THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION No.12968 of 2005 November 08, 2011 Between: The Depot Manager, APSRTC, Piler Bus Depot, Chittoor District ... Petitioner And The Gram Panchayat represented by its Sarpanch, Piler Gram Panchayat, Piler, Chittoor District And others ...Respondent THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION No.12968 of 2005 ORDER: (Per Hon’ble Sri Justice V.V.S.Rao) In the instant writ petition filed by the Depot Manager, Andhra Pradesh State Road Transport Corporation (RTC), Piler Bus Depot, Chittoor District, the challenge is to five house tax demand notices dated 14.2.2005 issued by the first respondent, namely, the Gram Panchayat, Piler. The case of the petitioner is as follows. RTC has bus station, garage and shopping complex at Piler. Till 1998-99, the first respondent was demanding the annual house tax of Rs.36,915/- per annum. For the year 1999-2000, the first respondent enhanced the property tax to Rs.2,83,796/-. The payment was challenge in two writ petitions being W.P.Nos.17209 and 17211 of 2001. Both the writ petitions were dismissed giving liberty to prefer appeals. Thereupon the petitioner preferred appeals to Gram Panchayat duly depositing demanded amount under protest. The appeals were rejected. It is alleged that RTC then made a representation to the third respondent. In the mean while, the Gram Panchayat issued five house tax demand notices for the period from 1998-99 to 2002- 03. This was followed by a final notice dated 31.3.2005 in which a consolidated demand for Rs.6,73,483/- was made. The petitioner would contend that RTC is a charitable institution which is not liable to pay the tax; the house tax demand was abnormally increased which is illegal and arbitrary; and determination of house tax based on Annual Rental Value (ARV) without taking into consideration vacancy remission is contrary to Section 61 of the Andhra Pradesh Panchayat Raj Act, 1994 (the Act). The second respondent filed counter affidavit on behalf of the Gram Panchayat. It is submitted that the properties of the RTC are liable for property tax under the Act. It was levied and collected annually along with the other houses of general public. During 1999-2000 a Revision Officer was appointed for assessment of house tax. After obtaining particulars with regard to details of ARVs from the Depot Manager, the tax was enhanced. As per the policy of the Government vide G.O.Ms.No.900 GAD (Accommodation-I), dated 17.6.1996 published at page 1440 of Andhra Pradesh Gazette Part-I dated 07.7.1996, the house tax has to be assessed based on ARV only. The appeal filed by the petitioner was considered and rejected. It is further submitted by the respondents 1 and 2 that after receiving the final notice dated 14.2.2005 the petitioner requested for vacancy remission. The same was granted for 2003-04 vide orders in Roc.No.119/2004 A2, dated 27.5.2005 and Roc.No.1/2005, dated 26.5.2005 for the year 2004-05. The petitioner is, therefore, required to pay house tax after deducting vacancy remission granted. The petitioner has not submitted any appeal to the third respondent and, therefore, final notice dated 31.3.2005 was issued. The exemption given to RTC from payment of income tax does not in any manner take away the liability to pay property tax for the commercial complex on which monthly lease amounts are collected. The proposed tax was assessed based on ARV as per law and the same does not in any manner contravene Section 61 of the Act. The Standing Counsel for RTC and the Standing Counsel for respondents 1 and 2 made their submissions reiterating the position in the pleadings. The plea for exemption from payment of property tax on the ground that RTC is a charitable institution is not seriously pursued. Indeed till 1997-98 the petitioner paid property tax without demur and admittedly their properties at Piler Bus depot were given on lease and, therefore, the plea does not survive. Whether the assessment of house tax based on ARV contravenes Section 61 of the Act? To consider this question, it is necessary to quote Section 61 of the Act. 61. House tax:- (1) The house-tax referred to in clause (a) of sub-section (1) of Section 60 shall, subject to such rules as may be prescribed, be levied on all houses in the village on any one of the following bases, namely:- (a) annual rental value; or (b) capital value; or (c) such other basis as may be prescribed: Provided that no house-tax shall be levied on poultry sheds and annexes thereto which are essential for running the poultry farms. (2) The house-tax shall, subject to the prior payment of the land revenue, if any due to the Government in respect of the site of the house, be a first charge upon the house and upon the movable property, if any, found within or upon the same and belonging to the person liable to pay such tax. (3) The house-tax shall be levied every year and shall, save as otherwise expressly provided in the rules made under sub- section (1), be paid by the owner within thirty days of the commencement of the year. It shall be levied at such rates as may be fixed by the gram Panchayat, not being less than the minimum rates and not exceeding the maximum rates, prescribed in regard to the basis of levy adopted by the gram Panchayat. (4) The Government may make rules providing for, - (i) the exemption of special classes of houses from the tax; (ii) the manner of ascertaining the annual or capital value of houses or the categories into which they fall for the purposes of taxation; (iii) the persons who shall be liable to pay the tax and the giving of notice of transfer of houses; (iv) the grant of exemptions from the tax on the ground of poverty; (v) the grant of vacancy and other remissions; and (vi) the circumstances in which, and the conditions subject to which houses constructed, reconstructed or demolished, or situated in areas included in, or excluded from the village, during any year, shall be liable or cease to be liable to the whole or any portion of the tax. (5) If the occupier of a house pays the house-tax on behalf of the owner thereof, such occupier shall be entitled to recover the same from the owner and may deduct the same from the rent then or thereafter due by him to the owner. A plain reading of subsection (1) of Section 61 of the Act would show that the Gram Panchayat is given option to levy house tax based on either ARV or capital value or such other basis as may be prescribed. A categorical averment is made in the counter affidavit that the Government issued notification vide G.O.Ms.No.900, dated 17.6.1996 prescribing the assessment of house tax on the basis of ARV only. This counter statement has not been controverted by the petitioner by filing reply affidavit and, therefore, it stands proved. Further to our mind the assessment of house tax based on ARV is more rationale and does not in any manner result in arbitrariness. Further while fixing house tax, details were obtained from the Depot Manager of Piler RTC depot and based on which ARV was determined for the purpose of assessing house tax. Insofar as vacancy remission is concerned, the Gram Panchayat made position clear that the petitioner is liable to pay the property tax after deducting the amount towards vacancy remission towards 2003-04 and 2004-05. Thus the grievance of the petitioner stands redressed to that extent and the contention now made is wholly misconceived. In the result, the writ petition fails and is, accordingly, dismissed with costs. ________________ (V.V.S. RAO, J) _____________________ (SANJAY KUMAR, J) November 08, 2011 YS