SYED SHAH MOHAMMED QUADR, J.

( 1 ) THE petitioner challenges the validity of the Notice dated: 21-7-1995 issued by the Senior Special Revenue Inspector (NALA), first respondent herein to recover tax for the Fasli year 1405 (1995-96) as being illegal and arbitrary.

( 2 ) THE petitioner has taken on lease from the Visakhapatnam Port Trust (for short vpt ) land situated in portions of Survey Nos. 88, 89, 90 to 91 and 100 to 104 at Malkapuram, visakhapatnam for making construction and installation of oil storage tanks and distribution installations on the said land. When the petitioner was served with the notice of demand under Section 4 of the Andhra pradesh Non-Agricultural Lands Assessment act, 1963 (for short the Act) in Form-II for the Fasli years 1403 and 1404, the said demand was challenged in W. P. No. 3658/95 and the distraint order, which was the subject matter of the said writ petition, for recovery of the tax for the said Fasli years was quashed by an order of this Court dated: 19-6-1995. The petitioner submits that the impugned notice of demand was issued dated: 21-7-1995 just after pronouncement of the order in the above said writ petition.

( 3 ) SRI Koka Raghava Rao, the learned counsel for the petitioner, submits that the impugned notice was issued without conducting any enquiry and even without issuing notice in Form-I under Rule 3 of the Andhra Pradesh non-Agricultural Lands Assessment Rules, 1963 (for short the Rules ) and therefore, the demand is liable to be quashed.

( 4 ) HEARD the learned Special Government pleader for Taxes.

( 5 ) THE short question that arises for consideration in this case is - whether the petitioner is entitled to notice in Form-I being only an occupier of the land in question.

( 6 ) SECTION 3 of the Act is the charging section and it may be necessary to notice the provisions of that section insofar as it is relevant for our purpose. "3. Levy of assessment of Non-Agricultural lands :- in the case of non-agricultural land in a local area with the population specified in column (1) of the Schedule, there shall be levied and collected by the Government for each fasli year commencing on the first day of July, from the owner of such land, an assessment, at the rate specified in column (2) where the land is used for any industrial purpose, at the rate specified against it in column (3) where the land is used for any commercial purpose and at the rate specified against it in column (4) where the land is used for any other non-agricultural purpose including residential purpose. Provided that where assessment is levied and collected in respect of such land under this Act, no land revenue shall be payable in respect of that land and nothing contained in any enactment, regulation, order, bye-law, rule, scheme, notification, or other instrument having the force of law, in operation immediately before the commencement of this Act relating to the assessment, levy and collection of land revenue on non-agricultural land shall apply in respect of that land, except as respect things done or omitted to be done before the commencement of this Act. Provided further that any amount payable on such land at the commencement of this Act towards the arrears of land revenue may be recovered under the provisions of the Andhra Pradesh Revenue recovery Act, 1864. Explanation : Where the lands used for any industrial or commercial purpose and also for any other non-agricultural purpose, such land shall be assessed at the rate specified in column (2) or column (3) of the Schedule as if it were used solely for any industrial or commercial purpose, as the case may be. (2) Notwithstanding anything contained in sub-section (1) where the assessment leviable on any non-agricultural land under this Act is less than the land revenue payable on such land, the land revenue alone shall be payable on that land. The scheme of charging section is as follows : i) the assessment is for use of the land for non-agricultural purpose; i

Click Here to Read the rest of this document