P RAMACHANDRAIAH Vs. COMMISSIONER

JUDGEMENT

(1.) The petitioners are owners of agricultural land admeasuring Acs.8.35 in S.Nos.486/2 and 487/1 of Hindupur. They made an application for conversion of the agricultural land to non-agricultural land which was duly granted. Later, they submitted a lay out dividing the land into eighty plots. Same was approved in 1992. As per municipal lay out rules petitioners donated land earmarked for roads, parks and for community purpose to the respondent Municipality. The respondent issued a demand notice dt.24.9.1996 under Rule 29(1) of Taxation Rules contained in Schedule II of A.P.Municipalities Act, 1965 (for short, the Act) read with Section 130 of the Act calling upon the petitioners to pay an amount of Rs.97,512/- towards vacant land tax. The petitioners were also informed that if they fail to pay the amount, they will be prosecuted in accordance with Rule 30(2) of the Taxation Rules. Assailing the said demand notice, present Writ Petition is filed contending that the same is not preceded by special notice as required under Rules 10 and 11 of Taxation Rules. The respondent filed a counter affidavit denying the allegations made by the petitioners. The respondent states that eighty special notices bearing Nos.11601 to 11680 were issued to concerned owners of the plots, and that they have received notices and in spite of the same they did not pay the amount. It is also stated that the petitioners have failed to pay the amount for the second half of assessment year of 1994-95, and first half of assessment year 1996-97.

(2.) In the reply affidavit filed by the petitioners, the receipt of notices bearing Nos.11601 to 11680 is denied. It is further stated that though eighty plots were laid and the plots were sold, petitioners are continued to be owners. Along with the reply affidavit, a bunch of notices issued under Rules 10 and 11 of Taxation Rules are also placed before this Court.These notices were issued on 10.10.1996 and therefore the impugned notice dt.24.9.1996 is clearly in violation of law.

(3.) It is no doubt true that it is competent for the respondent to assess vacant land to tax and collect the same.Before doing so, the respondent is required to follow the procedure contemplated under Rules 10 and 11 of the Taxation Rules. It is necessary to extract Rules 10(1) and 11 of the Taxation Rules, which read as under.