M/S. ELECTRONICS CORPORATION OF INDIA LTD. ETC. ETC. versus SECRETARY, REVENUE DEPARTMENT, GOVT. OF ANDHRA PRADESH AND ORS. ETC. ETC.

Citation: [1999] 2 S.C.R. 1078 · Decided: 05-05-1999 · Supreme Court of India · Bench: S.P. BHARUCHA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

B 
M/S. ELECTRONICS CORPORATION OF 
INDIA LTD. ETC. ETC. 
v. 
SECRETARY, REVENUE DEPARTMENT, GOVT. OF 
ANDHRA PRADESH AND ORS. ETC. ETC. 
MAY 5, 1999 
[S.P. BHARUCHA, B.N. KIRPAL, S. REJENDRA BABU, S.S. 
MOHAMMED QUADRI AND M.B. SHAH, JJ.] 
C 
Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963 (as 
amended by Act 28/I974)--Ss, 2(j) 3 & I2. Non-Agricultural lands 
assessment-Company registered under Companies Act-Land leased out by 
Union of India for commercial and industrial purpose-Non-agricultural 
assessment-Demand Notice-Validity of-Held, by virtue of amended 
D definition of 'owner' under s. 2(j) appellant-Company is the owner of land-
Hence liable to non-agricultural assessment. 
E 
· Retrospectivity-Non-agricultural assessment-Levy-Amendments in 
the Act-Effect of-Held, amendments have no retrospective effect-No 
liability to pay for any period prior to the amendment. 
Constitution of India, I950 : 
Article 285-Property of Union of India-Exemption from payment of 
tax-Company registered under Companies Act-Lessee of land belonging to 
Central Government-Shares of the Company wholly owned by Union of 
F India-Liability to pay non-agricultural assessment-Held, Company 
registered under Companies Act is a distinct. legal entity from its share 
holders-Not entitled to claim exemption--Andhra Pradesh non-Agricultural 
Lands Assessment Act, I963 : Ss.2(j), 3 and 6. 
Article 285-Andhra Pradesh Non-Agricultural Lands Assessment Act, 
G I963 :· Ss. 2(j) & I2-Whether ultra vires the Constitution ?-Held, No. 
Administrative Law : 
Promissory estoppel-Applicability of against Statute-Company 
registered under Companies Act-Lessee of the land belonging to Union of 
H India-Imposition of Non-agricultural assessment-State Government's letter 
1078 
ELE.CORPN. OF INDIA LTD. v. SEC. REVE. DEPTT. GOVT. A.P. 
1079 
stating that no notification necessary for exempting units run by Government A 
of India in Public Sector-Effect of-Held, no estoppel against a Statute-
Letter does not Promise exemption to Companies having distinct legal entity, 
though shares are wholly owned by Union of India-Doctrine of promissory 
estoppel not applicable. 
Interpretation of Statutes 
Reading down a provision-Held, could be resorted to only if it is 
found that the provisions are ultra vires as they stand. 
Words & Phrases: 
B 
"Owner"-Meaning of in the context of S.20) of the Andhra Pradesh C 
Non-Agricultural Lands Assessment Act, 1963. 
Appellant--Company, registered under the Companies Act was a lessee 
of certain lands belonging to Union of India, for commercial and industrial 
purpose. The definition of "owner" under S.2(j) of the Andhra Pradesh Non- D 
Agricultural Lands Assessment Act, 1963, was amended inter a/ia to include 
a lessee of land owned by the Central Government or a State Government if 
the land was leased out for a commercial, industrial or other non-agricultural 
purpose. Consequently, respondent No. 1, Revenue Department issued a 
notice demanding non-agricultural assessment from appellant-Company on 
the leased land. Appellant-Company disputed its liability on the ground that E 
the property belonged to Union of India and thus by virtue of Article 285 of 
the Constitution, there was a bar on imposition of tax. High Court held that 
Article 285 was not attracted and that the State Govt was entitled to levy non-
agricultural assessment. Hence the present appeals. 
On behalf of the appellant-Company it was contended that the property F 
and shares were wholly owned by the Union oflndia and therefore, there was 
a bar under Article 285 from imposing any tax, including non-agricultural 
assessment; that the letter dated 17.10.1967, written by the State Government 
that no separate notification was required for exempting the land from 
payment of non-agricultural assessment under the Act so long as the units G 
were run .by the Government of India in public Sector amounts to a promise 
and the State Government was estoppel from going back upon it; that Article 
285 was intended to protect public revenues; that the shares of their Company 
fully owned by the Central Government was of public funds; it was, therefore, 
necessary to read down the provisions of Ss. 2(j) & 12 of the Act to excfode 
therefrom all but private owners and lessees of land. Partly allowing the· H 
1080 
SUPREME COURT REPORTS 
[1999] 2 S.C.R. 
A appeals, this Court 
· HELD : 1.1. The appellant-Company registered under the Companies 
Act is a distinc
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