TMI Blog1963 (2) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... perties mentioned in cls. (a) to (g) thereof. Clause (g) mentions such buildings and lands used for the purpose of a factory as may be prescribed. Prescribed has been defined as 'prescribed by the rules made under the Act.' Rule 18 of the Punjab Urban Immovable Property Tax Rules, that were framed by the Punjab Government in 1941, prescribed buildings 'and lands for the purpose of cl. (g) of s. 4. The Assessing Authority rejected the claims for exemption made by the respondents and assessed the buildings for the purpose of taxation. The appeals to the Deputy Excise and Taxation Commissioner were unsuccessful. The respondents then moved the Punjab High Court under Art. 226 of the Constitution praying that the order of the Taxation Commissioner be -quashed. In both the cases the High Court held that the petitioners were entitled to the exemption prayed for and quashed the orders of assessment. The question in these appeals therefore is whether the High Court was right in its view that the buildings of the respondents come within the class which has been prescribed for exemption by Rule 18 of the Punjab Urban Immovable Property Tax Rules, 1941. The relevant portion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the two cases for solving the controversy we have to arrive at the correct interpretation of the words used for the purpose of a factory and the word rent in the Rule. It is neither necessary nor desirable to attempt to define what amounts to 'use for the purposes of a factory. That the legislature left this undefined is a good indication that the intention of the legislature was to have the question decided, in any case where controversy arises over it, on a consideration of the facts of the case. It appears to us to be reasonable to think, however, that two principles will be easy of application in the solution of tile problem in the majority of cases. One is that where the building is used for a purpose which the factory law requires must be fulfilled in order that the factory may function, that will be user for the purpose of a factory. The other is that where the user of the building is such as is necessary for the efficiency of the machines or of the workmen engaged in the factory the building should be held to be used for the purpose of a factory. The 5th Chapter of the factories Act contains numerous provisions for the welfare of workmen employed in the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not required by law and have raised buildings for that purpose' In our opinion, the use of buildings for the provision of such facilities and amenities which are necessary to the maintenance of a proper standard of efficiency of the factory workers must also be held to be 'Use for the purpose of a factory. The learned Advocate-General, who appeared for the State of Punjab, readily agreed that when a building is provided for the use of the machinery in order that the machinery may function efficiently or that it may not deteriorate, the building is being used 'for the purpose of a factory . He is reluctant however to apply a similar rule to a building used for the purposes of maintaining the efficiency of the men ;go-- work the machinery. We are unable to see any reasonable ground for this differentiation. just as the use of a building for a purpose which maintains the efficiency of the- machines is a user for the purpose of a factory, so also, we are convinced, is the user of a building for the purpose of pro- viding something which is necessary for maintaining the efficiency of the workers. A large number of cases were cited at the Bar to show how the English c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In our opinion, the allotment of these buildings for the use of the workmen was made for a purpose which was necessary to the efficiency of the workmen. The property assessed in the other appeal (in which Shri Gopal Paper Mills Ltd., is the respondent) consists of 200 quarters which have been allotted to workers of the factory for their occupation. The provision of such quarters is clearly necessary to the welfare and efficiency of the workmen and it must be held that in this case also the buildings were being used for the purpose of a factory. The next question is : what is the meaning of rent in cl. (ii) of Rule 18 (4). In its wider sense rent means any payment made for the use of land or buildings and thus includes the payment by a licensee in respect of the use and occupation of any land or building. In its narrower sense it means payment made by tenant to landlord for property demised to him. Did the rule-making authority when providing that the exemption provided by sub.rules 1 and 2 of Rule 18 shall not extend to quarters and other buildings for which rent is charged, used the word in its wider sense or in its narrower sense? In seeking an answer to this questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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