THE HON’BLE THE CHIEF JUSTICE ALOK ARADHE AND THE HON’BLE SHRI JUSTICE ANIL KUMAR JUKANTI WRIT PETITION No.26644 OF 2010

ORDER:

(per the Hon’ble Shri Justice Anil Kumar Jukanti)

Mr. Nishanth Pinnamaneni, learned counsel representing Mr. Challa Gunaranjan, learned counsel for petitioners on record.

Mr. T.Srikanth Reddy, learned Government Pleader for Revenue for respondents.

2. This Writ Petition is filed seeking the following relief:

“…to issue a writ, order or direction more particularly one in the nature of Mandamus, declaring the action of the respondents 2 to 5 demanding the petitioner company, though the demand notice dt.05-08-2010 issued by the 5^th respondent, to pay an amount of Rs.3,02,513/- along with the compound interest @12% p.a. since 1997-98 and onwards as being the alleged Non-Agricultural land Assessment (NALA) Tax up to the Faslis 1406 and 1407 under the provisions of the A.P. Non-Agricultural Land Assessment Act, 1963, as being arbitrary, illegal, improper, unjust and unenforceable, apart from having been barred by the law of limitation, and consequently quash the demand notice dt.05-08-2010 issued by the 5th respondent and also direct the respondent to refund the amount paid in excess for Faslis 1408 to 1410, and pass such other order or orders…”

3. Brief facts:

1^st petitioner is a Company incorporated under the provisions of Indian Companies Act, 1913 (hereinafter referred to as “the Act, 1913”), having its registered office at Chennai and principal office at Hyderabad. The Company is engaged in manufacture and sale of cement having one of its Unit at Malkapur Village, Thadur Mandal, Ranga Reddy District. It is a fact borne by record that M/s. Visakha Cement Industries Limited was merged with the 1^st petitioner Company by virtue of an order in Company Petition No.136 and 137 of 2007.

3.1 Unit commenced its production in 1998 (as per petitioners) and was being assessed under Andhra Pradesh Non-Agricultural land Assessment Act, 1963 (hereinafter referred to as ‘NALA Act’). G.O.Ms.No.335, dated 22.05.2001, was issued exempting all industrial units in the State from levy of NALA on non- agricultural lands for a period of 5 years from 01.04.2000 to 31.03.2005. 1^st Petitioner Company, without noticing the G.O., states to have paid NALA for the period from 01.04.2000 to 30.06.2002 (for 27 months).

3.2 Andhra Pradesh Agricultural Land (Conversion for Non Agricultural Purposes) Act, 2006 (hereinafter referred to as “the Act, 2006”) came into force on 21.02.2006. By virtue of Section 15 of the Act, 2006, NALA Act stood repealed and no further assessment could be done under NALA Act.

3.3 1st petitioner Company received a letter, dated 03.05.2010, from 5^th respondent asking to pay an amount of Rs.9,07,539/- towards NALA pertaining to Fasli years 1405 to 1407 (1995 to 1997). A reply was filed to the said demand notice by giving the particulars of amounts paid towards NALA for the years 1998-99 to 2001-02 and stating that an amount of Rs.67,884/- was due to the Company. The 5th respondent vide letter Lr.No.A/319/2010, dated 05.08.2010, issued a final demand notice to pay an outstanding amount of Rs.3,02,513/- along with compound interest within a week’s time, failing which action would be initiated under the relevant Acts accordingly. This final demand notice is under challenge in this writ petition.

4. It is submitted by the learned counsel for the petitioners that the Company was paying the amounts towards NALA as per the demand notices raised from time to time, from 01.07.1998 to 01.07.2001. That vide G.O.Ns.No.335, dated 22.05.2001, all industrial units were exempted from levy of assessment on non- agricultural lands for a period of five years from

01.04.2000 to 31.03.2005.

4.1 It is submitted that the Company, without noticing G.O.Ms.No.335, paid amounts under NALA for the period from 01.04.2000 to 30.06.2002 (27 months). That an amount of Rs.3,70,397/- was paid in excess, but the said amount is exempted under the said G.O. The