- 1 - NC: 2025:KHC:15102 WP No. 7665 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 7665 OF 2025 (LB-RES) BETWEEN: 1. THE BILLAWAR ASSOCIATION MUMBAI, BILLAWA BHAVAN, GURU NARAYAN MARG, SANTACRUZ (E), MUMBAI-400 055 BY ITS HONARARY GENERAL SECRETARY. 2. SHRI NARAYANA GURU HIGH SCHOOL, (KANNADA MEDIUM) PADUBELLE, UDUPI-574 116 BY ITS HEAD MASTER. 3. SHRI NARAYANA GURU ENGLISH MEDIUM SCHOOL, PADUBELLE, UDUPI - 574 116 BY ITS HEAD MASTER … PETITIONERS (BY SRI. MAHESH R UPPIN., ADVOCATE) AND: 1. STATE OF KARNATAKA BY ITS SECRETARY, DEPARTMENT OF PANCHAYAT RAJ, VIDHANA SOUDHA, BENGALURU-560 001. 2. BELLE GRAMA PANCHAYATH, BELLE, UDUPI - 576 120. REP. BY ITS P.D.O. … RESPONDENTS Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:15102 WP No. 7665 of 2025 (BY SMT. B.P. RADHA, AGA FOR R1; SRI ASHOK N. NAYAK, ADVOCATE FOR R2 ) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE DEMAND ORDER BEARING SL. NO. 201 OF BOOK NO. 1/73 DATED NIL ISSUED BY THE RESPONDENT NO.2 AGAINST PETITIONER NO.2 MARKED AS ANNEXURE-D AND THE DEMAND ORDER BEARING SL. NO. 201 OF BOOK NO. 1/73 DATED -NIL- ISSUED BY THE RESPONDENT NO.2 AGAINST PETITIONER NO.3 MARKED AS ANNEXURE-E AND THE LETTER DT 20-02- 2025 BEARING NO. 689/2024-25 ISSUED BY RESPONDENT NO.2 MARKED AS ANNEXURE-H AND THE LETTER DT 20-02- 2025 BEARING NO. 690/2024-25 ISSUED BY RESPONDENT NO.2 MARKED AS ANNEXURE-J BY ISSUING A WRIT IN THE NATURE OF CERTIORARI AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV ORAL ORDER The petitioners have sought for setting aside of the Demand Orders at Annexures-'D' and 'E' and letters dated 20.02.2025 at Annexure-'H' and 'J' made by the respondents, wherein property tax has been demanded. 2. It is the case of petitioners that petitioner No.1 is a Public and Charitable Trust registered under the provisions of Bombay Public Trust Act, 1950 and petitioner Nos.2 and 3 are the Educational Institutions are being run - 3 - NC: 2025:KHC:15102 WP No. 7665 of 2025 under the said Trust. It is the further case of the petitioners that in terms of Rule 6 of the Karnataka Panchayat Raj (Grama Panchayat Taxes and Fees) Rules, 1994, there is an exemption for buildings and lands from levy of tax and under sub-section (1) of Section 199 of the Karnataka Panchayat Raj Act, 1993. 3. It is further asserted that the buildings and lands used solely for charitable or public religious purposes and not let out for rent are entitled for exemption from levy of taxes. 4. It is also submitted by the petitioners that even under the subsequent Rules, viz., Karnataka Gram Swaraj and Panchayat Raj (Taxes, Rates and Fees of Gram Panchayats) Rules, 2021 ['2021 Rules' for short] which came into effect from 29.12.2021, there is a provision for exemption for Charitable Institutions registered under the Karnataka Hindu Religious Institutions and Charitable Endowments Act, 1997 as well as the Institutions carrying - 4 - NC: 2025:KHC:15102 WP No. 7665 of 2025 on activities only for public purposes and having Section 80G exemption. 5. Sri Ashok N. Nayak, learned counsel appearing for respondent No.2 submits that the applicability of exemption depends on the petitioner Trust demonstrating that they fall within the exemption clause under Rule 16 of 2021 Rules. Further, it is submitted that the representatives of petitioner Trust ought to appear before the respondent Authorities and make out a case for exemption. It is also submitted that the Circular dated 12.02.2025 bearing No. f¥ÀAG:Pˤì¯ï:¹Dgï:E-191280:2024-25 has been issued providing for exemption and in terms of the said Circular, the petitioner is required to furnish the documents more fully mentioned in Clause (II), (a), (b), (c), (d) and (e) of the Circular. 6. Heard both sides. 7. Needless to state that the entitlement of petitioner Trust for exemption is a matter regarding which the respondent Grama Panchayat is to pass orders before - 5 - NC: 2025:KHC:15102 WP No. 7665 of 2025 raising any demand, for which purpose the petitioner is to appear before respondent No.2 within 15 days from the date of disposal of the petition and to place forth its case for exemption. The petitioner to take note of the requirements of Circular dated 12.02.2025 as may be applicable and upon such case being made before respondent No.2, respondent Grama Panchayat is to afford an opportunity of hearing and dispose of the plea of petitioner. 8. Accordingly, the Demand Orders at Annexures-'D' and 'E' and letters dated 20.02.2025 at Annexure-'H' and 'J' are set aside, reserving liberty to respondent No.2 to raise a demand as per law, if occasion so arises, after hearing the petitioner Trust as stated above. All contentions are kept open. Subject to above observations and directions, the petition is disposed off. Sd/- (S SUNIL DUTT YADAV) JUDGE VGR