Gram Panchayats must determine Rule 6(c) exemption claims before demanding property tax from educational institutions.

The petitioners, a charitable trust and its engineering college, challenged six Gram Panchayat property-tax demand notices issued between 27 November 2024 and 25 June 2025.

They also sought consideration of their representations dated 19 July 2024 and 31 January 2025.

The High Court recorded that the dispute was covered by an earlier coordinate-bench decision concerning property tax on educational institutions and proceeded to decide the petition on that basis.

Section 199(1) of the Karnataka Gram Swaraj and Panchayat Raj Act, 1993 authorises a Gram Panchayat to levy tax on buildings and lands subject to prescribed exemptions; Rule 3 of the Karnataka Panchayat Raj (Grama Panchayat Taxes and Fees) Rules, 1994 prescribes steps preceding levy, including a resolution and publication of notice.

Rule 6(c) exempts buildings and lands used solely for charitable or public religious purposes and not let out for rent.

In Town Municipal Council v. Vijaya College, the Court treated education as a charitable purpose in the context of the relevant tax exemption.

In The Sapthagiri Educational and Charitable Trust v. The Samandur Grama Panchayat, the Court held that an institution claiming Rule 6(c) exemption must establish the relevant facts before the Gram Panchayat; the authority must consider that claim before imposing tax.

The coordinate-bench decision in W.P. No. 16323 of 2021 applied these principles to Panchayat property-tax demands.

The Court considered the present dispute identical to the issue decided in W.P. No. 16323 of 2021, as followed in W.P. No. 103808 of 2017.

Applying that precedent, it held that the petitioners’ claim to exemption under Rule 6(c) must be assessed by the Gram Panchayat on supporting material before a tax demand is made.

The petitioners were directed to submit their supporting materials and representation to the Gram Panchayat within four weeks; the Panchayat was directed to consider the claim under Rule 6(c), in accordance with the coordinate-bench decision, within four weeks thereafter.