Back
Andhra Pradesh High Court
Judges : DALAVA SUBRAHMANYAM, MOTILAL B.NAIK
Municipal Rate Payers Association, Anantapur - Appellant
Versus
State OF A.P.Municipal Administration and Urban Development - Respondent
Decided On : 10-22-02
A. P. Municipalities Act,1953 - Section 326, Section 81,124 – A. P. Municipalities (Assessment of Taxes) Rules 1990 - Constitution of India - Article 243-Q, Article 243-P, Article 243-V, Article 243-T, Article 243, Article 243-U, Article 243-X - Contended that through 74th Constitutional amendment, Parliament, laying emphasis on self-government, inserted Article 243-P to 243-ZG to constitution under Part IX-A, which will go a long way in making Local bodies independent - Learned counsel stated that action of State Government issuing G. O. Ms and g. O. Ms. Is a fraud on Constitution - It is also submitted that powers to make rules by State government is traceable to Section 326 of A. P. Municipalities Act but such powers may not fall within ambit of Article 243-X of Constitution of India and as such any order issued invoking power under Sec. 326 of Act is ultra vires provisions of Part IX-A of constitution of India - Apart from these submissions, all learned counsel tried to urge before this Court that determination of property tax wherever it is proposed under section 81 of Act, levy of tax shall be preceded by a resolution by Municipal council and without there being any resolution by Municipal Council, commissioner could not have determined property tax on irrational basis and pleaded that on this ground alone property taxes determined by respective commissioners of Municipalities have to be set at naught - Contentions, learned counsel have drawn our attention to taxation provision s appearing in A. P. Municipalities Act from Sections 81 to 124 and the rules made there under and Rules 1990 - It is submitted in one voice by all learned counsel that creating divisions of municipalities into Zones for purpose of assessment of tax is impermissible, inasmuch as, property tax is to be determined against each property and as such individual assessment has to be made against each property and that determination of property tax on sample basis is impermissible - Lastly it is submitted by learned counsel that steep rise in property tax in some cases is 300 to 400% and therefore, pleaded that such steep rise in property tax is causing hardship to individuals and therefore, petitioners seek appropriate direction as-prayed - Held, Court says that It is our view that Act and Rules provide a complete code for assessment of property tax to be levied for buildings and lands within municipal corporation - Hon ble Supreme Court further observed thus intent and purpose of exercise to determine annual rental value is to avoid arbitrariness in process of assessment of tax and also to ensure that landlord does not escape payment of amount due as tax by taking recourse to fraudulent and manipulated underwriting of rental value - For proper implementation of provisions of Municipal Act it is necessary that power of assessment should be vested in an authority "specified" in statute - Importance of specifying authority to assess property tax under Municipal Act cannot be overemphasized - Keeping in view incidence of tax persons who are to bear burden of payment of tax and effect it will have on funds of municipalities for purpose of development of area, legislature vested power in Commissioner of municipal corporation to complete exercise - Thus there is no ambiguity or inconsistency in provisions of act, 1965 and Rules made there under, which could be held as inconsistent with provisions under Part IX-A of constitution - When State Legislature has already made provisions under Act, 1965, if Legislature, in its wisdom thinks, some more provisions or safeguards to be made for promoting objectives of Part IX-A of Constitution of india, it is for Legislature to do so and not for this Court to suggest to act in a particular fashion, as long as provisions or rules made are not inconsistent with constitutional scheme - Court do not think this Court can look into each and every assessment relating to property taxes of all municipalities and examine correctness or otherwise - Respondents have stated in counters that due procedure has been followed - However, for individual grievances, remedies are provided under Act, which could be availed of in such cases - Court in counters filed by respondents, it has been categorically stated that enhancement in property tax would be restricted as per two G. Os O. Ms and g. O. Ms - In view of those two Government Orders, court think petitioners need not agitate that increase of property tax is abnormal - Writ Petitions Dismissed.
( 1 ) IN all these writ petitions the controversy involved is about the assessment of property tax of the building located in the limits of different municipalities in the State of andhra Pradesh.
( 2 ) FEW petitioners have sought a mandamus declaring the rules framed under G. O. Ms. No. 438, dated 29-10-1990 and the notification dated 8-2-2002 and the final notification No. 30/02 dated 1-3-2002 as illegal, arbitrary and ultravires the provisions of the A. P. Municipalities Act and violative of the rights of the citizens guaranteed under Articles 14 and 300-A of the Constitution of India.
( 3 ) FEW of the petitioners have sought a direction by calling for the records relating to and in connection with G. O. Ms. No. 167, m. A. , dated 18-4-2002 issued by the government of Andhra Pradesh and also sought to set aside the same as being violative of Part IX-A of the Constitution of india and Articles 14, 19, 300-A of the constitution of India and Chapter I of part IV of the A. P. Municipalities Act.
( 4 ) IN another set of writ petitions, a writ of Mandamus is sought declaring the notification issued in Form-B whereunder enhanced property tax is sought to be collected with effect from 1-4-2002 as illegal, arbitrary and violative of Sections 81 and 87 of the A. P. Municipalities Act and the rules made thereunder and contrary to the resolutions passed by the Municipal councils of respective municipalities.
( 5 ) AS indicated by us, though the common relief relates to the assessment of property tax for the buildings located in the limits of different municipalities, few of the writ petitioners have chosen to challenge the rules made under G. O. Ms. No. 438, dated 29-10-1990 by the Municipal administration, Urban Development department, Government of Andhra pradesh and few of them sought to challenge the Government Order putting a limit on the assessment of tax on the ground that it is violative of constitutional provisions under Part IX-A of the constitution of India and other writ petitioners have sought to question the enhancement of property tax on the ground of unsustainability, they are being disposed of by the following common order.
( 6 ) ON behalf of the writ petitioners in all these writ petitions we have heard sri C. Kodandaram, learned counsel for the petitioner in W. P. No. 5307 of 2002 and few other writ petitions; Sri T. Jagadish, learned counsel for the petitioners in W. P. Nos. 12324 and 12279 of 2002; Sri K. V. Chalapathi Rao, learned counsel for the petitioners in w. P. No. 21951 of 1997 and W. P. No. 5757 of 2002 and Sri K. N. Jwala, learned counsel for the petitioner in W. P. No. 14871 of 2002. We have also heard other learned counsel appearing on behalf of other writ petitioners, who mainly supported the submissions made by Sri Kodandaram, sri Jagadish, Sri Chalapathi Rao and sri K. N. Jwala, learned counsel.
( 7 ) THE gist of the submissions made on behalf of the writ petitioners could be stated as under.
( 8 ) ACCORDING to the learned counsel, when a mode is provided for assessing the property tax and when it is not followed, it is either abusive of powers or ultravires the powers. It is mainly contended that through 74th Constitutional amendment, Parliament, laying emphasis on self-government, inserted Article 243-P to 243-ZG to the constitution under Part IX-A, which will go a long way in making the Local bodies independent. The learned counsel stated that the action of the State Government issuing G. O. Ms. No. 154, dated 8-4-2002 and g. O. Ms. No. 167, dated 18-4-2002 is a fraud on the Constitution. It is also submitted that the powers to make rules by the State government is traceable to Section 326 of the a. P. Municipalities Act (for brevity "the act"), but such powers may not fall within the ambit of Article 243-X of the Constitution of India and as such any order issued invoking power under Sec. 326 of the Act is ultravires the provisions of Part IX-A of the constitution of India. Ap
SupremeToday
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
