The exemption from state taxation provided under Article 285 of the Constitution does not apply to taxes levied on the interest of lessees of government property used for commercial, industrial, or other non-agricultural purposes.

( 1 ) ANDHRA pradesh Non-agricultural Lands assessment Act. 1963 was enacted by the state of Andhra pradesh to provide for the levy of assessment on lands used for non-agricultural purposes. It has been amended by the Andhra pradesh Act (No. XXVIII) to 1974, which amendment Act came into force on 1-7-1974 the Amendment Act amended the definition of owner" in cl. (J) of sec. 2 along with certain other provisions of the Act. The definition of "owner" reads as follows:-"owner includes any person for the time being receiving or entitled to receive whether on his own account or as agent trustee guardian Manager, or receiver for another person or for any religious educational or charitable purpose rent or profits for the nonagricultural land or for the structure constructed on such land in respect of which the word is used and also includes in respect of the land owned by the state Government or the central Government. (i) a lessee. If the land has been leased out by the Government for any commercial industrial or other non-agricultural purpose; and (ii) a local authority, if the land is vested in the local authority and used for any commercial industrial or other non-agricultural purpose deriving income therefrom". We may also notice the definition of occupier and non-agricultural land continued in cls. (I) and (g) respectively of sec. 2:-"occupier includes- (1) any person for the time being paying or liable to pay to the owner rent or any portion of the rent for the non-agricultural land or for the structure constructed on such land or part of such land or structure. In respect of which the word is used or damages on account of the occupation of such land structure or part : and (ii) a rent-free occupant". "non-agricultural land" menas land other than the land used exclusively for the purpose of agriculture but does not include the land was exclusively for include the land used exclusively for- (i) cattle sheads; (ii) hay-ricks". Section 3 if the charging section It reads to the following effect:-"3. Levy of assessment of non-agricultural lands. (i) in the case of non-agricultural land in the local area with the population specified in col. (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 col (2) where the land is used for any industrial purpose. At the rate specified against it in col. (3) where the land is used for any commercial purpose and at the rate specified against it in col. (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 the 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 provision of the Andhra pradesh Revenue Recovery Act 1864. EXPLANATION:- Where the land is used for any industrial of commercial purpose and also for any other nonagricultural purpose such land shall be assessed at the rates specified in col. (2) or col (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-sec. (1) where the assessment leviable on any non-agricultural land under this Act is less than the land revenue alone shall be payable on that land".

( 2 ) THE land of levy is provided in the s