Spices Board Owned Property Not Exempt Under Article 285(1) Of Constitution: Kerala HC

The Court was hearing a Writ Petition filed by the Spices Board, to call for the records leading to demand notices and to quash the same. It also sought a declaration sought that the property and buildings owned and held by the Spices Board are not liable to be taxed in the light of exemption under Article 285 of the Constitution of India and relevant statutory exemptions.

The bench of Justice Basant Balaji observed, “I am of the firm opinion that the building and the property owned by the petitioner Board cannot be termed as one owned by the Central Government and cannot claim an exemption under Article 285(1) of the Constitution of India.”

Senior Government Pleader T.C. Krishna, appeared for the Petitioner and Standing Counsel K Janardhana Shenoy appeared for the Respondent.

Brief Facts-

The Petitioner, Spices Board, a statutory body established under the Spices Board Act, 1986 for promoting the export of spices and regulating cardamom cultivation and industry, has filed a petition against the respondents for making unlawful demands for property tax remittance to the local body. Even after submitting a representation requesting necessary clarifications to prevent such illegal tax demands, no response or clarification has been issued by the respondents. The petitioner approached the High Court seeking the relief.

The Court observed, “Though the grants and loans are by the Central Government and the Board had a separate fund, the Spices Board stands on a different footing than that of the Central Government.”

The Court relied on the decision in Food Corporation of India v. Thikkodi Panchayat (1994 KHC 378), it was held, “the FCI is not a department of the Central Government and hence it is not immune from tax under Article 285(1) of the Constitution of India.”

Accordingly, the Court dismissed the Writ Petition.