ANANTHA KONDAYYA SETTY Vs. COMMISSIONER KURNOOL MUNICIPALITY

JUDGEMENT

(1.) In this Writ Petition the Andhra Pradesh Urban Areas Surcharge on Property Tax Act (XIII of 1958) (hereinafter referred to as the Act for the sake of brevity) is challenged as being unconstitutional and ultra vires. This Act directs the Municipal Councils of Andhra Pradesh State to levy surcharge on property tax on certain buildings.

(2.) The petitioner, a resident of Kurnopl town, owns forty seven buildings within that Municipality. He was paying yearly property tax of Rs. 4,130-12 Nps. On 18-4-1959 he received a notice of demand for payment of Rs. 413-01 Nps. as surcharge on the tax paid by him for the year 1958-59. The petitioner immediately filed this petition under Article 226 of the Constitution questioning the validity of this Act.

(3.) The primary contention urged on behalf of the petitioner is that it is not within the competence of the State Legislature to make law empowering .he Municipality to levy a tax on the property tax payable under the provisions of the Madras District Municipalities Act. According to the learned counsel the relevant entry in List II of (he Seventh Schedule to the Constitution does not authorise the State to enact a law enabling the Municipalities to levy tax on the tax imposed on buildings and such a legislation is covered by Item 92 of List I of the Seventh Schedule. We are not convinced that there is substance in this contention. Item 49 of List II of the Seventh Schedule assigns the subject of "taxes on lands and buildings" to the State Legislature. Therefore it is prima facie within the legislative competence of the State Legislature to make all laws on the topic relating to taxes on buildings.