- 1 - HC-KAR NC: 2025:KHC:28978 WP No. 19269 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 19269 OF 2025 (LB-TAX) BETWEEN: M/S WHITEFIELD REFRACTORIES PVT LTD PLOT NO.18, KIADB INDUSTRIAL AREA, CHOKKANAHALLI VILLAGE, KASABA HOBLI, HOSKOTE TALUK, BENGALURU RURAL-560 067 REP BY ITS VICE PRESIDENT, SRI NARAYANDAS R JAJU [INCORPORATED UNDER THE COMPANIES ACT, 1956] …PETITIONER (BY SRI. SHOWRI H.R., ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF RURAL DEVELOPMENT AND PANCHAYAT RAJ, M.S. BUILDING, BENGALURU-560 001. REPRESENTED BY ITS PRINCIPAL SECRETARY. 2. KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD NO.49, 4TH AND 5TH FLOOR, EAST WING, KHANIJA BHAVAN, RACE COURSE ROAD, Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:28978 WP No. 19269 of 2025 BENGALURU-560 001. REPRESENTED BY ITS CEO AND EXECUTIVE MEMBERS. 3. CHOKKANAHALLI VILLAGE PANCHAYAT CHOKKANAHALLI VILLAGE, KASABA HOBLI, HOSKOTE TALUK, BENGALURU RURAL DISTRICT-562 114. REPRESENTED BY ITS PANCHAYAT DEVELOPMENT OFFICER …RESPONDENTS (BY SRI. BOPANNA.B., AGA FOR R1; SRI. P.V.CHANDRASHEKAR FOR R2; SRI. M.S.DEVARAJU FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE UNDATED DEMAND NOTICES ISSUED ON THE PETITIONER BY HAND PRODUCED HEREWITH AT ANNEXURE A AND B RESPECTIVELY, ETC. THIS PETITION, COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The present petition is filed by the petitioner- Company, which is the absolute owner of an industrial plot situated within a duly notified industrial area governed by the Karnataka Industrial Areas Development Board - 3 - HC-KAR NC: 2025:KHC:28978 WP No. 19269 of 2025 (KIADB). The grievance of the petitioner arises out of the impugned Property Tax Demand Notice issued by respondent No.3 – the jurisdictional Gram Panchayat in respect of the subject property for the assessment year 2022-23. The core issue for consideration is whether the Gram Panchayat has the authority to levy property tax on industrial lands that continue to fall within the administrative and legal purview of KIADB. 2. This precise question has already been conclusively settled by this Hon’ble Court in the case of W.P. No.26031/2017 and connected matters, wherein it has been categorically held that unless and until a formal notification is issued by the State Government under Section 37 of the Karnataka Industrial Areas Development Act, 1966 (for short, "the KIAD Act"), withdrawing the particular industrial area from the jurisdiction of KIADB, the Gram Panchayat cannot usurp the authority to levy or collect property tax in respect of such industrial lands. The Court in the said decision has emphasized that the - 4 - HC-KAR NC: 2025:KHC:28978 WP No. 19269 of 2025 jurisdiction to levy property tax continues to vest exclusively with KIADB until such a statutory withdrawal is effected through an express notification by the State. 3. Further, in a series of analogous matters involving identical factual and legal issues, this Hon’ble Court has consistently quashed similar tax demand notices issued by various Gram Panchayats, holding them to be unsustainable in the absence of a specific enabling statutory provision or a withdrawal notification issued under Section 37 of the KIAD Act. In the present case as well, the impugned tax demand notice suffers from the same legal infirmity and is squarely covered by the binding precedent cited above. Therefore, the issuance of the impugned demand by respondent No.3 is without jurisdiction and liable to be quashed. 4. In that view of the matter, the petition is liable to succeed, accordingly this Court proceed to pass the following: - 5 - HC-KAR NC: 2025:KHC:28978 WP No. 19269 of 2025 ORDER i) The writ petition is allowed. ii) The impugned demand notices issued vide Annexures - A and B are hereby quashed. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE DHA List No.: 1 Sl No.: 52