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PETITIONER: FOOD CORPORATION OF INDIA

       Vs.

RESPONDENT: THE SUB-COLLECTOR, NARSAPUR AND OTHERS

DATE OF JUDGMENT:       27/07/1999

BENCH: D.P.Wadhwa, M.B.Shah

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.

     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.

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