- 1 - NC: 2025:KHC:13585 WP No. 5946 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 5946 OF 2025 (LB-TAX) BETWEEN: SRI BASAVARAJ EDUCATIONAL TRUST, A REGISTERED TRUST HAVING ITS OFFICE AT NRUPATUNGA EXTENSION, HIRIYUR, CHITRADURGA, KARNATAKA - 577 598. REPRESENTED BY ITS TREASURER P.RAMESH, AGED ABOUT 52 YEARS. …PETITIONER (BY SRI. PAWAN SHYAM A.,ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY URBAN DEVELOPMENT AUTHORITY, VIDHANA SOUDA, BANGALORE - 560 001. 2. CITY MUNICIPAL COUNCIL HIRIYUR - 577 598 CHITRADURGA, KARNATAKA, REPRESENTED BY ITS CHIEF OFFICER …RESPONDENTS (BY SMT. B.P.RADHA, AGA FOR R1 SRI. S.MAHESH, ADVOCATE R2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ORDER OR Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13585 WP No. 5946 of 2025 DIRECTION AGAINST THE RESPONDENTS TO QUASH THE DEMAND NOTICE BEARING NO. DATED 30/12/2024 VIDE ANNX-H AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV ORAL ORDER 1. The petitioner has challenged the action of the second respondent in issuing impugned notice at Annexure-H. 2. The notice at Annexure - H is to the effect that the petitioner's institution includes a profit motive as the institution is collecting donations and fees and as the petitioner had not made out a reply, necessary time of 15 days was granted to pay the tax due. 3. Learned counsel appearing for the second respondent submits that the notice at Annexure - H is to be treated as a Show cause notice and the petitioner may make out a reply. - 3 - NC: 2025:KHC:13585 WP No. 5946 of 2025 4. Learned counsel for the petitioner would point out that there is an exemption from taxes in terms of Section 94(1-A)(i) of the Karnataka Municipalities Act, 1964 and accordingly the notice is one without jurisdiction. 5. It must be noticed that Section 94(1-A)(i) of the Municipalities Act reads as follows: "94(1-A)(i) The following buildings and vacant lands shall be exempted from the property tax, namely :- (i) buildings or vacant lands exclusively used for, - (ii) student hostels, which are not established or conducted for profit; (iii) educational purposes by recognized educational institutions;" 6. Any decision of the second respondent would be on the premise that the building or vacant land is exclusively used for educational purposes by recognized educational institutions. Such aspect of the matter is dependent upon reply by the petitioner to the notice at Annexure - H which in light of the stand of the respondent is to be treated as a Show Cause Notice. - 4 - NC: 2025:KHC:13585 WP No. 5946 of 2025 7. Accordingly, the petition is disposed off by treating the notice at Annexure - H as the Show Cause Notice while adjudicating the show cause notice, respondents are also to take note of decisions which the petitioner relies upon including the order passed in W.P.No.1236/2025 as is applicable. 8. All contentions are kept open. 9. Petition is disposed off in terms of the observations made above. 10. Needless to state the second respondent not to take any precipitative action in the form of demand till the proceedings are completed. 11. The petitioner to take their stand to the Show Cause Notice within a period of two weeks from the receipt of certified copy of the order. Sd/- (S SUNIL DUTT YADAV) JUDGE DHA List No.: 1 Sl No.: 63