LexTHE FEDERATION OF ANDHRA PRADESH CHAMBERS OF COMMERCE AND INDUSTRY AND ORS. ETC. ETC. versus STATE OF ANDHRA PRADESH AND ORS. ETC. ETC.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
--
THE FEDERATION OF ANDHRA PRADESH CHAMBERS OF
A
COMMERCE AND INDUSTRY AND ORS. ETC. ETC.
v.
STATE OF ANDHRA PRADESH AND ORS. ETC. ETC.
AUGUST 4, 2000
[S.P. BHARUCHA, SYED SHAH MOHAMMED QUADRI AND
N. SANTOSH HEGDE, JJ.]
Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963: Sections
B
2( d), ( g) and 3-Interpretation of.
C
Section 3-Non-Agricultural lands-Levy of assessment on-Land used
for any industrial, commercial or any other non-agricultural purpose-Levy
of tax on-Condition precedent.for-Held, there must be a.finding that the land
is in fact in presenti in use for industrial, commercial or any other non-
agricultural purpose-Land meant to be used or set apart for being used for
D
such purpose held not liable to levy.
Interpretation of Statutes :
Taxing Statute-Interpretation of-Should be construed strictly-Nothing
can be read into it.
These appeals have been preferred by some industries in Andhra
Pradesh and their Federation. The appellants contest the view taken by a
Bench of five Judges of the Andhra Pradesh High Court which interpreted
the word 'used' in the Andhra Pradesh Non-Agricultural Lands Assessment
Act, 1963 to mean "non-agricultural lands not only 'actually used' but are
'meant to be used' or 'set apart for being used'.
Allowing the appeals and setting aside the impugned order, the Court
HELD : 1. It is only land which is actually in use for an industrial
purpose as defined in the Andhra Pradesh Non-Agricultural Lands
Assessment Act, 1963 that can be assessed to non-agricultural assessment at
the rate specified for land used for industrial purposes. Section 3 of the Act
speaks of "land is used for any industrial purpose", land is used for any
commercial purpose and "land is used for any other non-agricultural
purpose". The emphasis is on the words 'is used'. For the purposes of levy
151
E
F
G
H
152
SUPREME COURT REPORTS
(2000] SUPP. 2 S.C.R.
A
of assessment on non-agricultural lands at the rate specified in the Schedule
for land used for industrial purposes, therefore, there has to be a finding as
a fact that the land is in fact in presenti in use for an industrial purpose. The
same would apply to a commercial purpose or any other non-agricultural
purpose. [155-E; 154-F]
B
c
D
E
F
G
2. A taxing statute has to be strictly construed and nothing can be
read into it. Having regard to the fact that the Act in question is a taxing
statute, no court is justified in imputing to the legislature an intention that
it has not clearly expressed in the language it has employed. [155-F]
S. V. Cement Ltd. v. Revenue Divisional Officer, Nandyal & Ors., (1993) 2
ALT 32; overruled.
The State of Bombay v. Automobile and Agricultural Industries
Corporation, Bombay, (1961) 1 ~ STC 122 and The Controller of Estate Duty,
Gujarat v. Shri Kantilal Trikamlal, [1976] 4 SCC 643, referred to.
Cape Brandy Syndicate v. Inland Revenue Commissioners, 9 (1921) 8
KB 64, referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1039 of 2000.
From the Judgment and Order dated 13.8.96 of the Andhra Pradesh High
Court in W.P. No. 13764 of 1987.
WITH
Civil Appeal Nos. 8828/97, 8836-37/97, 8838/97, 8839/97, 8840-44/97,
8849/97, 1064/98, 2236/98, 3271198 and C.A. No. 4390/2000.
C.S. Vaidyanathan, V.G. Pragasam, M.A. Chinnasamy, V. Shekhar, Ms.
D. Bharathi Reddy, A.T.M. Sampath, A.D.N. Rao and G. Prabhakar for the
appearing parties.
The Judgment of the Court was delivered by
BHARUCHA, J. Leave granted in S.L.P.(C)No. 2877 of 1998.
A Bench of five Judges of the Andhra Pradesh High Court interpreted
the word "used" in The Andhra Pradesh Non-Agricultural Lands Assessment
Act, 1963 ("the said Act") to mean "non-agricultural lands not only 'actually
H
used" but are 'meant to be.used or. 'set apart for being used'." This view is
-
FEDERATION OF A.P. CHAMBERS OF COMMERCE AND INDUSTRY•·. STATE-LBHARUCHA, I.]
153
contested in these appeals by some industries in Andhra Pradesh and, with
A
permission, by their Federation.
The said Act was enacted to provide for the levy of assessment on lands
used for non-agricultural purposes. Section 2(d) defines 'industrial purpose',
so far as it is relevant to these appeals, to mean "any purpose connected with
an industrial undertaking where the process of manufacturing any article .is
B
carried on with the aid of power ...... " 'Non-agricultural land' is defined by
Section 2(g) to mean "land other than the land usedExcerpt shown. Read the full judgment & AI analysis in Lexace.