The Allahabad High Court while giving relief to IIT Rorkee stayed the demand worth Rs. 47.06 Crores.
Challenge in the writ petition is to a demand notice, issued by the second respondent, calling upon the petitioner to deposit a sum of Rs. 47,06,67,775/- as service charges, out of which Rs. 3,26,43,795/- are the current dues payable, while the remaining 43,80,23,980/- is the balance of earlier arrears along with interest payable thereon.
Counsel for the petitioner has submitted that the demand has been raised on the basis of an office memorandum dated 29.03.1967 issued by the Government of India, Ministry of Finance, Department of Coordination.
He contended that a Division Bench of this Court in Banaras Hindu University v. State of U.P. and others 2010 (10) ADJ 231 has held a similar office memorandum dated 26.04.1994 stating that though buildings of the Union are exempted from Municipal taxes, they are, however, liable to pay service charges as contemplated therein.
The bench observed that it has been held in the judgment that the statutory corporations as well as the societies are not of the Union Government even if they are established by the Union Government and therefore, they are not covered by the office memorandum.
It is also stated in the writ petition that education institutions are not liable to be taxed by the municipal corporations nor any services of the municipal corporation are being availed by the petitioner-Institute and therefore, also the demand is unwarranted.
Counsel appearing for the respondents has produced a letter of the Head of the Department, Institute of Paper Technology, IIT Roorkee, which admitted that the entire property of the Indian Institute of Paper Technology, both movable and immovable property, is property of Central Government.
The bench ordered that the Counsel appearing for the respondents may file a detailed counter-affidavit within two weeks.
The bench ordered that in the meantime, no recovery shall be made from the petitioner consequent to the impugned demand notice.
Case Information
Case Name: The Indian Institute Of Technology v/s State of U.P. and Another
Judicial Level & Location : Allahabad High Court
Case Number : WRIT – C No. – 22611 of 2024
Date of Decision : 01/08/2024
Decision in favor of: Petitioner
Judges: Justice Anjani Kumar Mishra and Justice Jayant Banerji
