## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`**
## **`PRESENT`**
## **`THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH`**
## **`THURSDAY, THE 23`** `[RD]` **`DAY OF MAY 2024 / 2ND JYAISHTA, 1946`**
## **`WP(C) NO. 10051 OF 2024`**
## **`PETITIONER:`**
```
AMENSCO MEDICAL TECHNOLOGIES PRIVATE LIMITED AGED 46
YEARS BLOCK NO 32, GHAT ROAD, KINFRA SIP NELLADU
MUVATTUPUZHA ,REPRESENTED BY ITS MANAGING DIRECTOR,
PIN - 686669
BY ADVS. L.RAM MOHAN M.AUBREY ABRAHAM ISAAC
```
## **`RESPONDENTS:`**
- **`1 THE MAZHUVANNOOR GRAMA PANCHAYATH REPRESENTED BY ITS SECRETARY MAZHUVANNOOR,AIRAPURAM.P.O,AIRAPURAM, PIN - 683541`**
- **`2 STATE OF KERALA REPRESENTED BY ITS SECRETARY ,DEPARTMENT OF INDUSTRIES THIRUVANANTHAPURAM, PIN - 695001 BY ADV ABRAHAM P.MEACHINKARA`**
## **`SMT. JASMIN M.M.-GP`**
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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
23.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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WP(C) NO. 10051 OF 2024
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## **DINESH KUMAR SINGH, J.**
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## **W.P.(C) No. 10051 of 2024**
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Dated this the 23[rd] day of May, 2024
## **JUDGMENT**
The present writ petition has been filed for the following reliefs;
i. Issue a writ certiorari or any other appropriate writ, direction or order call for the records leading to the issuance of Exhibits P3 to P5 and quash the same in the light of Exhibits P1 and P2.
ii. Declare that the 1[st] respondent panchayat is having no jurisdiction to demand any kind of fee or taxes from petitioner company and is precluded from taking any action against the petitioner situated in a notified company being industrial area by virtue Section 1(2) of the Kerala Panchayat Raj Act and Section 6 of Single window Act and in the light of Exhibits P1 and P7 also.
iii. Production of the English translation of vernacular documents may be dispensed with.
iv. Grant such other relief which deems fit
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and proper in the interest of justice.
v. Grant the cost of this writ petition.
2. The learned Counsel for the petitioner submits that the issue involved in this writ petition is covered by Exhibit P7 Judgment of this Court in W.P.(C) No. 3603 of 2016 dated 01.07.2022. Paragraph Nos. 6, 7, 8, 9 and 10 of the said Judgment on reproduction reads as under;
“ 6. Respective counsel have advanced their arguments in accordance with the contentions recorded above. The sole question to be considered is whether the Municipality is entitled to levy property tax against the petitioner. Before going to the provisions of law, it would be worthwhile to refer to Ext.P8 order passed by the State Government dated 5.7.1994 exempting the industrial establishments from obtaining licenses of the local bodies within the industrial area functioning declared by the Government. The order clearly specifies that the industrial units located in the Industrial Estates/Development Area/Mini Industrial Estate/a consolidated list of which are appended to the order,shall be exempted from obtaining clearances from local bodies as per notifications dated 6.8.92 and 6.5.92. The appendix annexed to Ext.P8 Government Order would clearly show that in Ernakulam District Kalamassery Industrial Estate
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is declared as an industrial estate by the State Government. Going by the Government Order, it is clear that even prior to the introduction of the Kerala Municipality Act, 1994 with effect from 30th May of 1994, the Government have exempted industrial establishments from obtaining clearances from local bodies. Anyhow, Section 450 of Act 1994 is an enabling provision granting exemption to the industrial establishments functioning within the notified industrial area. From the provisions of Section 448 of Act 1994 it is clear that license is required for the construction of industry, factory or other workplace and to use steam power or any other power therein or to install other machineries.
7. Section 450 of Act 1994 reads thus: 450.
Exemption. - Notwithstanding anything contained in Section 448 no permission of the Municipality shall be required for the installation of the following machinery or manufacturing units or Industrial units, as the case may be, namely:—
(a) Electrical and non-electrical appliances and machinery intended to be used for domestic or personal purposes;
(b) Electrical and non-electrical appliances installed for agricultural purposes;
(c) Static transformer stations, condenser stations and rectifier stations which will not require regular attention;
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(d) portable drilling machines and portable machines used for construction purposes like concrete mixers;
(e) a mechanical device installed at workshop or workplace attached to educational institution or for scientific purposes
(f) mechanical devices introduced by the Kerala State Electricity Board for generation and transmission of electricity;
(g) installations of the Kerala Water Authority for Water Supply and sewerage;
(h) Industrial units, certified by the Industries Department of the Government or by the Kerala State Pollution Control Board as non-polluting industry and with machinery having capacity of less than five horse power;
(i) Industrial units in the area declared by the Government or the Government controlled agency as an Industrial Estate, Industrial Development Area, Industrial Development Plot, Industrial Growth Centre, Export Processing Zone or Industrial Park:
(j) Industrial units certified by the Kerala State Pollution Control Board as Green and White Category.
Provided that the owner of any industrial unit specified under item (h) and (i) shall register the unit in the Municipality by remitting the prescribed fee.
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8. I notice that as per Act 14/2018 Section 450 is amended by incorporating Entry (j) by including industrial units certified by the Kerala State Pollution Control Board as Green and White category and made other consequential amendments also to deal with the requirements contained under Section 450.
9. On a proper appreciation of the said provision, it is clear that the establishments in any notified industrial area enjoy a statutory exemption from securing clearances from the local bodies. So also, the Kerala Industrial Single Window Clearance Board and Industrial Township Area Development Act, 1999 was introduced on and with effect from the year 1999. Section 6 of said Act, 1999 is relevant to the context, which reads thus:
“6. Exemption from licenses etc. - Notwithstanding anything contained in any law for the time being in force all industrial undertakings being established or proposed to be established in industrial area shall be exempted from obtaining permits from Municipalities or Grama Panchayats, Town Planning Department or Development Authorities for construction of buildings for starting an industrial undertaking.”
10. Therefore, on a conjoint reading of Ext.P8 Government order, the provisions of law deliberated above and the submissions made by the State in its counter affidavit, it is clear
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that the Panchayat was not right in levying property tax against the petitioner as per Ext.P10 and demanding the same as per Ext.P11 and other consequential notices. Taking into account the said legal and factual aspects, I am of the undoubted opinion that when a statute exempts or grant benefits to industrial establishments located within the notified industrial areas, the local body is precluded from taking any action on the basis of the provisions of law applicable to other industrial establishments. I am also of the view that exemption is granted by the statute as well as the Government in order to promote industries within the State and to facilitate an easy mechanism for an industrialist to start the establishments without being saddled by the intricacies contained under various statutes, by resorting to the single window clearance methodology provided under Act 1999. However, learned counsel for the Municipality submitted that the Government Orders as well as the starting of the industrial units in the industrial estates are not informed by the respective statutory authority to the Municipality, which is only creating the situation like the present one and therefore, there may be a direction to the State Government and the District Industries Centre to inform the Municipality whenever an industrial establishment is started. In my considered opinion, when a notification/order
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is published by the Government in the gazette and when provisions are made under different statutes, all are presumed to know the law and therefore, there is no much force in the said contention advanced. Anyhow, since such a contention is advanced by the Municipality, it is for the State Government and its officials to consider as to whether any intimation is to be given to the local bodies in regard to the discussed aspects.
Upshot of the above discussion is that the writ petition is allowed and Ext.P10 order levying property tax on the petitioner, Ext.P11 order demanding the same and any other consequential demands to recover the property tax would stand quashed.”
I have perused the above Judgment. This Court in its Judgment dated 30.11.2023 in W.P.(C) No. 33694 of 2022 having considering the provisions of the Kerala Single Window Clearance Board and Industrial Township Development Act, 1999 that unless the Government notifies an areas as industrial township area and constitute an industrial township authority, jurisdiction of the concerned Municipality/Corporation or the Panchayat would extent to the industrial area. Admittedly, the Government has not issued such notification for constitution of industrial township authority
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and, therefore, I find no substance in this writ petition. The authority of the concerned Municipality or the Panchayat will extend to the industrial area in which the industrial township has not been notified for the purposes of imposition of property tax as well as for providing municipal facilities like roads, water, sewerage etc. and thus the present writ petition stands dismissed. This issue is also covered by the decision of this Court dated 30.11.2023 in W.P.
(C) No. 33694 of 2022.
**Sd/-**
## **DINESH KUMAR SINGH**
**JUDGE**
AP
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## **`APPENDIX OF WP(C) 10051/2024`**
## **`PETITIONER EXHIBITS`**
```
Exhibit P1TRUE COPY OF THE GO; RT NO 766/2001/ID DATED
24/8/01
Exhibit P2TRUE COPY OF THE LETTER DATED 11/8/09 ISSUED BY
KINFRA
Exhibit P3TRUE COPY OF THE NOTICE DATED 23 /2/ 2024 DEMANDING
AN AMOUNT OF 66,023 ₹
Exhibit P4TRUE COPY OF THE NOTICE DATED 23/2/ 2024 DEMANDING
AN AMOUNT OF 92,874 ₹
Exhibit P5TRUE COPY OF THE DEMAND NOTICES DATED 23/2/24
DEMANDING AN AMOUNT OF RS.24358
Exhibit P6TRUE COPY OF THE REPLY DATED 6/3/24 SUBMITTED BY
THE PETITIONER AND ITS ACKNOWLEDGMENT
Exhibit P7TRUE COPY OF THE JUDGMENT DATED 1/7/22 IN WRIT
PETITION CIVIL NO 3603/16
```
