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High Court of KeralaSingle JudgePetition dismissed

Anna Plastics Major Industrial Estate, Ollur, Thrissur (and 35 others) v. State of Kerala and Thrissur Corporation

Case / Petition Number:WP(C).No. 10693 of 2012 (J)
Neutral Citation::

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A.M. Shaffique
Judgment Date
2015-11-12
Court Decision / Holding
Writ petition dismissed. The court held that Ext. P1 does not exempt the petitioners from taxes or licensing under the Kerala Municipalities Act 1994, and that PepsiCo is not applicable to the Municipalities Act. There is no statutory provision granting tax exemptions in the Municipalities Act, and the petitioner's reliance on PepsiCo is misplaced.
Final Disposition
Petition dismissed

Parties to the Case

Appellants / Petitioners

  • ANNA PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • CHALISSERY CHEMICALS & LUBRICANTS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • UNIVERSAL PETRO CHEMICALS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETRIX
  • EAGLE PRODUCTS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • JYOTHI VESSELS - MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • J & D ENTERPRISES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • J.J. PLASTICS INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • JOMAS INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • PARAMOUNT PLASTICS INDUSTRIES MAJOR INDUSTIRAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • POPULAR PLASTIC INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • POLYMER MOULDERS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • PRATHEEKSHAS SIVASAKTHY, MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • RAJESH KUMAR ELECTROPLATING MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • RAJI PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • SAROMA ENGINEERS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETRIX
  • ST.JOSEPHS ENGINEERS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • MINI JOB WORKS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • BLOW PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • G.R.PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • SREE LAKSHMI ROPES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • SUPREME PLASTICS INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • GOLDEN VIEW PLATING MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP BY ITS PROPRIETORIX
  • BLOW PLAST MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • PETROMER PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PARTNER
  • THREE STAR ELECTRO PLATING WORK MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • MULTI TECH ENGINEERING MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • TWO STAR GOLD COVERING MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • TOOLING ALLIED INDIA MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • SUNSTAR POLYMERS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP.BY ITS PROPRIETOR
  • PAUL AND SONS PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • ANSA PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • BEEPEE GOLD IMITATIONS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP BY ITS PROPRIETOR
  • VIPUL WOOD INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • MOULD TECH MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR
  • MODERN MACHINE MANUFACTURES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER
  • DEVI KRIPA ENGINEERING WORKS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR

Respondents

  • STATE OF KERALA REP. BY THE CHIEF SECRETARY TO GOVERNMENT GOVERNMENT SECRETARIAT THIRUVANANTHURAM - 695 001
  • THRISSUR CORPORATION THRISSUR - 686 661, REPRESENTED BY ITS SECRETARY

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Dinny Thomas
  • • Sri. Albert V. John

Counsels for Respondents

  • • Sri. E.M. Abdul Khader
  • • Sri. K.P. Vijayan
  • • Sri. V.M. Syam Kumar
  • • Smt. Kripa Elizabeth Mathews
  • • Sri. V.N. Haridas

Case Synopsis & Summary

The petitioners, a consortium of industrial units located in the Ollur Industrial Estate, approached the Kerala High Court seeking exemption from the Kerala Municipality Act 1994 and related licensing provisions. They contended that GO RT 591/94/ID dated 5 July 1994 (Exhibit P1) exempted the units within industrial estates from obtaining clearances from local bodies, and they urged the Court to declare that they were not governed by the Kerala Municipality Act 1994 and were not subject to its tax, fee, cess or license demands. They further prayed for a mandamus directing the 2nd respondent not to demand taxes or require licenses under the Act. The Respondents argued that Ext. P1 only exempts local body clearances (e.g., building permits) and does not excuse the units from tax assessments or service taxes within municipal limits, and that there is no statutory provision in the Municipalities Act granting such tax exemptions. The court examined the pleadings, noting that the exemption in Ext. P1 relates to building clearances, not taxation. It distinguished the PepsiCo India Holdings Private Ltd. v. State of Kerala decision, which related to the Kerala Panchayat Raj Act, and held that no tax exemption exists under the Municipalities Act. Consequently, the petition was dismissed for lack of merit, with the court clarifying the scope of Exh. P1 and the limitations of the Petitioner reliefs.

Provisions of Law Cited

Kerala Municipality Act 1994Kerala Municipalities Act 1994Kerala Panchayat Raj Act, 1994 (Section 1(2))

Submissions & Arguments

Contentions of Appellants / Petitioners

Petitioners contended that they fall outside the purview of the Kerala Municipality Act 1994 and should be exempt from local body taxes, cess, fees and licensing, relying on Government Order dated 5 July 1994 (Exhibit P1), which allegedly exempted industrial units in estates from local body clearances. They argued that Exh. P1 eliminates building permits and local clearance, implying tax exemptions; they also cited PepsiCo India Holdings Private Ltd. v. State of Kerala to support their position that such exemptions can be read into the statutory framework.

Contentions of Respondents

The respondents argued that Exh. P1 covers only exemptions from obtaining local clearances, not from tax assessments or service taxes within municipal limits, and that the Municipalities Act provides no provision for tax exemptions. They asserted that PepsiCo is distinguishable because it concerns the Kerala Panchayat Raj Act, not the Municipalities Act, and that there is no statutory basis to exempt the petitioners from taxes or licenses under the Municipalities Act, so the petition should be dismissed.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Pepsico India Holdings Private Ltd. v. State of Kerala2007 (2) KLT 835DistinguishedThe decision relates to the Kerala Panchayat Raj Act, 1994 and not to the Kerala Municipalities Act, 1994; thus it is not applicable to the present case and was distinguished.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT:** ## **THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE** **THURSDAY, THE 12TH DAY OF NOVEMBER 2015/21ST KARTHIKA, 1937** ## **WP(C).No. 10693 of 2012 (J)** **----------------------------** **PETITIONER(S) : --------------------------** **1. ANNA PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **2. CHALISSERY CHEMICALS & LUBRICANTS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **3. UNIVERSAL PETRO CHEMICALS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETRIX.** **4. EAGLE PRODUCTS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **5. JYOTHI VESSELS** - **MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **6. J & D ENTERPRISES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **7. J.J. PLASTICS INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **8. JOMAS INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **9. PARAMOUNT PLASTICS INDUSTRIES MAJOR INDUSTIRAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **...2/-** **WP(C).No. 10693 of 2012 (J) -2-** **10. POPULAR PLASTIC INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **11. POLYMER MOULDERS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **12. PRATHEEKSHAS SIVASAKTHY, MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **13. RAJESH KUMAR ELECTROPLATING MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** ## **14. RAJI PLASTICS** - **MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** ## **15. SAROMA ENGINEERS** - **MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETRIX.** **16. ST.JOSEPHS ENGINEERS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **17. MINI JOB WORKS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **18. BLOW PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **19. G.R.PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **20. SREE LAKSHMI ROPES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **21. SUPREME PLASTICS INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **22. GOLDEN VIEW PLATING MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETORIX.** **...3/-** **WP(C).No. 10693 of 2012 (J) -3-** ## **23. BLOW PLAST** - **MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** ## **24. PETROMER PLASTICS** **MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PARTNER.** **25. THREE STAR ELECTRO PLATING WORK MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** ## **26. MULTI TECH ENGINEERING** - **MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **27. TWO STAR GOLD COVERING MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** ## **28. TOOLING ALLIED INDIA** **MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** ## **29. SUNSTAR POLYMERS** - **MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP.BY ITS PROPRIETOR.** **30. PAUL AND SONS PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **31. ANSA PLASTICS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **32. BEEPEE GOLD IMITATIONS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **33. VIPUL WOOD INDUSTRIES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **34. MOULD TECH MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **35. MODERN MACHINE MANUFACTURES MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS MANAGING PARTNER.** **...4/-** **WP(C).No. 10693 of 2012 (J) -4-** **36. DEVI KRIPA ENGINEERING WORKS MAJOR INDUSTRIAL ESTATE, OLLUR, THRISSUR REP. BY ITS PROPRIETOR.** **BY ADVS.SRI.DINNY THOMAS SRI.ALBERT V. JOHN** ## **RESPONDENT(S) :** **----------------------------** **1. STATE OF KERALA REP. BY THE CHIEF SECRETARY TO GOVERNMENT GOVERNMENT SECRETARIAT THIRUVANANTHAPURAM - 695 001.** ## **2. THRISSUR CORPORATION** **THRISSUR - 686 661, REPRESENTED BY ITS SECRETARY.** ## **R1 BY SR. GOVT. PLEADER SRI.E.M.ABDUL KHADER** **R2 BY ADVS. SRI.K.P.VIJAYAN, SC SRI.V.M.SYAM KUMAR SMT.KRIPA ELIZABETH MATHEWS SRI.V.N.HARIDAS** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12-11-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **Mn** **...5/-** **WP(C).No. 10693 of 2012 (J)** ## **APPENDIX** ## **PETITIONER(S) EXHIBITS :** **----------------------------------------** **EXHIBIT P1. TRUE COPY OF THE RELEVANT PAGES OF GO (RT) NO.591/94/ID DATED 5/7/94.** **EXHIBIT P2. TRUE COPY OF THE CIRCULAR DATED 16.4.2007.** **EXHIBIT P3. TRUE COPY OF THE COMMUNICATION ISSUED BY GOVERNMENT DATED 19.1.04.** **EXHIBIT P4. TRUE COPY OF THE INTERIM ORDER IN WP(C) NO.12816 OF 2009. EXHIBIT P5. TRUE COPY OF THE INTERIM ORDER IN WP(C) NO.10104 OF 2009. EXHIBIT P6. TRUE COPY OF THE INTERIM ORDER IN WP(C) NO.6947 OF 2012.** **RESPONDENTS' EXHIBITS : NIL** **----------------------------------------------------------** **//TRUE COPY//** **P.S. TO JUDGE** **Mn** ## **A.M. SHAFFIQUE, J.** ## ============= W.P. (C) No. 10693 of 2012 =================== Dated this, the 12[th] day of November, 2015 ## **J U D G M E N T** ## Petitioners have approached this Court seeking for the following reliefs; “ _(i) Declare that the petitioner units are not governed by the provisions of the Kerala Municipality Act 1994 and that they are exempted from the provisions of the Kerala Municipalities Act 1994 and the Rules framed there under and that the 2[nd] respondent is not entitled to demand any tax, fee, cess or any other charges and insist on the petitioners for taking any license or to renew any license as per the provisions of the Kerala Municipalities Act 1994 and the rules made thereunder._ _(ii) issue a writ of mandamus or other appropriate writ or order directing the 2[nd] respondent not to demand from the petitioners any tax, fee, cess or any other charges and insist on the petitioners for taking any license or to renew any license as per the provisions of the Kerala Municipalities Act 1994 and the Rules made thereunder.”_ 2. Reliance is placed on Ext.P1 Government Order dated 5/7/1994, which reads as under; W.P(C) No.10693/12 ## -:2:- _“Government Order that the Industrial units located in the Industrial Estates/Development Area/Development Mini Industrial Estate/ a consolidated list of which are appended to this order, shall be exempted from obtaining clearances from local bodies, as per the notifications read as first and second paper above.”_ 3. Ext.P1 apparently is only an exemption granted to the Industrial units located in the Industrial Estates/Development Area/Development Mini Industrial Estate etc. from obtaining clearance from local bodies. In other words, for construction of buildings, they may not be liable to obtain a building permit. However, there is no exemption from payment of tax which is applicable to any building within the Municipal area. In so far as there is no statutory provision which enables exemption being granted for assessment of property tax or service tax etc., in respect of buildings coming within a Municipal area, petitioners are not entitled for the relief as sought for. Under such circumstances, there is no basis for the claim made by the petitioners. Though the petitioners rely upon the judgment in _**Pepsico India Holdings Private Ltd. v. State of Kerala**_ (2007 (2) KLT 835), in the said judgment, what was W.P(C) No.10693/12 ## -:3:- applicable was the Kerala Panchayat Raj Act, 1994. A provision similar to Section 1(2) of the Kerala Panchayat Raj Act, 1994 is not available under the Municipalities Act. Under such circumstances, there is no basis for the above claim and accordingly, this writ petition lacks merit and is dismissed. Sd/- ## **A.M. SHAFFIQUE, JUDGE** Rp 13/11/2015 //True Copy// PS to Judge