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Judgment
H.L. Dattu, C.J.—This writ appeal is directed against the orders passed by the learned Single Judge in Writ Petition No.16423 of 2008, dated 1st September, 2008.
By the impugned order, the learned Single Judge has extended the time limit for payment of the first installment of Rs. 22,78,688/- which was payable by the petitioner on or before 28.8.2008.
Petitioner is a Medical College. In this writ petition, it is represented by its Director. It has been assessed to building tax as per Ext.P6 order. The contention of the petitioner before the authorities and also before the State Government was that the whole building of the petitioner is eligible for exemption from payment of the building tax u/s 3(1)(b) of the Building Tax Act, since the petitioner''s building is used for educational purpose.
The State Government by its order, dated 28-4-08 at para 4 and 5 has stated as under:
On verification of the records it is seen that the Hospital building is generating huge income where treatment is given after levying fees. No charitable activities are conducted in the building. From the income and expenditure statement of the college authorities it is seen that the total income for the year ended 31-03-2005 is Rs. 12,71,24,571/-. Out of this hostel income is Rs. 25,20,221/- Library collection is Rs. 1,50,000/-. Income from Jubilee Mission Hospital is Rs. 5,09,00,000/-. In the above circumstances, Government Order that the buildings of jubilee Mission Medical College situated in Chempukavu Village having a total plinth area of 76185.65M2 out of this, area exclusively used for educational purpose consisting of 35,541.97M2 is eligible for exemption from Building Tax u/s 3(1)(b) of the Kerala Building Tax Act, 1975 and the remaining portion having plinth area of 40,643.62M2 used for hospital purpose is not eligible for exemption from building tax u/s 3(1)(b) of the Act.
After disposal of the matter by the State Government, the competent authorities under the Building Tax Act has issued Ext.P11 notice directing the petitioner to pay the building tax in four equal instalments starting from 28-8-2008.
Ext.P6 order and Ext.P11 notice are the subject matter of the writ petition.
The petitioner''s contention before the learned Single Judge was that the entire building is exempted from payment of tax by virtue of Section 3(1)(b) of the Building Tax Act and, therefore, the State Government is not justified in passing the impugned order (Ext.P6 order). This issue requires to be decided at the time of hearing of the petition.
The learned Single Judge has only entertained the writ petition and has not yet disposed of the writ petition. But has not granted any interim order.
The petitioner is not entitled to an order of stay of collection of Building Tax as a matter of right. Mere filing of a writ petition against the order of the State Government by itself is not a ground for granting stay of collection of taxes. Discretion is there for the writ court to grant or not to grant any interim order depending on the facts and circumstances of each case. The learned Single Judge, keeping in view the observations made by the State Government, in the course of its order, that, the Hospital building is generating huge income and the treatment is given only after collecting fees and no charitable activities are conducted by the petitioner has declined to grant any interim order. The conclusion reached cannot be said either arbitrary or erroneous. Therefore, we do not see any error in the orders passed. Accordingly, we reject the writ appeal.
Ordered accordingly.