- 1 - NC: 2025:KHC:17780 WP No. 13205 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 13205 OF 2025 (LB-TAX) BETWEEN: 1. CHANAKYA UNIVERSITY A UNIVERSITY ESTABLISHED BY THE CHANAKYA UNIVERSITY ACT, 2021, HAVING ITS REGISTERED OFFICE AT GLOBAL CAMPUS, HARALURU, NEAR KEMPEGOWDA INTERNATIONAL AIRPORT, DEVANAHALLI TALUK, BENGALURU RURAL DISTRICT - 562 129. REPRESENTED BY ITS REGISTRAR, SUSHANT JOSHI. 2. CENTRE FOR EDUCATIONAL AND SOCIAL STUDIES A SOCIETY REGISTERED UNDER THE KARNATAKA, SOCIETIES REGISTRATION ACT 1960, HAVING ITS REGISTERED OFFICE AT 'PRAJNANAM', NO.6/6, BESIDE TELEPHONE EXCHANGE, 10TH BLOCK, 2ND STAGE, NAGARABHAVI, BENGALURU - 560 072. REPRESENTED BY ITS SECRETARY NAGARAJ REDDY. …PETITIONERS (BY SRI. S.S. NAGANAND, SENIOR COUNSEL FOR SRI. PRADYUMNA K.V, ADVOCATE) Digitally signed by PRAKASH N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:17780 WP No. 13205 of 2025 AND: 1. STATE OF KARNATAKA RURAL DEVELOPMENT AND PANCHAYAT RAJ DEPARTMENT, 3RD GATE, 3RD FLOOR, M.S.BUILDING, BENGALURU - 560 001. REPRESENTED BY THE ADDITIONAL CHIEF SECRETARY. 2. CHANNAHALLI GRAM PANCHAYAT CHANAHALLI, DEVANAHALLI TALUK, BENGALURU RURAL DISTRICT - 562 110. REPRESENTED BY ITS PRESIDENT AND PANCHAYAT DEVELOPMENT OFFICER. …RESPONDENTS (BY SRI. BOPANNA BELLIAPPA, AGA FOR R1 SRI. M.S.DEVARAJU, ADVOCATE FOR R2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO a) QUASH THE NOTICE BEARING NO.CHA.GRA.PAN.THERIGE/2024-25 DATED 06.11.2024 (ANNEXURE-K) AND THE NOTICE BERAING NO.CHA.GRA.PAN.THERIGE/2024-25 DATED 04.03.2025 (ANNEXURE-M) ISSUED BY RESPONDENT NO.2 TO PETITIONER NO.1. b) DIRECT RESPONDENT NO.2 TO CONSIDER THE REQUEST MADE BY THE PETITIONERS TO GRANT EXEMPTION UNDER RULE 16(c) OF THE KARNATAKA GRAM SWARAJ AND PANCHAYAT RAJ (TAXES, RATES AND FEES OF GRAM - 3 - NC: 2025:KHC:17780 WP No. 13205 of 2025 PANCHAYAT) RULES,2021. c) GRANT COSTS OF THE PROCEEDINGS 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 1. The petitioners have called in question validity of the demand at Annexures - K & M raised for the year 2024-25 by responder No.2 - Panchayath as regards property tax due. 2. Petitioner No.1 - University claims exemption from levy of property tax and various grounds have been raised including that 80G of the Income Tax Act exemption has been obtained by the petitioner No.2 which benefit is extended to the petitioner No.1 by virtue of the statute. 3. Various other grounds have been raised and it is submitted that in terms of the representations at Annexures - G, H and J, the claim for exemption has been made before respondent No.2. - 4 - NC: 2025:KHC:17780 WP No. 13205 of 2025 4. Noticing that the demand is for the period subsequent to 31.03.2022, the Karnataka Grama Swaraj and Panchayat Raj (Taxes, Rates and Fees of Grama Panchayats) Rules, 2021 (for short 'Rules, 2021') would apply. 5. The exemption from tax is provided under Rule 16 and the claim of the petitioners for exemption is purportedly under Rule 16(1)(c) of the Rules 2021. It is the further case as made out that without considering representations at G, H and J, question of raising demand without examining the claim for exemption is not tenable. 6. Sri M.S.Devaraju submits that he is yet to obtain instructions, but the matter may be disposed of directing the petitioners to make out their case for exemption in terms of Rules 16(c) of the Rules, 2021 as claimed by the petitioners. Accordingly, the demand at Annexures - K and M are set aside. 7. Petitioners to be present before respondent No.2 on 12.05.2025 at 11.30 am and make out their case for exemption. - 5 - NC: 2025:KHC:17780 WP No. 13205 of 2025 8. The procedure prescribed under Rule 32 may be resorted to by the Panchayath as is applicable in the present case. 9. All contentions are kept open. 10. Before raising demand, the respondent to record the finding as regards the claim for exemption. 11. Petitioners to submit necessary documents and make out their case for exemption and upon such case being made out, respondent No.2 to hear the petitioners and pass orders as is permissible in law. 12. Needless to state other categories of exemption under Rule 16 may also be examined as is permissible in law. Sd/- (S SUNIL DUTT YADAV) JUDGE DHA List No.: 2 Sl No.: 2