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Issues: (i) Whether the nurses hostel building, and the different portions used for training, residence of student nurses, residence of regular nurses, and common facilities, were exempt from general tax as property exclusively occupied and used for a charitable purpose under the municipal taxation provisions. (ii) Whether the writ petition should be declined on the ground that an appeal lay under the statutory alternative remedy.
Issue (i): Whether the nurses hostel building, and the different portions used for training, residence of student nurses, residence of regular nurses, and common facilities, were exempt from general tax as property exclusively occupied and used for a charitable purpose under the municipal taxation provisions.
Analysis: The relevant municipal scheme exempted lands and buildings exclusively occupied and used for a charitable purpose, while excluding portions from exemption where trade, business, or rent was derived. The hostel was part of a charitable hospital and training institution, and the portion used for nursing training was integral to the charitable object of medical and educational service. The residence of student nurses could also be part of the training scheme, but the character of the small lodging charge and the precise nature of occupation required factual inquiry. The position of the regular nurses depended on whether their occupation was in the nature of tenancy or merely incidental accommodation in service conditions. The common rooms, library, offices, and similar facilities supporting the training function were likewise relevant to the charitable use. The assessment had been made without a proper investigation into these distinctions.
Conclusion: The assessment of the whole additional building as non-exempt was unsustainable, and the exempt and non-exempt portions required fresh factual determination.
Issue (ii): Whether the writ petition should be declined on the ground that an appeal lay under the statutory alternative remedy.
Analysis: Although an appeal was available, the remedy was subject to deposit of the disputed amount and was therefore onerous. The impugned assessment also showed a failure to apply the relevant statutory tests and required further factual inquiry, making the matter unsuitable to be left to the appellate route in the circumstances. In the exercise of writ discretion, the existence of an alternative remedy did not justify refusal of relief.
Conclusion: The writ petition was maintainable and was not barred by the alternative remedy.
Final Conclusion: The enhanced assessment was quashed and the matter was sent back for a fresh assessment in accordance with law and the observations made, with no order as to costs.
Ratio Decidendi: Where a property contains separable portions with different uses, exemption from municipal tax turns on whether each portion is exclusively used for a charitable purpose and whether any rent is derived, and a writ court may intervene despite an alternative appeal where the assessment is made without the necessary factual inquiry and the statutory appeal is onerous.
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