Food Corporation Of India vs The Sub-Collector, Narsapur And Others
- SCC(1999) 6 SCC 80
- AIRAIR 1999 SC 2521
Ratio decidendi
The rule this decision rests on
1. A statutory corporation constituted under a Central Act cannot claim exemption from taxation under Article 285 of the Constitution merely by virtue of being a creature of statute. 2. Under the Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963, Section 3 requires that assessment be made for each fasli year separately, but this requirement is satisfied when assessments are made individually for each year even if the demands for all years are raised together; the raising of a consolidated demand covering multiple years does not violate the requirement of annual assessment. 3. There is no provision in the Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963 that prevents the demand for tax relating to a particular fasli year from being raised after the expiry of that year, provided the claim has not become barred by the applicable law of limitation.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Food Corporation of India ('Corporation' for short) is aggrieved by judgment dated October 31, 1989 of the Andhra Pradesh High Court holding that Corporation is liable to non-agricultural land tax amounting to Rs.20,994.80 for the fasli years 1384 to 1397. The tax is levied under the Andhra Pradesh Non- Agricultural Lands Assessment Act, 1963 (for short the 'Act'). Before the High Court Corporation had challenged the order of the appellate authority under the Act confirming the demand issued for collection of non-agricultural land tax for 14 years. The demand was raised by Palakole Mandal, West Godavari District, Andhra Pradesh.
Two contentions have been raised before us: (1) Corporation is exempt from taxation under Article 285 of the Constitution and (2) assessment has to be made for each year and respondent No. 2 Palakole Mandal could not make assessment for 14 years on one go.
Corporation is constituted by the Food Corporation Act, 1964. In our Judgment in Civil Appeal No. 7054 of 1995 (Food Corporation of India vs. Municipal Committee, Jalabad and another), we have held that Corporation cannot claim exemption from taxation under Article 285 of the Constitution.
Under Section 3 of the Act for levy assessment on agricultural land has to be for each fasli year. If we look at the order impugned before the High Court confirming the demand for 14 years it is not that assessment was not made for each fasli year separately. It is only the demand which has been raised for 14 years. High Court has held that what Section 3 of the Act enjoins is that a tax shall be levied and collected at the rate specified for each fasli year and there is nothing to warrant the contention that the demand cannot be made after the expiry of the fasli year to which it relates. High Court also held that no attempt had been made to say that the claim for tax for any particular year had become barred by time. We do not find error in the reasonings of the High Court.
The appeal is accordingly dismissed with costs.
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free