The Allahabad High Court has held that the School is liable to pay water-tax and sewerage-tax even if exempted from building tax.
The bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar has observed that the building-tax is levied under the U.P. Municipal Corporation Act, 1959, which provides for exemption under Section 177(c) for schools; however, the levy of water tax and sewerage tax is under the U.P. Water Supply and Sewerage Act, 1975, in which no exemption is apparently available.
The petitioners has challenged the assessment and demand of house-tax and water-tax for the financial year 2023-24 issued by the Tax Superintendent, Nagar Nigam, Moradabad. The petitioner was required to pay the outstanding building tax and interest, besides the water-tax and sewerage-tax.
After filing of the writ petition, the department have issued an amended bill by which the demand pertaining to the building-tax has been done away with on account of the exemption available to the petitioners, however, the demand pertaining to the water-tax and sewerage-tax has been maintained.
The petitioner contended that once the building-tax has been exempted, the respondents are not justified in demanding water-tax and sewerage-tax.
The court while dismissing the petition held that levy of the water-tax and sewerage-tax, is not dependent on levy of building-tax.
Case Details
Case Title: S.H. Kazmi Skhisha Samiti and another Versus State of U.P. and 2 others
Case No.: WRIT TAX No. – 2468 of 2024
Date: 7.1.2025
Counsel For Petitioner: Anwar Hussain
Counsel For Respondent: C.S.C., Ankur Agarwal (S.C.), Shyam Mani Shukla
