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The Madras High Court, dismissing a batch of petitions filed by the Airport Authority of India (AAI), decreed that a property owned by the AAI cannot be treated as a property of the Central Government and therefore, cannot avail exemption under Section 29 of the Tamil Nadu Urban Land Tax Act, 1966.

The Single Bench of Justice Shri S. M. Subramaniam held,

“The writ petitioner cannot be construed as ‘Central Government’ within the meaning of exemption clause as contemplated under Section 29 (a) of the Tamil Nadu Urban Land Tax Act, 1966 and consequently, the respondents are empowered to levy the Urban Land Tax under the provisions of the said Act.”

“The petitioner/ Airport Authority of India is liable to pay the Urban Land Tax as applicable,” Bench added.

Matter in Brief

Airport Authority of India (AAI) is a Statutory organization under the administrative control of Government of India, Ministry of Civil Aviation. It manages the Civil Airports and Civil Enclaves at Defence Airports across the country. AAI holds certain lands in the Villages of Pazhavanthangal, St. Thomas Mount, Cowl Bazaar, and Porur, and the said lands were assessed to The Assistant Commissioner, Alandur Zone. As against the levy of Urban Land Tax by the said Respondent, AAI filed Revision Petitions before the Special Commissioner (SC) & Commissioner of Land Reforms, Chepauk under Section 30(1) of the Tamil Nadu Urban Land Tax Act 1966 (the Act). The SC rejected the Revision Petitions. Aggrieved by this, AAI has filed the present petition.

Averments of the AAI

Counsel for the petitioner contended that Section 29 of the Act contemplates Exemptions, therefore, nothing in the Act shall apply to any State or Central Government-owned land.  It was also submitted that AAI is a “State” within the meaning of Article 12 of the Constitution of India as its functions are directly controlled by the Ministry of Civil Aviation. 

Order

Hearing the contentions of both the parties and relying upon the various judgments of the Court, specifically upon Municipal Commissioner of Dum Dum Municipality and others Vs. Indian Tourism Development Corporation and others (1995), the Court held that there is no infirmity or perversity in respect of the orders passed by the Assistant Commissioner, Alandur zone as well as the Appellate order passed by the Special Commissioner of Land Reforms, Chepuk.

Noting that the AAI has already deposited 50% of the demanded tax, the court further ordered the AAI to deposit the balance tax within four months from receiving the order.

Case Title: M/s. Airports Authority of India Vs. The Special Commissioner & Commissioner, Land Reforms and Ors.