed out that the assessment made by the respondent with reference to the buildings used for Medical College and Hospital appears to have been made at par with commercial buildings in the City which was solely unsustainable. A reply was received from the respondent on 28.5.1992 stating that if the petitioner is aggrieved by the levy of property tax they could challenge the same by way of appeal before the Tribunal after paying the tax in question. Following the said communication, the respondent. Corporation has also sent demands demanding the property tax in respect of the buildings used for the Medical College and Hospitals. 8. The petitioner raised various contentions in his affidavits. The first contention was that the buildings in question used for housing the Medical College and PSG Hospitals are entitled of statutory exemption as they would fall within the purview of Section 123 of the Coimbatore City Municipal Corporation Act. In any event, the buildings used for PSG Hospitals would quality for statutory exemption from the levy of property tax in terms of Section 123 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is collecting rent from the occupants and as such, they are not entitled for exemption as claimed by them. Originally, educational institutions were exempted under the provisions of the District Municipal Act from payment of property tax. But. such exemption is not available under the Coimbatore City Municipal Corporation Act for educational institutions. The petitioner is liable to pay property tax even for vacant land. Since the property was escaped from taxation, the Corporation has assessed the same under the provisions of Section 168 of the City Municipal Corporation Act. He has denied the exemption for the charitable hospitals under Section 123(1) of the Act. According to him. the assessment made by the respondent is well within their powers and it is in accordance with the Corporation Act. The building was taxed from 1.4.1989. and the tax is payable for the period from 1.4.1989 to 30.9.1989 and the assessment having being made on 23.4.1989 will be within the time and, it is therefore incorrect to state that the demand is contrary to Section 168 of the Act. 13. Since the hospital is collecting rent from the occupants of the rooms, the claims of the petitioner for exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es but not including residential quarters attached thereto. Rest of the things are not necessary for the purpose of this case. 16. In Sub-section (c) of Section 123 of the Act. buildings used for educational purpose including hostels attached thereto and places used for the charitable purpose has been substituted only by Act 42 of 1994. Placing reliance on those provisions, learned counsel for the petitioner submitted that in view of Section 123(e) of the Act. the hospital being a charitable hospital, it is exempted from paying property tax. In this connection, he has placed reliance on a decision of a Division Bench of this Court in S.N.R. Sons Charitable Trust, Coimbatore v. The Commissioner, Coimbatore City Municipal Corporation, Coimbatore. 1993 W.L.R. 769 and invited my attention to the following portion : On a consideration of the provisions of the Coimbatore City Municipal Corporation Act, it is seen that property tax is leviable on annual value and the annual rent, on the basis of letting from month to month or year to year. The exemption is made available with reference to the levy of property tax on the basis of annual value determined on gross annual rent eith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ind half of 1989-90 will be within three years and the assessment prior to that will be barred. He took me to Section 168 of the Act which reads as follows :- Power to assess in case of escape from assessment. Notwithstanding anything to the contrary contained in this Act or the rules made thereunder, if for any reason any person liable to pay any of the taxes or fees leviable under this Chapter has escaped assessment in any half-year or year or has been assessed in any half-year or year at a rate lower than the rate at which he is assessable, or in the case of property tax has not been duly assessed in any half-year or year consequent on the building or land concerned having escaped proper determination of its annual value, the Commissioner may, at any time within three years from the date on which such person should have been assessed, serve on such person a notice assessing him to the tax or fee due and demanding payment thereof within fifteen days from the date of such service, and the provisions of this Act and the rules made thereunder shall so far as may be apply as if the assessment was made in the half year or year to which the tax or fee relates . 19. His other con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into those questions in these writ petitions. According to the learned counsel, no exemption is available under the Act for educational institutions, charitable hospitals, dispensaries, collecting rent from the occupants are liable to pay property tax. Sine the property tax escaped from taxation, the Corporation has assumed the same under the provisions of Section 168 of the Act. He further pointed out that since the petitioner has not issued notice as per Sections 128 and 129 of the Act regarding construction or reconstruction of building, he is not entitled to have the benefit of Section 168 of the Act. As per the provisions of Section 122 and 123 of the Act, property tax has been assessed and there is no illegality and hence, he asked this Court to dismiss these writ petitions. 23. Now let me examine the rival contentions. This Court in the decision in S.N.R. Sons Charitable Trust, Coimbatore v. The Commissioner, Coimbatore City Municipal Corporation, Coimbatore. 1993 W.L.R. 769, has clearly held that payments made by the patients to the hospital by way of hospital charges cannot be equated to 'rent' as contemplated under the provisions of the Act and the denial of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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