THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION Nos.20739 of 2003; 1786 of 2005; and 6957 of 2011 November 02, 2011 Between: Sri Sharada Gurukula Vidyalayam, represented by its Secretary-cum-Correspondent, G.Ram Reddy And others ... Petitioners And The Secretary, Gram Panchayat, Parkal (V) and (M), Warangal District And others ...Respondents THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION Nos.20739 of 2003; 1786 of 2005; and 6957 of 2011 COMMON ORDER: (Per Hon’ble Sri Justice V.V.S.Rao) This common order shall dispose of all the three writ petitions as the issue, which is no more res integra, is the same and the points urged in support of the petitioners are also same. The petitioner in the first writ petition, namely, Sri Sharada Gurukula Vidyalayam, was established in 1999. It offers school education from Classes VI to X and is situated in Parkal Gram Panchayat in Warangal District. The said Gram Panchayat issued a demand notice dated 04.10.2001 requiring the petitioner to pay an amount of Rs.16,215/- towards property tax for the assessment year 2001-02. Contending that the demand is contrary to Rule 5(c) of the Andhra Pradesh Gram Panchayat Rules, 1965 (promulgated vide G.O.Ms.No.282, PR dated 12.3.1965 by the powers conferred under Section 70 of the Andhra Pradesh Gram Panchayat Act, 1964) (hereafter, 1965 Rules), the writ petition is filed seeking a declaration that the demand of house tax by Parkal Gram Panchayat is illegal and unconstitutional. The petitioner in W.P.No.1786 of 2005 is a College of Engineering and Technology at Gollguda Village of Kesharajupally Gram Panchayat in Nalgonda District. Being aggrieved by the demand notice dated 19.3.2004 for an amount of Rs.50,596/- issued by the Gram Panchayat, the writ petition is filed relying on Rule 5(c) of 1965 Rules. W.P.No.6957 of 2011 is filed by the Andhra Pradesh Girijan Sevak Sangh, a Society statedly established for the advancement of Scheduled Tribes in Andhra Pradesh. They run College of Pharmacy, MBA and MCA besides vocational Junior College. For the assessment year 2009-10 Nandigama Gram Panchayat, the sole respondent, issued a demand notice dated 08.1.2010 for Rs.78,383/- towards payment of property tax. Being aggrieved, the writ petition is filed seeking invalidation of the demand notice placing reliance on Rule 5(c) of 1965 Rules. The Parkal Gram Panchayat through its Panchayat Secretary has filed counter affidavit mainly contending that 1965 Rules have no application after coming into force of the Andhra Pradesh Panchayat Raj Act, 1994 (the Act, for brevity) and the Rules framed under Section 268(2) of the Act vide G.O.Ms.No.30 PR & RD dated 20.1.1995 (hereafter, 1995 Rules). The point urged by the educational institutions derives support from the decision of the Division Bench of this Court in Vasishta English Medium School v Basinikonda Gram Panchayat[1] wherein construing Rule 5(c) of 1965 Rules which inter alia exempts the buildings used for educational and hostel purposes from Gram Panchayat house tax the Division Bench held as follows. The short question that arises for consideration is whether the buildings occupied by educational institutions are exempt from payment of tax under Rule 5 (c) of the Rules relating to levy of house tax. The A.P. Gram Panchayats Act provides for levy of house tax Under Section 70 of the Act. In exercise of the powers conferred Under Section 70 the Governor framed rules relating to levy of house tax. They were issued in G.O.Ms.282, PR dt.12-3- 65 (hereinafter referred to as 'the House Tax Rules'). By Section 276 of the A.P. Panchayat Raj Act, 1994 the A.P.Gram Panchayats Act of 1964 was repealed. Sub-section (2) of Section 276 of the A.P. Panchayat Raj Act provides mat on such repeal the provisions of Sections 8 and 18 of the A.P.General Clauses Act, 1891 shall apply. It may also be noted that Under Section 60 of the A.P. Panchayat Raj Act the Gram Panchayat has power to levy house tax. It is not in dispute that the above said rules framed under the repealed Act continue to apply. In 2005 another Division Bench of this Court doubted the decision in Vasishta English Medium School and the matter was referred to Full Bench. In Abyudaya Educational Society v Kanumalla Gram Panchayat, Prakasam[2] having regard to Sections 60 and 61 of the Act while observing that, “once an Act is repealed, everything relating to that Act gets extinguished as if that Act never existed on a statute book, unless repealing Act provides otherwise”, held that the judgment in Vasishta English Medium School is a judgment per incuriam. It was also observed that the educational institutions or persons running such educational institutions in Gram Panchayat areas are not entitled to any exemption under the Act insofar as the assessments which pertain to post 1995 period. Relevant observations of the Full Bench are as follows. The position, however, changed after the Panchayat Raj Act of 1994 came into operation. This Act came into force on 26th of April 1994. Section 60 of this Act gave powers to the Gram Panchayats to levy house tax and other taxes. Section 61 prescribed the mode and the basis on which the taxes could be collected and Section 61(4) gave powers to the Government, providing with the power, inter alia, of the exemption of special classes of houses from the tax. Virtually, the provisions in the old Act and new Act as far as powers of the Government relating to grant of exemptions are concerned, remained same. But Rules framed under the new Act did not give any exemption to any special classes of houses from the taxes. This is settled law that once an Act is repealed, the Rules framed thereunder or regulations made thereunder, or any other notifications issued thereunder, also stand repealed. However, the case of the petitioners as projected by learned Counsel is that immediately after the new Act came into being, G.O. Ms. No. 378 was issued by the Government on 28-6-1994. It is stated that this G.O. was issued by the Government in exercise of powers conferred by Sub-section (1) of Section 268 of the new Act read with Section 18 of the Andhra Pradesh General Clauses Act, 1891 (hereinafter referred to as 'the General Clauses Act). This G.O. merely states that the Rules framed under the earlier Act i.e., the Gram Panchayats Act of 1964 would remain in force till new rules were framed. Admittedly, the new rules were framed by G.O. Ms. No. 30, dated 20-1 -1995. There is no dispute that from 26th of April 1994 till 20th of January 1995, the rules framed under the Gram Panchayats Act of 1964 continued to apply even after the Act had been repealed by virtue of this G.O. But after the new rules came into being, the old rules could not be applied. In view of the Full Bench decision which is binding on us the plea taken by the petitioners relying on Vasishta English Medium School is unsustainable. Section 61 of the Act is a charging section which empowers Gram Panchayats to levy house tax on all houses in the village. Sub- section (4) thereof confers the power on the Government, by making Rules, to provide exemption for special classes of houses from the tax. It is not the power conferred on the executive of the Government to pass orders in specific cases. It is the power conferred on the Government to make Rules exempting certain classes of buildings. If so advised the petitioners, in these cases, may approach the Government seeking exemption. In the result, subject to above observations, the writ petitions are dismissed. In the circumstances of the cases, we make no order as to costs. ________________ (V.V.S. RAO, J) _____________________ (SANJAY KUMAR, J) November 02, 2011 YS [1] 1996 (3) ALT 553 (DB) [2] 2006 (6) ALD 1 (FB) : 2006 (5) ALT 767 (FB)