Kalpatharu Breweries & Distilleries Private Limited Vs State of Karnataka (Karnataka High Court)
Karnataka High Court held that Gram Panchayat has no jurisdiction to impose property tax on properties situated within a notified industrial area governed by the Karnataka Industrial Areas Development Act, 1966 [KIAD Act]. Accordingly, writ petition is allowed.
Facts- The petitioners in these batch of writ petitions have called in question the demand notices issued by respondent – the Gram Panchayat contending that the said notices are without jurisdiction. They rely on the provisions of Section 37 of the Karnataka Industrial Areas Development Act, 1966 r.w.s. 47, which vests exclusive authority in the KIADB for planning, development, and maintenance of industrial areas.
The petitioners specifically assert that Section 37 stipulates that the provisions of the Karnataka Municipalities Act or the Panchayat Raj Act can apply to an industrial area only upon its withdrawal from the purview of the KIADB by way of an express notification issued by the State Government. It is submitted that, in the present batch of petitions, no such notification has been issued. The petitioners also place reliance on a letter issued by the Chief Executive Officer of respondent – KIADB addressed to the State Government, wherein it is stated that the power to collect property tax on land and buildings and levy license fees within KIADB industrial areas exclusively vests with respondent-KIADB. On that basis, the petitioners submit that the Gram Panchayat lacks the jurisdiction to issue the impugned demand notices.
