THE HON’BLE SRI JUSTICE K.SARATH W.P.No.13322 of 2018

ORDER:

Heard learned counsel for the petitioners, learned Assistant Government Pleader for Panchayat Raj and Rural Development and learned Standing Counsel for the respondent No.6-Gram Panchayat.

2. Learned Counsel for the petitioners submits that the petitioner No.1 is an Educational Society registered under the provisions of the Societies Registration Act vide Registration No.1706 of 2007 and it has established the petitioner No.2 Institution for imparting various educational courses and constructed a building comprising of Ground+2 floors with Door No.4-24 of Kothur Village, Kandukur Mandal, Ranga Reddy District, during the year 2008 and put to use from the academic year 2009-10. The respondent No.6-Gram Panchayat issued house tax demand notice dated 17.05.2011 demanding dues for the year 2009-10 and 2010-11 for Rs.43,500/- and 45,675/- respectively and the same was paid by the petitioners. After five years, the respondent No.6 issued a demand notice dated 26.02.2016 demanding an amount of Rs.10,76,182/- by mentioning Rs.8,69,130/- up to 2013-15 March and Rs.2,47,052/- for the year 2015-16 March, for which the petitioner filed a revision petition before the respondent No.6 on 09.03.2016 under Rule 10 of the Rules Relating to Certain Taxes and Lodging of Moneys Received by the Gram Panchayat and Payment of Money From the Gram Panchayat Fund (for short ‘the Rules”) issued under G.O.Ms.No.30 PR. RD & R Department dated 20.01.1995, but there was no response.

3. Learned Counsel for the petitioners further submits that the respondent No.6 has again issued house tax demand notices on 20.01.2017 demanding an amount of Rs.10,76,182/- towards arrears and Rs.2,47,052/- towards dues of that current year and thereafter, a distraint warrant No.20 dated 20.03.2017 was issued for Rs.10,76,182/- and seized the bus No.AP 29-TA-9191 on 25.03.2017 and after payment of Rs.1,00,000/- on 25.09.2017, the bus was released and again a bill dated 25.11.2017 was issued demanding an amount of Rs.2,47,052/- towards house tax for the period from 01.04.2017 to 31.03.2018 showing the previous dues as ‘nil’. He submits that again the respondent No.6 issued the impugned notice dated 05.03.2018 for payment of Rs.2,47,052/- towards house tax for the period from 01.04.2017 to 31.03.2018 and Rs.12,06,765/- towards arrears up to 31.03.2017 and a distraint warrant was issued on 20.03.2018 demanding the total amount of Rs.14,53,817/- and thereafter on 09.04.2018, the respondent No.6 seized two buses of the petitioner under panchanama and issued notice on 12.04.2018 demanding payment of the said amount within one week, failing which the seized buses will be auctioned for recovery of the said house tax.

4. Learned counsel for the petitioners further submits that the house tax will be levied on the property basing on the annual rental value or capital value or such other basis as may be prescribed and the tax once imposed should be revised every year by a uniform hike of 5% on the existing house tax of the preceding years till the general revision was made once in a five years as per Rule 11 of the Rules. He submits that in respect of the property of the petitioners, initially the tax was imposed during the year 2009-10 for Rs.43,500/- which was enhanced by 5% during the year 2010-11 and imposed an amount of Rs.45,675/- and the same revision need to be made by enhancing the previous tax amount by 5% and the calculation made by the respondent No.6 basing on the values available during the year, 2012 is not permissible as the building was constructed during the year, 2008 as such the value available for calculating the house tax at that point of time to be taken into consideration. He further submits that as no general revision was carried during eight years after the house tax was fixed to the petitioner institution during the year 2009-10, the calculations arrived by the respondent No.6 are illegal and arbitrary. He