GUNDAPU MANIKYALA RAO Vs. VIJAYAWADA MUNICIPAL COUNCIL

JUDGEMENT

(1.) Same questions relating to taxation on property by the Vijayawada Municipality arise in these three writ proceedings. Writ appeals 465 and 421 of 76 are against the common decision of our learned brother Kuppuswami, J. in W.P.Nos. 384 and 1837 of 75 respectively. Since W.P. No. 1655/75 raised identical questions it has been directed to be posted with the writ appeals. The relief prayed for in the writ petitions is one of declaration that G.O.Ms. 225 M.A. dated 15th of June, 1973 and the assessments of property tax in pursuance of that G.O. made by the Vijayawada Municipality from 1-10-1973 are illegal, void and unconstitutional. The petitioners, who are rate-payers, also seek a direction to the state of Andhra Pradesh and the Vijayawada Municipality, who are the two respondents, restraining them from enforcing the provisions of the Andhra Pradesh (Andhra Area) District Municipalities Act, 1920 for the purpose of levying tax on property. The learned Judge refused to grant these reliefs. That is why the writ petitioners are before us in appeals.

(2.) In the first place, it is necessary to note the background out of which G.O. Ms. 255 M.A. dated 15th June, 1973 emerged. The Andhra Pradesh Municipalities Act, 1965 came into force on 2-4-1965. It will hereinafter be referred to as 'the 1965 Act'. The Andhra Pradesh (Andhra Area) District Municipalities Act, 1920, which will hereinafter be called 'the 1920 Act' had been in force earlier and was repealed by under Section 391 of the 1965 Act. Rules governing the transitional period were provided in schedule IX to the 1965 Act. Section 389 of that Act provides among other things, that in giving effect to its provisions it shall be read subject to the rules in Schedule IX. Rule 12 of the said schedule lays down that any tax, cess or fee, which was being lawfully levied or on behalf of any council at the commencement of the Act and which may be levied under the Act shall, notwithstanding any change in the method or manner of assessment or levy of such tax, cess or fee continue to be levied by or on behalf of the council for the year in which the Act is brought into force and unless the Government by general or special order otherwise directs, for subsequent years also. On 18th September, 1969 the Government issued G.O.Ms. 749 M.A. in exercise of the powers under Rule 12 directing all Municipal Councils to levy the property tax as per the provisions of the 1965 Act with effect from 1-4-1970. Due to administrative difficulties the contemplated revision could not be completed by 1-4-1970. The Government was, therefore, obliged to pass G.O.Ms. 293 dated 18-4-1970 directing the Municipal Councils to levy the property tax as per the provisions of the 1965 Act from 1-10-1970. However, by G.O.Ms. 81 M.A. dated 30th of January, 1971 the Government directed the Vijayawada Municipal Council to continue to levy the property tax under the provisions of the 1920 Act since certain rate-payers had filed a writ petition in the High Court and obtained stay. That G.O. was rescinded by G.O.Ms. 675 and the Vijayawada Municipal Council was directed to collect revised taxes under the provisions of the 1965 Act with effect from 1-10-1970. This later G.O.Ms. 675 was in its turn rescinded by G.O.Ms. 255 M.A. dated 15-6-73 whereby the Government ordained that the Vijayawada Municipal Council shall continue to levy the property tax under the provisions of the 1920 Act. Further, the said notification was deemed to have come into force from 1-10-1970. This is the manner in which the impugned G.O.Ms. 255 came to be issued. Accordingly, the Vijayawada Municipality continued to follow the provisions of the 1920 Act for levying and enhancing the property tax. This was challenged by the writ petitioners.

(3.) In one of the cases revision against the enhancement of taxes was filed and we are informed that no orders have been communicated to the petitioner. We are also informed that in another case there has been no such revision.