JUDGMENT

B.P. Jeevan Reddy, J.

1. Leave granted.

2. The Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963 (the Act) levies non-agricultural land assessment (NALA) for each fasli year at the rates specified. The rate varies depending upon the nature of user. Section 3 is the charging section. Section 7 of the Act provides for remission of NALA. It reads:

"7 Remission: The Government may, by general or special order and for just and sufficient reason to be recorded therein, remit in whole or in part, the assessment payable under this Act in respect of any non-agricultural land in a local area."

3. Section 11 confers upon the government the power to exempt any class of non-agricultural lands from the levy. Since it is this section which falls for consideration in this appeal, it would be appropriate to set it out in full:

"II. Power to exempt: (1) The Government may, by order, published in the Andhra Pradesh Gazette, setting out the grounds therein, exempt either permanently or for a specified period, any class of non-agricultural lands from the levy of assessment under this Act, subject to such restrictions and conditions as the Government may consider necessary to impose.

(2) Every order made under Sub-section (1) shall, immediately after it is made be laid on the table of the Legislative Assembly if it is in session, and if it is not in session, in the session immediately following, for a total period of fourteen days which may be comprised in one session or in two successive sessions and if, before the expiration of the session in which it is so laid or the session immediately following, the Assembly agrees in making any modification in the order or in the annulment of the order, the order shall thereafter have effect only in such modified form, or shall stand annulled, as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order."

4. Section 13 confers upon the government the power to make rules to carry out the purposes of the Act.

5. In the year 1965, the government issued G.O.Ms. No. 877 dated June 16, 1965 under Section 7 of the Act directing that "with a view to provide incentives to the industries established both in the public and private sectors in the State, either before or after the 1st July, 1963, half of the assessment payable under the Act in respect of the non-agricultural lands in the entire area of the industrial undertakings shall be remitted for a period of five years from the date of establishment, or upto the date of production of rated capacity of such undertakings, whichever is earlier". The validity of the G.O. is not in issue nor is it sought to be enforced by the appellant. It is referred to more as representing the first step in the matter of providing incentives to newly established industries.

6. In December 17, 1976, the government in Social Welfare department issued G.O.Ms. No. 201. The G.O. does not purport to have been issued under any enactment(s). At the end of G.O., it is recited that it is issued "by order and in the name of the Governor or Andhra Pradesh". The contents of the G.O. are to the following effect: with a view to explore the possibilities of rapid industrialisation of scheduled areas in the State, the government had set up an expert committee which had submitted its report in February, 1976. The expert committee had recommended the setting up of a High-Power Committee to formulate and implement industrial schemes in the scheduled areas. Government, accordingly, constituted a High-Power Committee in May. 1976. The High-Power Committee recommended certain incentives and concessions to industries to be established in scheduled areas. The government examined the said recommendations in consultation with the Revenue, Industries and Commerce, Finance and Planning departments and, hence, the said order. Four types of exemptions are provided by the G.O., viz .. (i) exemption from