YADLAPATI VENKATESWARLU Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) This appeal by special leave is from the common Judgment of the High Court of Andhra Pradesh dismissing two writ appeals and a writ petition. The Andhra Pradesh (Andhra Area) District Municipalities Act, 1920 (hereinafter referred to as the 'old Act) was applicable to Vijayaw%da Municipality of Andhra Pradesh and property tax was levied under that Act. The Andhra Pradesh Municipalities Act, 1965 (hereinafter referred to as the new Act) came into force on 2-4-1965. Section 2(11) of the new Act defined "council" to jnean "a municipal council constituted under this Act." Section 391(1) of the new Act repealed the old Act. Section 389 of the new Act provided:-

(2.) The result was that tax lawfully levied and continued to be levied under the old Act had to be continued unless the council by resolution determined such other rate from time to time, and unless the Government by general or special order otherwise directed under the transitional provisions. On 18-9-1969 the Government of Andhra Pradesh issued G.O. Ms. No. 749 M.A. in exercise of its powers under the' aforesaid R. 12 of Schedule IX directing that all Municipal Councils, shall with effect from 1-4-1970 levy the property tax as per the provisions of the new Act. But due to certain administrative difficulties the revision could not be completed before 1-4-1970 and the Government, therefore, issued G.O. Ms. No. 293 M.A. dated 18-4-1970 directing the Municipal Councils to levy the property tax as per ine provisions of the new Act from 1- 10- 1970. By another G.O. Ms. No. 81 M.A. dated 30-1-1971 the Government directed the Municipal Council of Vijayawada to continue to levy the property tax under the provisions of the old Act as certain rate payers had filed writ petition in the High Court and obtained stay. However, by G.O. Ms. No. 675 M.A. the G.O. Ms. No. 81 was rescinded and the Vijayawada Municipal Council was directed to collect revised taxes under the provisions of the new Act with effect from 1-10-1970. This latter G.O. Ms. No. 675 was in its turn rescinded by G.O. Ms. No. 255 M.A. dated 15-6-73 whereby the Government ordered that the Vijayawada Municipal Council shall continue to levy the property tax under the provisions of the old Act and that G.O. was to be deemed to have come into force from 1-10-1970. As a result the Vijayawada Municipality continued to levy and enhance the property tax under the provisions of the old Act. It may be mentioned that under S. 82 of the old Act property, tax was levied on the basis of gross annual rental value, whereas under S. 87 of the new Act the basis of assessment in owner occupied building was the capital value thereof to be determined in the prescribed manner.

(3.) The G.O. Ms. No. 255 dated 15-6-1973 was challenged by house property owners in the High Court in two writ petitions under Art. 226 of the Constitution of India seeking writ in the nature of mandamus or order or direction restraining the Vijayawada Municipal Council from enforcing it and declaring the same illegal and void. It was inter alia contended before the learned Single Judge that by earlier G.0s. the Government having directed that taxes should be levied under the new Act, the transitional power under Rule 12 had been already exercised and the power to levy any tax under the old Act therefore ceased and it was not open to the Government to rescind the previous orders and re-direct taxes to be levied under the old Act. That contention was accepted observing: