Food Corporation of India Vs. The Sub-Collector, Narsapur & Ors.
EmailAppeal: Civil Appeal No. 8746 of 1995
(From the Judgment and Order dated 31.10.89 of the Andhra Pradesh High Court in W.P. No. 12789 of 1989)
(From the Judgment and Order dated 31.10.89 of the Andhra Pradesh High Court in W.P. No. 12789 of 1989)
Petitioner: Food Corporation of India
Respondent: The Sub-Collector, Narsapur & Ors.
Apeal: Civil Appeal No. 8746 of 1995
(From the Judgment and Order dated 31.10.89 of the Andhra Pradesh High Court in W.P. No. 12789 of 1989)
(From the Judgment and Order dated 31.10.89 of the Andhra Pradesh High Court in W.P. No. 12789 of 1989)
Judges: D.P. WADHWA & M.B. SHAH, JJ.
Date of Judgment: Jul 27, 1999
Appearances:
Mr. S.K. Dholakia, Mr. P.A. Choudhary, Senior Advocates, Mr. Yashank P. Adhyaru, Mr. U.A. Rana, Mr. Arun, Mr. Rajiv Kapur, Mr. Sanjay Kapur, Mr. Y.P. Rao, Mr. P.N. Puri, Mr. Ashok Kr. Gupta, Mr. C.K. Sucharita, Mr. K. Ram Kumar, Mr. G. Prabhakar, Ms. T. Anamika, Advocates with them for the appearing parties.
Head Note:
CONSTITUTION LAWS
Constitution of India, 1950
Article 285, with Andhra Pradesh Non-Agricultural Lands Assess-ment Act, 1963- Food Corporation of India – If exempted from tax. Held that it is not exempted. FCI v. Municipal Corporation Jalalabad (JT 1999 (5) SC 124) relied upon. (Para 3)
JUDGEMENT:
D.P. Wadhwa, J.
1. Food Corporation of India (‘Corporation’ for short) is ag-grieved by judgment dated October 31, 1989 of the Andhra Pradesh High Court holding that Corporation is liable to non-agricultural land tax amounting to Rs.20,994.80 for the fasli years 1384 to 1397. The tax is levied under the Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963 (for short the ‘Act’). Before the High Court Corporation had challenged the order of the appellate authority under the Act confirming the demand issued for collec-tion of non-agricultural land tax for 14 years. The demand was raised by Palakole Mandal, West Godavari District, Andhra Pra-desh.
2. Two contentions have been raised before us: (1) Corporation is exempt from taxation under Article 285 of the Constitution and (2) assessment has to be made for each year and respondent No. 2 Palakole Mandal could not make assessment for 14 years on one go.
3. Corporation is constituted by the Food Corporation Act, 1964. In our Judgment in Civil Appeal No. 7054 of 1995 (Food Corpora-tion of India v. Municipal Committee, Jalabad and another), we have held that Corporation cannot claim exemption from taxation under Article 285 of the Constitution.
4. Under Section 3 of the Act for levy assessment on agricultural land has to be for each fasli year. If we look at the order impugned before the High Court confirming the demand for 14 years it is not that assessment was not made for each fasli year sepa-rately. It is only the demand which has been raised for 14 years. High Court has held that what Section 3 of the Act enjoins is that a tax shall be levied and collected at the rate specified for each fasli year and there is nothing to warrant the conten-tion that the demand cannot be made after the expiry of the fasli year to which it relates. High Court also held that no attempt had been made to say that the claim for tax for any particular year had become barred by time. We do not find error in the reasonings of the High Court.
5. The appeal is accordingly dismissed with costs.
1. Food Corporation of India (‘Corporation’ for short) is ag-grieved by judgment dated October 31, 1989 of the Andhra Pradesh High Court holding that Corporation is liable to non-agricultural land tax amounting to Rs.20,994.80 for the fasli years 1384 to 1397. The tax is levied under the Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963 (for short the ‘Act’). Before the High Court Corporation had challenged the order of the appellate authority under the Act confirming the demand issued for collec-tion of non-agricultural land tax for 14 years. The demand was raised by Palakole Mandal, West Godavari District, Andhra Pra-desh.
2. Two contentions have been raised before us: (1) Corporation is exempt from taxation under Article 285 of the Constitution and (2) assessment has to be made for each year and respondent No. 2 Palakole Mandal could not make assessment for 14 years on one go.
3. Corporation is constituted by the Food Corporation Act, 1964. In our Judgment in Civil Appeal No. 7054 of 1995 (Food Corpora-tion of India v. Municipal Committee, Jalabad and another), we have held that Corporation cannot claim exemption from taxation under Article 285 of the Constitution.
4. Under Section 3 of the Act for levy assessment on agricultural land has to be for each fasli year. If we look at the order impugned before the High Court confirming the demand for 14 years it is not that assessment was not made for each fasli year sepa-rately. It is only the demand which has been raised for 14 years. High Court has held that what Section 3 of the Act enjoins is that a tax shall be levied and collected at the rate specified for each fasli year and there is nothing to warrant the conten-tion that the demand cannot be made after the expiry of the fasli year to which it relates. High Court also held that no attempt had been made to say that the claim for tax for any particular year had become barred by time. We do not find error in the reasonings of the High Court.
5. The appeal is accordingly dismissed with costs.
