(Per Bilal Nazki, J.)

These three writ petitions are being disposed of by this common order as they raise common questions of law and fact. We have heard learned counsel appearing for the petitioners and also learned Special Government Pleader appearing for the respondents.

2. These matters have come to the Full Bench on a reference made by a Division Bench. The Division Bench, while hearing the matters on 26-12-2005, by noting a Division Bench judgment of this Court reported in Vasishta English Medium School v. Basinikonda Gram Panchayat and another1, expressed the view that the matters are required to be heard by a Full Bench. Therefore, the matters have been placed before this Full Bench.

3. It is a short controversy as to whether Rules framed under Andhra Pradesh Gram Panchayats Act, 1964 (hereinafter referred to as the Gram Panchayats Act of 1964) were still in force and could be applied even after enactment of the Andhra Pradesh Panchayat Raj Act, 1994 (hereinafter referred to as the Panchayat Raj Act of 1994) and Rules framed there under. The petitioner-institutions are educational institutions and admittedly they were exempt from paying property tax in terms of the Rules framed under the Gram Panchayats Act of 1964. The Rules framed under the Gram Panchayats Act of 1964 contained a rule being Rule 5, under which a class of houses was exempt from the house tax. The contention of the petitioners is that even after the repeal of the Gram Panchayats Act of 1964, the Rules framed under that Act are still operative and in this connection, they relied on a judgment of this Court in Vasishta English Medium School, to which a reference has been made hereinabove (1st supra). But in that judgment, the learned Judges of the Division Bench did not consider the question whether after repeal of an Act, the Rules framed under the repealed Act would still continue to remain operative. It only noted, "It is not in dispute that the above said rules framed under the repealed Act continue to apply". Therefore, the learned Judges of the Division Bench applied Rule 5 framed under the repealed Act and granted relief to the petitioners in that case.

4. Section 69 of the Gram Panchayats Act of 1964 mentions the taxes which could be levied by Gram Panchayats. Section 70 lays down the basis on which house tax could be levied by the Gram Panchayats and subsection (4) of Section 70 gave power to the Government to make Rules providing· for exemption of specified classes of houses from the tax. It also gave certain powers to the Government. Therefore, under Section 70(4 )(i), the Government issued Rules and Rule 5 gave exemptions to certain institutions including the educational institutions. The position, however, changed after the Panchayat Raj Act of 1994 came into operation. This Act came into force on 26th of April 1994. Section 60 of this Act gave powers to the Gram Panchayats to levy house tax and other taxes. Section 61 prescribed the mode and the basis on which the taxes could be collected and Section 61 (4) gave powers to the Government, providing with the power, inter alia, of the exemption of special classes of houses from the tax. Virtually, the provisions in the old Act and new Act as far as powers of the Government relating to grant of exemptions are concerned, remained same. But Rules framed under the new Act did not give any exemption to any special classes of houses from the taxes. This is settled law that once an Act is repealed, the Rules framed there under or regulations made there under, or any other notifications issued there under, also stand repealed. However, the case of the petitioners as projected by learned counsel is that immediately after the new Act came into being, G.O.Ms. No.378 was issued by the Government on 28-6-1994. It is stated that this G.O. was issued by the Government in exercise of powers conferred by subsection (1) of Section 268 of the new Act read with Section 18 of the Andhra Pradesh General Clauses A