LexM/S. LISIE MEDICAL INSTITUTIONS versus THE STATE OF KERALA & ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
[2017] 4 S.C.R. 43
M/S. LISIE MEDICAL INSTITUTIONS
v.
THE STATE OF KERALA & ORS.
(Civil Appeal No. 6799 of 2017)
MAY09,2017
[A. K. SIKRI ;\ND ASHOK BHUSHAN, JJ.]
Kera/a Building Tax Act, 197~:
s. 3(1) Explanation 1 - interpretation of - Property of the
appellant assessed to building tax - Challenged - Single Judge as
well as Division Bench of High Court relying .on S. H. Medical
Centre Hospital case held that the hospital is not liable to be
exempted from the tax - On appeal, held: S. H. Medical Centre
Hospital case has wrongly interpreted Explanation I to s. 3(1) in
not noticing that it contains the word "includes" and not "means"
- Matter is therefore referred to Larger Bench.
Referring the matter to Larger Bench, the Court
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HELD: In *S. H. Medical Ce11tre Hospital case an error in
interpreting Explanation I to Clause 1 of Section 3 of the Kerala
Building Tax Act, 1975 has occurred in not noticing tha{ it contains
the word "includes" and not "means". This error led to holding
that 'charitable purpose' meant only 'relief of the poor and free
medical relief'. Relief to the poor and free medical relief is only
one of the facets of charitable purpose and Explanation simply
clarifies that too be a charitable purpose. However, the inclusive
definition points out that relief to poor and free medical relief is
not exhaustive as to what charitable purpose'would mean. Thus,
in order to find out the true scope of charitable purpose, one will
have to look into the judgments of this Court, even if this very
expression is examined in the context of the Income Tax Act.
The Court disagrees with the opinion of the Division Bench in
S.IL Medical Celltre Hospital case. [Paras 14 and 15) [51-C-F]
*S.H. Medical Centre Hospital v. State of Kera/a (2014)
11 sec 381 - disagreed.
Additional Commissioner of Income Tax, Gujarat v. Surat
A
B
c
D
E
F
G
Art Silk Cloth Manufactures Association, Surat (1980)
H
43
44
SUPREME COURT REPORTS
[2017]4 S.C.R.
A
2 SCC 31: [1980.J 2 SCR 77; Queens Educational
Society v. CIT (2015) 8 SCC 47 : [2015] 3 StR 838 -
referred to.
B
c
(2014) 11 sec 381
[1980] 2 SCR 77
J20f5J 3 SCR 838
Case Law Reference
disagreed
referred to
· referred to
Para5
Para 10
Para 10
CIVIL APPELLATE JURISDICTION:. Civil Appeal No. 6799
of2017.
From the Judgment and Order dated 18.07.2016 of the High Com1
ofKerala at Ernakulam in W. A. No. 1386 of2016.
F. S. Nariman, Sr. Adv, Isaal M. Perumpillil, M. T. George, Jijo
Paul Kallookk Karan, Advs. for the Appellant.
D
V. Giri, Sr. Adv., C. K. Sasi, Manukrishnan G., Advs. for the
Respondents.
The Judgment of the Court was delivered by
A. K. SIKRI, J. 1. This appeal is preferred against the order
_dated 18.07.2016 passed by the Division Bench of the High Court in
E
Writ Appeal No. 1386 of2016 which was filed by the appellant herein
challenging the order of the learned single Judge whereby the writ petition
of the petitioner has been dismissed. We may mention at the outset that
the appellant (M/s. Lisie Medical Institutions) is claiming itself to be a
charitable institution and is, thus, seeks exemption from liability of paying
F
building tax underthe Kerala Building Tax Act, 1975 (for short the' Act')
G
H
.. in respect of its building in Ernakulam, Kerala where it runs the hospital.
2. A brief description of background facts would suffice, which is
as follows:
·
The appellant 'Mis. Usie Medical Institutions' was constituted
under a Registered Trust Deed, executed on 03.04.1990 by the
Archdiocese ofEmakulam, appointing Rev. Msgr. Parackel as the trustee
of the Trust. The appellant-trust is only an instrumentality of its settler,
the Church. His ExceHency Mar Sebastian Adayantharath (Chairman),
Auxiliruy Bishop ofErnakulam -Angamaly Archdiocese, His Excellency
Mar Jose Puthenveettil Auxiliary Bishop of·Ernakulam - Angamaly
M/S; USIE MEDICAL INSTITUTIONS v. THE STATE OF
KERALA & ORS. [A. K. SIKRI, J.]
45
(
Archdiocese, Msgr. Sebastian Vadakkumpadan, Syncellus of the
A
Ernakulam - Angamaly Archdiocese, Rev. Fr. Thomas Vaikathuparambil,
Direptor (Chief Executive Trustee), Rev. Fr. Babu. Kalathil, (Asst.
Executive Trustee), Rev. Fr. Varghese Palatty, (Asst. Executive Trustee),
Rev. Fr. Joshy Puthuva, (Finance Manager),_ Rev. Fr. Sebastian
Kalapurackal, (Director), Sr. Thelma MSJ (Member), Adv. Bobby ' B
Vallamattam (Member), Dr. Babu Palatty (Member), Fr. Anto Chalissery
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