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Kerala: Top court upholds HC order exempting nun accommodations, hostels from paying building tax

Under Section 3(1)(b) of the Act, buildings that are used principally for religious, charitable or educational purposes, or as factories or workshops, are exempted from building tax.

By: Express News Service | New Delhi |
March 3, 2021 5:05:09 am
Supreme Court of India

The Supreme Court Tuesday upheld a Kerala High Court ruling which held that residential accommodation for nuns and hostels run by colleges for their students will be eligible for exemption from paying building tax under the Kerala Building Tax Act, 1975.

Under Section 3(1)(b) of the Act, buildings that are used principally for religious, charitable or educational purposes, or as factories or workshops, are exempted from building tax.

The state, in its appeal, had argued that a building used principally for religious or educational purposes can only be a building that is used for religious/educational activity and not for activity which has no direct connection with religious/educational activity — such as residential quarters for nuns, priests or hostel accommodation for students.

However, the top court bench of Justices R F Nariman and B R Gavai dismissed the contention.

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