THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE B.N.RAO NALLA WRIT PETITION No.26418 of 2009 Dated:22.12.2009 Between: Prathima Institute of Medical Sciences. …Petitioner and Nagunur Grampanchayat, And another. …Respondents. THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE B.N.RAO NALLA WRIT PETITION No.26418 of 2009 ORDER: (per Hon’ble Sri Justice V.V.S.Rao) The petitioner is a private Medical College within the territorial limits of Nagunur Gram Panchayat. The first respondent assessed the infrastructure (college buildings and other structures) to property tax under the provisions of the Andhra Pradesh Gram Panchayat Act, 1964 (the Act, for brevity), and the statutory rules notified vide G.O.Ms.No.30, Panchayat Raj Department, dated 20.01.1995 (the Rules, for brevity). A bill/demand notice for payment of tax dated 06.11.2009 was issued demanding an amount of Rs.67,93,236/- for the years 2006–2009 and Rs.24,94,532/- for the year 2009–2010 (total of Rs.92,87,768/-). The tax demanded includes library cess as well. The petitioner was required to pay the amount within fifteen days from the date of receipt of the said notice. Assailing the same, the present writ petition is filed. Learned Counsel for the petitioner relies on Rule 9(1) of the Rules and contends that the demand of tax for the period beyond three years is illegal and impermissible under law. He also submits that no enquiry was conducted by the Executive Officer of the Gram Panchayat before assessing the property tax and the data collected behind the back of the petitioner was applied for assessing the property tax. He also disputed the rates of the property tax. Learned Standing Counsel for first respondent Gram Panchayat after obtaining instructions submits that the petitioner – Medical College is constructed in ground+four floors with a total plinth area of 9,03,013 square feet and tin sheds of 27,777 square feet. Secondly, he submits that the petitioner has not availed the effective alternative remedy of appeal and that the petitioner filed the instant writ petition to avoid payment of deposit of the property tax as a condition precedent for availing right of appeal. After hearing learned Counsel for the petitioner and the learned Standing Counsel for Gram Panchayat we are not inclined to go into the merits nor interfere in the matter, as the petitioner has an effective alternative remedy. The second aspect of the matter can be appreciated by reference to Rules 19, 20, 21 and 22 of the Rules, which read as under. 19. An appeal shall lie to the Gram Panchayat in respect of the assessment and imposition of the following taxes:- (a) the assessment and imposition of house tax under Rules 7 and 12 and the orders of the executive authority under Rule 11 upon a revision petition; (b) the imposition by the executive authority of a tax on any vehicle; (c) the assessment of a tax on agricultural land, the levy of which has been sanctioned by the Commissioner under this Act; 20. No appeal to a Gram Panchayat shall be heard - (i) unless it reaches the office of the Gram Panchayat before the date fixed for the payment of tax complained of; and (ii) unless, except when the executive authority otherwise directs on the ground of poverty, the tax in respect of which the appeal is presented has been paid or deposited at the office of the Gram Panchayat before the date referred to in clause (i); Provided that the Gram Panchayat may admit an appeal within fifteen days after the date referred to in clause (i), if cause is shown to its satisfaction for not preferring before the said date. 21. The Gram Panchayat may, of its own motion or otherwise, cancel or modify any order passed by the executive authority reducing or remitting a tax. 22. The assessment books shall be corrected in accordance with any orders passed by the Gram Panchayat on appeal; in the event of the amount of any tax being reduced or remitted by the Gram Panchayat, the executive authority shall grant a refund accordingly. Against any assessment and imposition of tax an appeal lies to the Gram Panchayat. An appeal can be filed within the date fixed for the payment of amount demanded. Such appeal has to be filed duly depositing the amount demanded unless the executive authority exempts on the ground of poverty. It is no doubt true that Rule 20(ii) of the Rules contains a mandatory stipulation that every person aggrieved by assessment made by the Executive Officer can avail appeal before Gram Panchayat only when the amount is deposited. In this case, however, the learned Counsel for the petitioner prays this Court to exempt the condition, as the amount demanded is huge and the petitioner is an educational institution. Having regard to the fact that the petitioner is running a medical educational institution, we are not inclined to exempt from the condition contained in Rule 20(ii) of the Rules. The demand of tax for the year 2006-2007 is also assailed on the ground that demand of tax beyond three years is not permissible. Having regard to this submission we are of considered opinion that if the petitioner is permitted to avail right of appeal under Rule 19 of the Rules by depositing Rs.41,00,000/- (Rupees forty one lakhs only) (roughly half of the demanded amount), ends of justice would be met at this stage. The petitioner has an apprehension that in the event of success in the appeal and further appeal to the Divisional Panchayat Officer, they may not be able to recover the amount from the Gram Panchayat. Therefore, we dispose of the writ petition giving liberty to the petitioner – Medical College, to file appeal before the Gram Panchayat along with a Demand Draft for an amount of Rs.41,00,000/- (Rupees forty one lakhs only). The Demand Draft shall not, however, be encashed for a period of three months. The appeal filed by the petitioner – College, within a period of ten days from today shall be disposed of by the Gram Panchayat within a period of ten days and thereafter, it shall be open to the petitioner to avail remedy under Section 128(2) of the Andhra Pradesh Panchayat Raj Act, 1994. In case such necessity arises, the Divisional Panchayat Officer should dispose of the appeal within two weeks so that the entire redressal mechanism completes within a period of three months. The deposit of the amount so directed shall abide by the decision of the Divisional Panchayat Officer. _______________ (V.V.S.RAO, J) ________________ (B.N.RAO NALLA, J) 22.12.2009 vs