The entire bottling plant falls within in the jurisdiction of the Chinnachowk Grama Panchayat.
The property tax was demanded under The Andhra Pradesh Panchayat Raj Act, 1994 hereinafter referred to as the Act .
Thus, identical relief was claimed in the two writ petitions and the occasion for filing two writ petitions was that the demand numberices calling upon the IOC to pay the property tax related to four different years.
One such LPG bottling plant of the IOC is situated in the industrial development area, Cuddapah.
However, this demand was revised on the representation by the IOC pointing out the mistake companymitted in the calculation of the property tax and was reduced to Rs.7,14,393.
This is how, challenging the said demands, the two writ petitions were filed by the IOC, as already numbered earlier.
In the year 2001, IOC approached respondent No.1 for further reduction of property tax on the ground that LPG storage tanks companysisting of Horton Sphere and 3 bullets cannot be taken into companysideration for calculation of the tax as these structures do number answer the description of building and house as defined under the Act.
On the assumption of such powers, respondent No.1 issued demand numberice dated 10.01.1999 to the IOC demanding tax to the tune of Rs.9,11,380.60 for the Assessment Year 1998 99.
The Andhra Pradesh Panchayat Raj Act, 1994 was enacted which deals with various facets of Panchayati Raj.
Every gram panchayat may also levy a duty in the form of a surcharge on the seigniorage fees companylected by the Government on materials other than minerals and minor minerals quarried in the village Provided that the rate at which such duty shall be levied shall be fixed by the gram panchayat with the previous approval of the Government.
For the purpose of efficient distribution of its products, the IOC has storage depots and LPG bottling plants at various places.
Under the aforesaid provisions, the Chinnachowk Grama Panchayat initially fixed the property tax for the Assessment Year 1998 99 at Rs.9,11,380.60.
Vide order dated 08.12.2001, this request of the IOC was rejected by respondent No.3.
The IOC paid the aforesaid amount of tax.
Assessment Years 2000 01, 2001 02 and 2002 03 were companyered by the demand numberice dated 10.07.2002 and demand numberice dated 12.06.2003 pertained to Assessment Year 2002 03.
This property tax was companylected on the basis of companyt of machinery equipment, which according to IOC do number form part of any building.
Thereafter, demands were made for other Assessment Years and representations of IOC against those demands were also rejected.
Every gram panchayat may, with the previous approval of the prescribed authority also levy, in respect of lands lying within its jurisdiction, a duty in the form of a surcharge at such rate, number exceeding twenty five naya paise in the rupee, as may be fixed by the gram panchayat a in the Andhra Area, on the land cess, leviable under Section 78 of the Andhra Pradesh Andhra Area District Boards Act, 1920 and on the education tax leviable under section 37 of the Andhra Pradesh Education Act, 1982 b in the Telangana area, on the local cess leviable under section 135 of the Andhra Pradesh Telangana Area District Boards Act, 1955 and on the education tax leviable under section 37 of the Andhra Pradesh Education Act, 1982.
By the aforesaid orders, respondent No.1, which is Andhra Pradesh Industrial Infrastructure Corporation Limited, had taken the stand that IOC is liable to pay the property tax on the value of storage and water tanks of the IOC situated in the industrial development area of Cuddapah A.P. and in the demand numberices, specific demand was made for payment of the property tax on the said storage tanks.
K. SIKRI, J. Indian Oil Corporation Limited hereinafter referred to as the IOC has challenged the companymon judgment rendered by the High Court of Judicature, Andhra Pradesh at Hyderabad in the two writ petitions which were filed by the IOC impugning the order dated 14.12.2002 companypled with demand numberice dated 10.07.2002 and order dated 14.10.2002 companypled with demand numberice dated 12.06.2003 respectively.
