A One Milk Products Pvt. Ltd. Vs State of Kerala (Kerala High Court)
Kerala High Court has affirmed the imposition of triple tax on buildings constructed without proper authorization, dismissing a writ petition filed by A One Milk Products Pvt. Ltd. and its Managing Director. The Court’s decision, delivered in the case of A One Milk Products Pvt. Ltd. Vs. State of Kerala, underscores the critical importance of documentary evidence to substantiate claims of “deemed permit” for construction activities.
The petitioners, a limited company engaged in the dairy milk and related products business since 1999, approached the High Court challenging assessment orders and recovery notices issued under the Kerala Panchayat Raj Act. Their grievance stemmed from the 3rd respondent’s action of assigning “unauthorized numbers” to ten buildings constructed by the petitioners in 2016 and subsequently imposing a tax three times the actual rate. The total amount demanded through revenue recovery proceedings reached Rs. 11,99,646/-.
According to the petitioners, they had initiated construction of these ten buildings in 2016 after submitting appropriate applications for building permits to the Panchayat. They contended that since the 3rd respondent failed to issue the necessary permissions within the statutory period, they acquired a “deemed permission” to commence and continue their construction. This claim of deemed permission, they argued, rendered the subsequent actions of assigning unauthorized numbers and levying triple tax legally unsustainable.
