ORDER :

W.P.No.4355 of 2019 :

The writ petition is filed under Article 226 of the Constitution of India seeking to declare the notification No.2829/2016/A2 dated 17.6.2016 issued by respondent no.3 and the consequential demand notice dated 20.9.2018 in assessment no.3187 bearing D.No.14-221, assessment no.511 bearing D.No.2-224, 2nd block and assessment no.3186 bearing D.No.14-220 at Yedidha village issued by respondent no.4 as illegal, arbitrary and consequently set-aside the same.

W.P.No.4368 of 2019:

The writ petition is filed under Article 226 of the Constitution of India seeking to declare the notification No.2829/2016/A2 dated 17.6.2016 issued by respondent no.3 and the consequential demand notice dated 20.9.2018 issued by the respondent no.4 as illegal, arbitrary and consequently set-aside the same.

3. As the issue involved in both the writ petitions is one and the same, both the writ petitions are being disposed of with a common order by taking the W.P.No.4355 of 2019 as a leading case.

4. Heard learned counsel for the petitioner in both the cases and learned Assistant Government Pleader appearing for the respondents.

5. The contention of the petitioner is that the petitioner is running business of storage of goods in godown in D.No.14-221, 14th block D.No.2-224, 2nd block at Yedidha village, Mandapeta Mandal, East Godavari District. The petitioner was regularly paying house tax to respondent no.4 gramapanchayat as per the tax receipts issued by 4th respondent for preceding years. In the year 2015-16, the petitioner on demand made payment of Rs.29,986/- towards house tax in D.No.14-221,14th block and pay Rs.18,167/- towards house tax in D.No.2-224, 2nd block. While that being the situation, the respondent no.4 had issued impugned demand notice dated 20.9.2018 calling up the petitioner to pay an amount of Rs.1,26,516/- within 30 days for assessment no.3187 property at D.No.14-221, 14th block and pay Rs.41,155/- towards assessment no.511 property at D.No.2-224, 2nd block towards house tax for the year 2018-19. As per the above said assessment, the house tax has been increased by 100% without having any reason mentioned in the impugned tax notice. On verification, the petitioner was informed that the respondent no.3 i.e. District Collector (Panchayat Raj wing), Kakinada has issued impugned notification No.2829/2016/A2 dated 17.6.2016 prescribing an uniform mode of building tax to be followed by all the gram panchayats in the East Godavari District. In the said notification, the 3rd respondent has prescribed the guidelines to impose tax and for valuation of property, type and basis in calculation of capital value of the building. The impugned notification issued by the 3rd respondent on 17.6.2016 prescribing the manner of ascertaining the capital value for levy of house tax encroaches into the legislative function of the Government under Rule 61(4)(ii) of the A.P.Panchayat Act, 1994 (for short Act) and the notification is liable to be struck down on that ground. The present impugned notification of the 3rd respondent mandates calculation of house-tax as per the market value which is contrary to the Act which mandates assessment of house tax by capital method. The market value assessment of house tax is beyond the scope of the Act and the same cannot be equated with capital value method in the absence of definition under the Act.

6. After notice, the 4th respondent has filed its counter. As per the averments in the Counter, the respondent has issued demand notice on 20.9.2018 to the petitioner herein calling upon to pay towards house tax for the year 2018-19. House tax has increased by over 100% and no apparent reason was mentioned in the impugned tax notice for such a sudden jump. The 3rd respondent after taking into consideration of the provisions of law and the Governmental Orders into consideration has issued the notification dt.17.6.2016 duly directing the concerned executive authorities to impose house tax as per general revi