9911796707
|
Home
Issues Involved:
1. Whether non-agricultural land assessment is leviable only on the non-agricultural land which is actually used for the purpose mentioned in the Act or not? Issue-wise Detailed Analysis: 1. Whether non-agricultural land assessment is leviable only on the non-agricultural land which is actually used for the purpose mentioned in the Act or not? The petitioner, a company incorporated under the Companies Act, sought a writ of Mandamus to restrain the respondents from determining the Non-Agricultural Land Assessment (NALA) on the entire land of Ac.30-02 cents, arguing that the assessment should only be on the 2431.99 square meters actually occupied by the Cement Factory. The company had been assigned the land for industrial purposes by the Collector's proceedings dated 8-6-1985, and the factory was commissioned in May 1986. However, the third respondent assessed the entire land at 12 paise per square meter, amounting to Rs. 14,582.40, with an additional cess of Rs. 5,395.50, leading to the present writ petition. The petitioner contended that under the A.P. Non-Agricultural Lands Assessment Act, 1963, tax could only be levied on the land actually used for industrial purposes. The counter-argument by the respondents was that NALA is applicable to the entire extent of the land assigned for industrial purposes, not just the portion actually used. The Division Bench, referring to a previous judgment in The Associated Cement Companies Limited v. Government of Andhra Pradesh, felt that the interpretation of the Act needed authoritative resolution by a Full Bench. The main point referred to the Full Bench was whether NALA is leviable only on the non-agricultural land actually used for the specified purposes in the Act. The petitioner argued that the term "used" in Section 3 of the Act and the Schedule should be construed strictly, meaning the land must be in actual use for industrial, commercial, or other non-agricultural purposes to attract the respective rates. The Government Pleader contended that all non-agricultural land is subject to NALA, with the purpose of use determining the rate of tax, suggesting a broader interpretation of "used" to include land capable of being used or meant to be used. The court examined various definitions and provisions of the Act, including the definitions of "non-agricultural land," "agriculture," "commercial purpose," and "industrial purpose." The court also considered judicial precedents interpreting the term "used" in different contexts, including cases under the Income-tax Act and other statutes, which supported a broader interpretation of "used" to include land kept ready for use or meant to be used. The court concluded that a restrictive interpretation of "used" would lead to absurd results and frustrate the Act's objectives. It held that the term "used" should be given a wider meaning, encompassing land meant to be used, set apart for use, or readily available for use. Consequently, the entire extent of Ac.30-02 cents assigned for industrial purposes is liable for NALA, not just the portion actually occupied by the factory. The court overruled previous judgments that interpreted "used" restrictively and emphasized that the levy of assessment is on non-agricultural land, with the purpose of use determining the rate of assessment. The reference was answered accordingly, affirming that NALA is leviable on the entire extent of land assigned for industrial purposes, irrespective of actual use.
|
