SUPREME COURT OF INDIA

Before:- D.P. Wadhwa and M.B. Shah, JJ.

Civil Appeal No. 8746 of 1995. D/d. 27.7.1999.

Food Corporation of India - Appellant

Versus

The Sub-Collector, Narsapur and others - Respondents

For the Appearing Parties :- S. K. Dholakia, P. A. Choudhary, Sr. Advocates, Yashank P. Adhyaru, U.A. Rana, Arun, Rajiv Kapur, Sanjay Kapur, Y. P. Rao, P. N. Puri, Ashok Kr. Gupta, C. K. Sucharita, K. Ram Kumar, G. Prabhakar, Ms. T. Anamika Advocates.

A. Constitution of India, Article 285 - Food Corporations Act, 1964, Section 42 - Property Tax - Exemption from levy of property tax on the grounds of being property of union - Food corporation cannot claim benefit of exemption.

[Para 3]

B. Andhra Pradesh Non-Agricultural Land Assessment Act, 1963, Section 3 - Property Tax - Non-agricultural land tax - Assessment of such a liability cannot be made for 14 years in one go - Assessment made for each crop year separately but demand issued for collection of tax for 14 years - Demand, not time barred.

[Para 4]

Cases Referred :-

Food Corporation of India v. Municipal Committee, Jalabad, Civil Appeal No. 7054 of 1995.

JUDGMENT

D.P. Wadhwa, J. - 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.

2. 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.

3. Corporation is constituted by the Food Corporations Act, 1964. In our judgment in Civil Appeal No. 7054 of 1995 (Food Corporation of India v. Municipal Committee, Jalabad), we have held that Corporation cannot claim exemption from taxation under Article 285 of the Constitution.

4. 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.

5. The appeal is accordingly dismissed with costs.

Appeal dismissed.