In Brief
The Supreme Court held that buildings used for residential accommodation of nuns and student hostels attached to educational institutions qualify for exemption from building tax under Kerala Building Tax Act, Section 3(1)(b). The Court ruled that exemption provisions serving beneficial purposes (religious, charitable, or educational) must be liberally construed to achieve their object, not strictly interpreted. The test is whether buildings are 'principally' used for the exempt purpose—meaning their dominant purpose—not whether activity directly occurs within them. Buildings integrally connected with religious or educational activity, such as nuns' residences and student hostels, qualify. The State's appeals were dismissed and a prior Division Bench judgment was upheld, while one assessment order was set aside."
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