The High Court · 2025

Order

This writ petition is filed declaring the action of respondent No.2 in insisting the petitioner to prod.uce the l,and Conversion Certificate (LCC) through impugned notice vide Roc.No.CL/67912OL4, dated LL.O6.2O14, though the subject land was earmarked for residential purpose by regularizing the lay-out after receiving necessar5r fee, as illegal, arbitrary, and without jurisdiction.

2. Heard Sri Anantha Kesavan, learned counsel representing Sri Venkat Reddy Donthi Reddy, learned counsel for the petitioners on record and Sri Sridhar Rao, learned Standing Counsel for respondent No.2.

3. When the matter is taken up for hearing, learned Standing counsel appearing for 2'd respondent represented tkrat the issue involved in the writ petition is squarely covered by the orders passed by the Division Bench of this court in K.satgo;nolnda Patna;ik and others a. rrgdera.bad tlrban Detrelopment Authorityr wherein the Division Bench of this court held that; l pro1:y ALD 600 (DB) I I 2 nAs ute houe onfuTrrcd the ammon order dated. 2g.o4.2o1o, u)e are inclilrcd to di.spose of u.trit pefifions as follous: (a) It slwtl be ompetentfor tlrc urban Deuelopm.ent Authorities or the l-ocal Autlarities, as the case mag be, to insist on submission of dearane/permission und.er the 20o6 Act as a ondition preedent for relea"sing of tayouts, and. P) fue land tw,s been put to non-agrianltural use before tlrc 2006 Act came intofore, such clearane/permi.ssion stnll not insi.sted. (c) conaersi.cn of land. into Non-agriatrtural use und.er the prouisiotts of Act 3 of 2oo6 is necess ary euen if t?E lar"d. is couered by master Plan ard. sanction of layout by the Deuelopment Authoity under the prouisions of act i of ig7s." 4- Learned Standing counser for respondent No.2 would submit that in view of the aforesaid order passed by the Division Bench of this court, the petitioners have to submit NALA certificate and therefore, the writ petition is liable to be disposed of in terms of order passed by the Division Bench of this court in K. S atg o:no;ndq. P o;tnc;ik (cited sup ra). 5- l.earned counsel for petitioners did not dispute the submissions of learned standing counsel that the order passed by the Division Bench, squarely applies to the present writ petition. 6- Accordingly, the writ petition is disposed of in terms of directions issued by the Division Bench' of this court in I 3 K.Satganolnda Patnolik (cited sr,tpra). There shall be no order as to costs. Miscellaneous petitions pending, if any, shall stand closed. SD/- A.H.S. GOWRI SHANKAR ASSISTANT REGISTRAR G SECTION OFFICER //TRUE COPY// To, Khammam Telangana Depa rtment, Secretariat Hyderabad, Tela ngana

1. Ih" Principql Secretary Municipql Administration Urban Development 2. The Commissioner, Office of the Municipal Corporation, Khammam, District 3. The Regional K.U.D.A. 4. One CC to 5. One CC to SRI SRI I

6. [oPUCI Two CCs to GP FOR MUNICIPAL ADMINISTRAT|ON AND URBAN DEVELOPMENT ,High court for the state of relangana, at Hyderabad tourl

7. Two CD Copies (Along with a annex copy of the order w.A. No. 702 oF 2010 AND w.p.No. 8666' OF 2008 and batch)w HIGH COURT DATED:08/09/2A25 ORDER WP.No.20622 of 2014 {i () 21 il0\J 2025 * * DISPOSING OF THE WRIT PETITION WITHOUT COSTS \ HON'BLE THE ACTING CHIEF JUSTrcE D|LIP B. BHOSALE AND HON'BLE SRI JUSTICE S.V.BHATT 't095I2013. W.A.Nos.7W&10.7411N10.712frN1O.781il)10.747m1o.7s4m1a.7s1t201o- 7*,12IJfi- lUW,mOr 1',it7 m1O. 7063m1O. 7t lN)1 | _ 97 t2O1 1 - 443m17. 1337 tmt2- 53tst2015. ,9612012. W.P-Nos.8566r2m8. 1e722m8. 164972m8. I7(XYl/2fit8. 18tt122m8. $|nmL 1,,7'9i6timB. 2468;tfim8. fin?3,tz0,J,,- wP 2'tgllM,ima. 28ts.4A120,J8. 97?J,2UXI- 1260t2qp. 3893doo9. 8t27run9. 6442flt9. 6564I2m9. 765ttX2m9. &t392009. 93682009. 94042mO. EX)8/2fi)9. 18151/2(m. 18/r64l2mo. 934/2010. 254512010. 23t69/2OlO. 309!1912010.325:lt/2010.291312011.3t08r2011.664312011.673012011. @5812011.7472011. 7476t2011. 81ft3tn11- %Ntm1l. 9915t2011. 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XI74t20t4- 303,}/tm14.4231t2074.5321tn14- fi55t2014. il17 m14- 7Wt2014- 79[3m14- 8€4pt2014. WnOnO14,. 9f18,Jt2014. 9{,53tmt4. %ilt2014. 97nm14- %fr,nofi. 1m69t't21c14. 11157tN14. 11ffii8t2014. 1232Wm14. 12ffitm14. 12ffifim14. 12f.70t'i2014- 133fif2o14. 13791tn14. lffiilzJ14. 152fi8n0fi- 154ilfr2014- 1il73fm14. 154'nm14_ 156I,,J,n14. 15744tX)14. 16/573t2014. 17(J0E!2014- 77212fin14. 1751512014- 17588t20't4. 18:!59/2014. 18858/2014. 19061/2014. 191632014- 19171/2014- 192a1 t'.t201 4- 19A?2t2014. 2law'n1 4. 21Um/2014. ?249/M201 4. 21559 t i201 4- ?.32g9,/?IJ1 4. 2419il1n14. 24327t'.12014. 24t920m14. 25119'im14. 2567412014. 259,J,'t2014. 2642U2014. N2:2112{J14- M8t2014. N1!1m14. %7iltxt14. 288,51t2014. 29ZAA814- 2926/0,t2014. 310d€m1 4- 324z,,m1 4. t3515fim1 4. 34657 m1 4. U698t201 4. 3/l735,/,n1 4 - 3,-73AEM 4- 348t88t2014. 35191nOU. 3#%t,n14. 35559im14. 4G)70tm14. 41ts9t2014. 420f201s- 873fim15. 476,1aJ15. 19'r6/,J15- 1*An15. 2113t2015.2237tn1s.3035t2015- 3419tn1s. 37561m15- 3857/2015. /t55312O15. 5't64t2015. 5234/2015. 5974m15. 60362015. 6620/2015. 669012015.6959/2015.7219/2015. 7392015. 7't03l2015. 7866/201s. 8s2312015. 8!t9512015. 87tt6l2015. 876612015. 88752015. 8898X20t5. $8912015. 94lili/20rs. 94922015. 9639X2015. 97AUn15. 10710m15. 111'm,t2,015. 11193m15. 112191m15. 11452fr2015. 12451f2015- t2764/2015. 128!t1/2015- 12941/2015. 1383120t5. 13788x2015. 1385912015. 1/t69OX2015. 1561ff1015. 1561612015. 16(D1t2015. 18279/2015. 1862i1/2015 and 1,,,571P.O15. '3889/2013. COMMON ORDER: (Pq tblw Sti Justice S.v.Bhatt) Through this common order, we propose to dispose of writ appealsAvrit petitions involving common questions of law. The batch of writ appeals, is directed against tre common order dated 28.04.2010 in W.P.No.26688 ot 2OO7 and the batch. leamed Single Judge disposed of ttre batch of the writ petitions by holding as foltows: By the order dated 28.04.2010, the " a) lt shall be competent for the Urban Devetopment Authorities, or the l-ocal Authorities, €rs the case may be, to insist on submission of cleararrcey'permission under the 2006 Act as a condition precedent for releasing of hyouts; and b) lhe lard has been put to non-agricullu.al use beforo the 2006 Act came into force, such clearance/permission shall not be insisted." The 2006 Act relerred !] is tle Andhra Pradesh Ag.icultJral (Conv€rsion lor Non- Agricult ral Purposes) Aci, 2006, which shall be hereinafter called and relened to for short "Act 3 of 2006". The prayeE in he batch ol writ pelitions seek d€claEtion that fie petition lands which are pan of a zonal development plan undea fie Andhra Pradesh t rban Areas (Development) Act, 1975 (for short'Act 1 of 1975") are outside the purview of Act 3 ot 2006 or that he tetter issued by lhe urban Development Aulhority calling upon the petitioneE b obtain 'No Objection Certilicate'/ Clearance unde. Acl3 ol2006lor considering layout apptication, as iiiegai. wiihoi.it jurisdiction and unconstitutional. ln lhe instant balch. the following queslions arise for consideration under the Act 3 of 2006 and the Acl 1 of 1975. i. Whal is the scope and ambit ot Act 3 of 2006 and Act 1 ol 1975, in panbutar, lhe scope. purp,ose and elfect oa payment of Conve6bo Tax and Development Charges urder these Acts? Whether the U'ban Deveiop(nent Authority to. consftreratih ard sanctil2o of la!,out plans submitled by a developer o, a propeny covefed by Dgvelop.nent Phn, can msist upon sutmission ot No Otiection Cert'licate/Cleararrcs lrom the Revenue Divisional Oflicer under Act 3 ot 2006lor processirE an applicalion filed for tayoul an oval? Whelher it is necessary to get land corverted into Non-Agricultural use once il is covered by Devel@ment Plan and arter the sarrclion of layoul by lhe Urban Develogner Authority? Hea.d Mr. M. V. Durga Prasad, Mr. P. Prabhakar Rao, Mr.Ajay Reddy, learned counsel, Mr. V. Venkataramana and Mr. B. Adinarayana Rao, leamed senior ctunsel fo. apFellanb/ petilioners and the leamed Advocates General lorhe States of Telangana and Andhra pradesh. For convenience, we refer to the averments in Wdt Appeal No.702 ol 2010 arising oul ol W.P.No.26688 of 2007 and the relerence to lhese allegalions is sufficient lor understanding lfre circumstances under which the questions of law arises for decisron. The leamed counsel apf,earing lorall the pariies advanced argufl€nts on fie questions lramed above. The case ol appellants in Writ Appeal No. 702 o( 2010 is that the appellanb are lhe absolute owners and possessors ol the land in Survey No.24ZPai, 244lPat1 and 245lPart olBahadurpalli Village, Khuthbullahpur Mandal, Ranga Reddy Disrid. Thc appellants claim dght and title to fle said poperty through registered sale deeds dated s;# 'I I .03.2005, 28.05.2005, 03.062005, 04.06.2 OOS aN 2Z-I2.2OOS. The appelrants under Section 1 2 of Act 1 of I 97S, appliod b tle Hyderabad Urban D€velopment Audiodty/t sr .espondent for conversion of land rhe cornpetenr auno,ity *roush issued dratt notificatjon calling for objeclions against ptoposd change of us€. The request of appellants ,or change of land use was accepted hrough G.O.Ms.No.2g7, Municipa, Administation and Urban Development (t) Department dated 30.05.2006. The appellanb applied under S€clions l3 and 14 of Act 1 of i 975 lor sandion of layout for the petilion land. ;:#"i":::"#il'::* o4.os.2oo6 The tsl respondent ca ed upon the appellanb to pay devetopment charges of Rs.44,'t 0,S82l-. The levy of development charges is under Sections 27 and 29 o, Act l of 1975. Ofl 15..tI.2007, he appsllants paid a sum of Rs.44,lO,S8Z- towards development charges as demanded by lhe U6an Developmenl Authority. The tsr fespondenuuban Development Authodty through Letter No. 766/Mp Ztptanningt H12006 dated t 1.11.2007 ca ed the appellanb b produce 'No objecrion certificate' (Noc) rron he oisiicto non-asricurturar pupo." . 0,""." i'lT,lri;ffi ,:ffi ,',", _rHTil:: T" appellanb challenge the instant letter on rrarious ractJal and legalgrounds. B.iefry stated, the case of I sr respondent, as reflected in fle counter al,idavit. is that as an authority und6r Act I of 1975, the .tst respondent is concemed witi the development of an area covered by master plan2onal development plan as per the purpose specified herein. The Isl respondent admib receipt of Rs.44,l0,S82/. towards development charges. As far as the av€rmenb in letter dated ,1.1t.2007, the ,sr respondent replies that the condilion 2006 is insisted upon as per ,," *:1TI,H.T::::T:",:::ff: Pradesh. The lst respondent alleges &at Acl .t of 1975 cannot be understood as overdding Act 3 of 2006. tt is stabd any or he pu@oses sra* ,*", -".::#'Jlffi::'"";1#ff;;: prescripl,ons ot Ac{ 3 o, iOO6 and Act I o, f 97S. ln otter wordls, it is trle case o, I sr respondent that he anount paid under Act 1 o, i97S is bwards development charges and under Act 3 of 2006 one time tax is payable and the tax is imposed by R-D.O ,or conveGion ol agricultural land br non-agdcult/ral pueos€s. TheretoG, according to I sr respondent Acb i of .t97S and g of 2()06 operate in dirferent spheres and dhe nolillcations o, @nversion o, land lbr devslopment putpose cannot be equated as conveGion o[ agriculirral land ,or non.agricultural purpose under Act 3 of 2006. The .tsr respondent prays lor dismissal of w.it petiton. The 2d respondent in fieir counier affdavit states that the provisions of Act 3 of 2006areapplicableandbindingonapersonintendingtoconvertagricultr.rrallandfor non.agriculturalpurposeinspiteofanyorder/notificationunderActloflgT5.ltisthe case ol 2d respondent that the payment of development fee under Act lollgT5iStoanauthorityconstitutedunderActlollgT5andthislevyisinthenature ol fee collected towards development charges by the specified authority' The development charges are payable in terms ol applicable regulations made under Act 1 oflgT5andthepaymentdoesnotexoneratetheappellanbfromthelegalobligationo| conversion tax under Act 3 ol 2006' The 2d respondent lurther states frat under the Andhra Pradesh Non-agricultural LandAssessmentAct,lg63(forshort.Act14otl963'),theGovemmentwasauthorized to levY non-agriculturallandtaxuponconvetsionoiagriculturallandintonon.agriculturalland. UnderActl4ollg63,lheauthoritieswei.eauthorizectocollectnon.agriculhrrallandtax tromapersonwhoputsagriculturallandfornon.agriculturaluseorpurpose.Thepower orauthorityunderActl4ollg63toimposeNon-AgriculfuralLandAssessment(l.lALA) Taxoniandactuallyusedlornon-agriculturalpurposeandthelandtobeusedfornon. agricultura|purposewaschai|engedinabatchofwritpetitionsandlheprinciplewas finally decided by the Supreme Court in Federation ot A'P' Chambers of Commerce and rndustry and others vs. state or A.p.H For ttre purpose of examining and interpretingAct3ot2006.inourviewthelawdcclaredbythesupremecourtin FederationofA.P.chambers,caseisusefulandlelevantportionofjudgmentreads thus: "7. lt is trite law that a taxing statute has to be str'rctly construed and nothing can be read inlo it' ln the classic passage from Cape Brandy Syndicate which was noticed in the judgment under appeal' it was said: "ln a taxing Act one has to look merely at what is cleady saiJ' There is no room tor any intendment' There is no equity about a tax' There is no presumption as to a tax' Nolhing is to be read in' nothing is to be implied' One can look fairly at the language used"' Thisviewhasbeenreiteratedbythiscourttimearrdagin.Thus'inThe StateotBombayv.AutomobilearrdAgriculturallndustiiesCorporation, Bombay 1961 12 S T C' 1 22' this Court said: But the courts in interpreting a taxing statute will not be justifred in adding words th€)relo so as to make out some presumed okiect of the Legislature ' lf the Legislature has failed to clarify its meaning by the use of appropriate tang'age' the benefit thereof must go to the taQayer' lt is settted law that in case of doubt' that interpretation of a taxing statute which be adopted. is benelicial to the learned Counsel drerv our atlenuon to 8. On behatf ot lhe respondent-State' the judgment of this Court in The Controller of Estate Duty' Guiarat v' Shri Kantllal Trixamtal . That iudgment also is to the same effect and does not avail the respondents. lt said: The sweep of the Sections which will be presently set out must' therelore *o.* be inro'nod by .ne rangu"ne actua y usod by tt,. regisrdu.g. of coiJrse, ir he wo.ds canoot apdy o any reconoile spec.i:s Jip" -" , "ir* "anro, supply ne{v logG or inveot unnatural sense ,,rfn ,f," unexprqssed a.d unstabd wbhes of U,le legishfurc 9. We are in no doubt rvhaterrer, fierelore fd it is orJy land Mich is actualv in use fo. an industrial purposs 35 6s6ngd * 0".",* O", *, ff ::,#"Iiffi;:fl ;x"m*rmffiffi ,rtr rhe iudgmsnt under cha,tenge l" ,nt"n"ur". tii,u ,Jai" il" ,*, ,*, the sail Acr is a taxrp stat e, - "*n i. i*iJi-ir-#n ,o ," tesistaturo an intentioo rhat ir has no( cteaily;;;;;.in.ml#gra" ,, " "an has employed.. The State Legislature takir Federarono,A.p.cn",o"o.""lllnoj"#ff-"';1T:L:ffij:::; legistation. repeated Act 14 of .t963 and enacisd Act 3 o,2006. Therefore, in his bactground, it is the case ot 2d respondent hat he payme under Act 3 0f 2006 is one time payment o, tax to, conversion o, ag.icultJral land br non-agricultural purpose, instead of levy and demand o, NALA Tax for every Fasiti under Act .14 ot 1963. Th€ amount levied and collec,ted under Act 3 of 2006 as by its very nature a tax levied by t\e State fo. convsrsion o, agdcultJral land ,or non-agnculturat :I:::".:::#"ffi ',"i"1,T"::::,:J:"A"T:?ff :::ffi :"T":" According Io respondent Act t of 1975 and Act 3 o, 2006 adl turrher sta,ed rhat he s". o**".Jll"[l ::;::: ;:T;:"::ffii:::# the difterent authorities who grant permissions under Ad I of .t97S issued note Nos.84(r5Ar'&E-D_3l2OO7), (g7tN&E_O}/Z0OZ) and 03S /&E_D3/2007) dated 28.05.2007 to insist upon production of N@rclearance from R.D.O under Act 3 of 2006. whire conside.ing sanc0on of layout appmvars, he instant note cafls upon Ihe vice- Chairmen of Urban Development Authodties b insist upon production of NOC hom auhodty (RDO) under Act 3 o, 2006. The .espondenb pray lor dismissal ol the writ pelitions. The ,eamsd counsel for appeltanhrhgtitioneB contend Olat Act I of 1975 and Acl 3 of 2006 cover fte same subject matter and thes6 Acts are o\rerlapping. Therefore, in application of Ihese enacrllenb. he well established principles of interpretaton as taid dOWN iN ALLAHABAD BANK V. CAT{ARA BANISI, SURESH XI TOI V. CEF. ASHOK MARKETTNG Lti TED v. PUNJAB NATTONAL BAIdSand KsL & INDUSTRTES LrlllTED v. aRtHAt{T THREADS LMmDE are to be appried and comptiance with the requiremenb I * ol 1975' satisfes fte requirement of due conversion of agdcurtrrrar ,"n, a'no"' o' tie non-agdcultural pu,oses The "n' insistence upon crearanceNoc *r' R.D.O is u/t? uir"s and in suppon of this ' proposition, the appellants place reliance on SUBASH KUMAR LOHADE VS THE SPECIAL OFFICER, MUNICIPAL CORPORATION OFHYDERABADEI' I iS contendedthattheimportofboththeActsisoneandttresame.Thewords.conversion' and 'change of land use' used in these enactments are used in fte same sense' The learned counsel lurther contend trat he non obstante clause in the special enactment viz., Act 1 0f 1975 has oveniding ellect on the provisions of Act 3 0f 2006 and that the operation of Act I ol 1975 excludes firstly the operation ol provisions of Act 3 ot 2006 in a notified urban area and secondry the conversion tax under Act 3 of 2006 amountstodoubletaxation.Thelearnedcounselfurthercontendthatevenassuming without admitting that rand conversion tax is payable, the scheme of Act 3 of 2006 provideslorexpostfactopaymentolconversiontaxloruseollandlornon-agricu|tural purposes.Theretore'theUrbanoevelopmentAtrttroritiescannotcalluponapplicantsto obtainNoC|.ornsreRevenueDepartment.Theconditionprecedentimposedbyhe Urban Development Authority for consideration ol layout approval application is arbitrary and withoutiurisdiction' The learned counsel appearing tor the appellants place strong 28 and 29 of Act 1 of reliance upon Section 2(e)' (i) (oi anci (p)' Sections 3' 5' 7' 13' 27 ' 1 975 to contend that the area covered by Act 1 of 1 975 is comprehensively governed bv Act 1 of I 975 and none else' Theappellantsrelyupontheregu|ationsissuedbytheDevelopmentAuthorityfromtime totimeunderActloftgT5toillustratetheircontentionthattheleepaidunderActlot lgT5isinfactaconversionlee.ByvirtueofissuanceolanotificationunderSectionTof Act3of2006,thelandsusedlorsuchnotiliedpurposesareexemptedtromAct3of 2006andthereisnoneedtopaylandconversiontaxtoGovemment.l.heappellantsin supportoltheircontentionunderSectionTolAct3ot2006relyuponthenotiftcation st respondent for institution of use or any development use under Act 1 of issued by the 1 lgT5.lnotherwords'thesubmissionotleamedcounseltortheappellantsisthatoncea notificationunderActlollgT5isissuedpermiuingchangeoflanduse,applicationol Act 3 of 2006 is excluded to such notified land' ltisfinallycontendedthattheNoCcannotbeinsisteduponfromRevenueDepartment andtherequirementiswithoutauthorityandamountstoarbitraryexerciseofpowerby the 1 st resPondent' Ontheotherhand'learnedAdvocatesGeneralappearingforUrbanDevelopment AuthoritiesinrespectiveStatescontendthatthechallengetoimpugnedletteris unloundedandthatareadingofprovisionsotActloflgT5and/orAct3ot2006by and liable lo be- Leigtled - in limini. According to the learned Advocates General' imposition ot conversion of land tax on land used for non-agricultural purpose should not be confused with either development charges paid to an authority or change ol land use permitted through a notificaton under Ad 1 o, t97S which is br a dirfsrent purpose and has nothing to do wih he payment of land conversion tax under Act 3 oI 2006. According b fiem, he appe ants are comptetety ignorlng he legistative history o, Act .14 of 1963 which was repeared hrough Act 3 0f 2006 and hs scope and ambit of re€nacfinent viz,, Act 3 0f 2006. The object and purposes of Act 1 0f .1975 and/or Act 3 0f 2006 arc distinct operate in dilrerent spheres and tiere . o overlapping ol subiect matter as @ntended by fie appe,anb. Srong reliance on "d A"r 3 or:;o':;:rJr,"'tr;HT;;,;fil revy under Act 14 or,s63 '14 ot 't 963 NALA Tax was levied ,or a Fasli (year) upon usage ot any rand for non-agricurturar puposo. The Govemment was levying and demanding NALA tax lor use of fhe total extent of agdcultural land for non- agricutturat purpose and however levy ol NALA Tax under Act I 4 of 1 963 on account of ratio of Federation ot A.p. Chambers,case was restticfed b he 6xact extent ot land used by an occupier ror non-agricurlurar pupose. The Govemment, wih a view to addressing the basis of adiudication in Federation o, A.p. Chambers, case and also in the place ot annuat levy ot NALA Tax, € Act 3 of 2006 providing for impositon ot conve*ion tax ,or use or non-agricultural purpose. r"r r.n:n:l "gri"rrt According to the respondenb, the levy and demand of conversion tax under Act 3 pment charges paid under secrion 14 read According b the rearned counser, the contenrion ot 2006 is difterent and distinct from with seclions 27 Io 29 of Act t or .r9z raiseor on secrion 7 0f Act 3 0t 2006 ror secron 7 dears wirh staturory ",j;::ffi;1"1:frH"ffi:J#'; in the Seclion and grant lurlher exemption to a class ol lands fiom the application of Act 3 of 2006. Therelore, acmding to the counsel' tl. notification' even if issued' under Act I ot l97s has no appricarion to craim exemption from eiher payment of convecion Tax or applicabili$/ of provisions of Act 3 *" ljillt r,t#:: lffi ::"T"ff::,:"; namery rhat rhe Acts a," exception for levy and demand of cont ,aken. rhe rea.ned Adv@ate """":,T:;l:::Tiffiff"lITL J decisions in Firm Ram Knlhne Ramnath Aganral y. Secretary, unichaf commlnee, KampGe E, ,,v"J"in 8.". ,. the Unlon ol lnrlla@, Kerval Krlshan pud v. State ot punlhlg, covind Sara "**n -.",:;':;::# "T ffi ;,1:: rax@ and Municip, Ltd., Derh#X. The leamed Advocates Generat p.ay ,or dismissal o, fte "","n"n appealgpetittons. ln order b appreciate fte conbntions raised by the padies, it would be necessary to refer to history' scope/obiect and salient teatures ol Acts 14 ol 1963, 3 of 2006 and I ol 1975 The salient leatu'es are examined with the assistance of basic aids of interpretation of statutes and to determine whethet these enactments operate in the sarne sphere or not' The repaal ol Act 14 ol 1963 and enactnent ol Act 3 o12006: As already noted, the levy oftax on agricultural land for non-agdcultural use was introduced through Act l4 ol'1963' Th6 Tahsildar under Section 3 of Act 14 ot 1963 was authorized to levy non-agricultural land hx for use of agricultural land lor non-agticultutal purpose As per Section 3 of Act 14 ol 1963 NALA tax was levied lor ditferent puPoses at the rates specified in the schedule appended to the Act The assessment ol tax is lor Fasli (yeao and NALA Tax was levied lor the use ot agricuitural land lor residential, commercial anci industrial puFose' as thg case may be Section 4 ol Act l4 of '1963 empowered d,le Tahsilda( to deteimine and Ceinand NALA tar for non- agricultrrral use of agricultural land ln Fedenfbn ol A.P' Chambers' case' the Apex Coui has laid down me pn law mat l\l^Lh 6^ !o .^- ^.- h6 laviA.l .rnlv on the land actually used lor any of he purposes .nciple oi ^ specified in schedule oi Act 14 of 1963, but not on entire land owned by an occupier' The sequel ol Federation o' A'P'Chambers' case illustratively stated that the ass€sseo who possesses an extent ol Ac lO-00 for running an industry is required to pay NALA Tax only for the extent ol land actually used lor non-agriculturat purpose viz ' Bulldings, Factory ancillary facilities and not on vacanl land held as adiunctor otherwise b tle main puPose of establishment by he occupier' The principle ol law laid down in Federa0on ol A.P.chambers case was narrowed down the application ol Act 14 ol 1963 in recovering NALA Tax Therefore' Act 14 of 1963 was repealed hrough Acl 3of 2006. The Statement of Obiecb and Reasons of Act 3 ol 2006 reads hus" The Andhra Pradesh Non-Agricult'ural Land Assessmer( Act' I 963 pro/ides for lhe levy of assessmed ol lards used for Non_agrbultural pu'poses' The "Non-agricunural land" as delined under Se'tion 2(g) of lhe Act' means Land other lhan the land used exclusivety for lh€ _purpose agriculture but does not include the land used exclusively for (i) Catde sheds (ll) hay ricks' Section 3 ol the Act' is the charging sectioo accordlng to tle areas lherein The ScMule sets out lhe rates - r ard (ates indicated in the Schedll€ olassessmentpelsqf.Mtr.ollandUs€dPerFasliyear(a)lorirdustrial purpose;(b) lor commercial purpose; and (c) for any othet Non-agricultural purpose including resi'ential purpose' The High Court ol A'P in S V Cemeds Ld' vs R DO' Nandyal and lhe word "used recuring in Section 3 others (1993 (2) ALT 32) interpr€ted and lhe Schedule ol the said Act mqms not only acually used but alsc means any land meanl lo be used or set apart lrom being used' O^ appeal' the Apex Cou't in the Federation ol A-P Chamber ol Commercc and lndustry and oftors vs state ol A P ' (C A No 10392000) :n t 08 2000 hetd tlat it is ooty the land which b actualy in use for an i4dustrhl Arrpose as deltned in lhe Ad utat can be assessed to nofl_ ro, ralla *J ,", r.,*^r"t 3I13..T"T"r*t ar rhe rate specifi€d punoses. tf tho Supreme CoiJrt orders are imptem*rd O, "*r,* ^iil lhe de.nand wifl go down to 75% ot the btat demand- . The Govemment have evolved Neu lrdustrial policy ard o(dsrs lll,_yt "r".ndrn 0t{4-2000 to 3i-g-2005. "n*,.*, rhe Ardj'ra "#fi ;;ilffi;ffi^:"3"I:#H, ?rffi ,X present fom and to inho(fuce levy in lur 11*T"1, il ,,." ;; ;;':";'# "ff:",':"ffJ f ftH",T perc6nt) of ths basic varuo of the hrrd inG" AccordirEly, Goverfinent have dec a{ lndusrfl.at unirs ,rom tev, at the rate ot lo% (rgn *o* rin conveEion by undedaking a specific leqislation. " This Bi[ seeks to give erfecl b th; above ecision., The statement ol obiects and reas 2006 is to regurate lhe conversion of matte* connected therewith or ,n",o"lnn"''''"' provides for rspearing Act 14 o, 1963. v. irzapur lroti Kureshi Kassab Jamat ulility ol statement ot objects and reasons i reads hus: rons cleady shows Ihat the enadnent of Act 3 of land to non-agricurtural purposes for ntal therelo' The prea'nbre o, Act 3 of 2006 Hon'ble Sup.eme Coud in Sfab ol Gurarat -he and olhers@ laid down [le inte.p.etalive n clnstuing a statute. The relevant ponjon *";:ffiIfl "#;:::il:l:1.ffi."il:HH;ffiHff ,fl statute. ard the evil wh srared in the preamuo aJlHr:H"r:T.:ffi, j.;:.TJ; #"ff io any tegistation are evidence of tho tegis,ative;*r;.';;;#_* thoirght p.ocess ot the cosnizance or ne preva *Hf JT"T:['[TdLtr,ffi , #;Ii * A statute is Ihe highest constjtulionat formulation of law. " "r,"o o"n'"'"t'"' The means by which the Supreme Lr '*r fulrest deribsrations, expresses ib fioar wir. A crear disrinct on enactment by the res,","",". .,*"*,"lljl;"ilH1:l ,,#;:"J:"ff, ot an enactnent and simultaneous maniresrs an intention incomparibre ;;"ffIT-:i"J;:,:: ffTHj; provisions ol the re-enacled enactment is examined. T h tore' lhis court while inte,reting the scope and ambit etc., or Act s ot zooo must o( mind the law subsisting wh€n Acr 3 ot 2006 has come into ope.aton. , is desirabr imperative to go hrough ole then existing "nd tegislation, if any, and ou,",n ,o undeGtanding vis-a-vis Act 3 of 2006 and the necessity tor fresh dectarafon of law by the Siate Legislature. Thus viewed, Act 14 o, 1963 has been io forcs ftom ,963 ti[ 2 was paid ror non-asri"rrtur"r r"" or "g;,forJn': ;H;:::1il::"#: A.P Chambe6's case has resticted the tevy and demand of NALA tax only b the actual use of agricultural land for non-agricultural purpose by an as"""""" ,n0". *" * ",""r" and not on th€ total agricultural land held by an occ{lpier br non-agricultural purpose' Theefore,thestateLegislafurewithaviewtoremovinghedifrqJltycausedbythe decisioninFede6llonolA.P.chambers,repgaledAct,l4ot1963andenactedAct3 of 2005. lt is not tle case ol appellanb that between 1964 and 2006 NALA tax was not levied by he Tahasildar lor the utban properties notified under Act 1 ol 1975 The levy ol non.agriculfurallandassgssmenttax,howevel'wasimposedlrom,1964till2002.2003 and development charges were recovered as and when application under Section 14olActlol.lgT5wasmadelorgrantofpermissiontotheUrbanDevelopment Authodty. TheprBambleandheshorttjtleofheActclearlysuggestthatAct3ol2006is repealing Act 14 ol 1963 and the Act 3 of 2006 is intended to regulate the conversion ol agricultu6l land tc non-agdcultural purposes Act 3 of 2006 regulates conversion of agriculunl land for non-agriculturat purposes and levy ottax lor such conveGion of land is provided lor under Act 3 ol 2006 Section 2(a) ol Act 3 ol 2006 delines agriculture as raising any crop or garden produce: or orchards or pastures or hayricks and Section 2(br defines agricirltural land as land used lor agriculture' Under Section 2(c)' the word conversion means change ol land use trom agricultu'al to non-agriculural purposes' Non-agdculural land means - land olher than the agricuiiurai land Section 3 impcse: restdctiononconversionolagdcutturallandtonon-agriculturalpulposewithoutpiioi permission ol the competent authority' The procedure for obtaining permission is covered by Section 4' and the Act authorizes g(ant of regulalion ol conversion ol land and one tme lcw and coliection ol non agdcultJral land tax. From the scheme o[ the Act' it is evident that penalty is provided lor delault in payment of NALA tax and colleclion of land conversion lax with line at 50?" oi NALA tax. Every owner or occupier ol agriculture land is under obligation to pay conversion Ex at the rate o197" for use ol agriculturalland lor non-agricultural purposes' ThescherneolAct3of2006firstyisaonetirneimpositionoftax,whilerequlatinglhe conveGion ol agdcultural land to non-agricultural puQoses The tax is payable to the Govemment and the object and intendment ol Act 3 of 2006 thus is regulation of land clnversion and irposition ol tax lor such land @nve6ion The leamed counsel appeadng for the appellants conlend that with fle issuance Act I ol 1975, exemption under section 7 ot ol a notificztion unds sectron '12 ol Act 3 of 2006 is available to lhe nolified lands under Act 'l ol 1975' and no land conv€Eion tax need be paid under Act 3 ot 2006' ln olher words' it is contended trlat with the issuance ol a notification by the Govemment lot chanqe of developrflent use' here is aubmatic conveEion ol agricultural land for non'agricultural use and hereby fhe applicabil'ty of Act 3 ol 2006 is exempted ln suppott ol this submission, some of the appellants rely upon land use notilication issued under Section TofActloflgT5orpaiicularchangeoflandusepermifledthroughindividual notifications issued underSection r2 0f Act 1 0f 1975. According to the leamed counser for appeilants, he preparation and finalization of master pran and zonar deveropment plan under Act 1 0f 1g75 0r issuance of a notification under section 12 0f Act 1 0f 1g75, by legar fiction deemed change of tand use is occasioned and again the tevy of tax for conversion of land use is unavailable. The submission does not stand to the scrutiny of literal interpretation of Section 7 of Act 3 of 200G. . Section I ot Act 3 of 2006 read as follows: Act not to apolv to certaln landsi Ilothing in this Act shail appty to_ (a) Lands owned by the Slate Govemment . (b) Lan<ts as the land is not used for commercial purposes : (c) Lands used lor religious or charitable purposes ; (d) Lands used by owner for househord industries invorving kaditionar occupation, rlot exceeding one acre ; (e) Lards used lor such other purposes as may be notified by the Govemment from time to time: (f) LanOs used ,or Aquaculture, Dairy and poulrry.la bf a local authority ,* ,"* lor any communal purposes so long Section 2 (d) (xi) defines notification thus: xi) .Notitication,means the word .Notified. a notilicalion published in the Andhra pradesh Gazette; and shall !s 66ns1rusd accordingly The riterar construction of section 7 0f Act 3 0f 2006 exempts rands owned by the State Govemment; he local authority; lands used for communal puposes ancl so tong as he lands are not used for commercial purposes; land used for religious or charitable purposes; land used by owner of househord industry invorving traditionar occupation not exceeding one acre. A few inbuirt or staturory exemptions are provided in the section dealing with exemption. Through clause (e) of Section 7, poweris conferred on the Govemment to excrude apprication of Act 3 0f 2006 for rands used for such other purposes, as may be notified by the Government from time to time. section 7 (e) of Act 3 of 2006 confers power on the Govemment to consider issuance of a notification under section 7 0f Act 3 0f 2006, incruding a category of agriculturar rand ftom operation of Act 3 0f 2006- stated in simple expression, the Government may under section 7 0r Act 3 0r 2006 issue a notification exempting a category or class of rands from the apprication of Act 3 0f 2006. rn orher words, the master pran or zonar deveropment pran/individual change of user notifications issued under Act l of 1g75, wiil not exempt the appricabirity of Act 3 0f 2006. Therefore, the notification even, if any, issued under Act 1 0f 1975, cannot be either contended or by necessary imprication understood as excruding application of Act 3 0f 2006. For tre above reasons, the contention urged under by relying on Secton 7 (e) of Act 3 0f 2006 is without merit and is accordingly rejected. Act t975 (Act I ot 19751: The leamect counsel for appellants by placing reliance upon the scheme of Act 1 oflgT5contendsthatfirstlythecomprehensivedevelopmentinanotifiedareaunderAct loflgT5istakencarebyActlollgT5andwjthtreissuanceofnotificationunderthis Act,thechangeofuseriselfectedandnofurtherconversionofagriculturelandcanbe envisagedorpaymentotlandconversiontaxwouldarise'Ontrecontrary'thelearned AdvocatesGeneralappearingforrespondenlscontendthatthesetwoenactmentshave distinctpurposesandthatlevyoflandconversiontiaxunderAct3of2006isbywayo{ taxatthetimeotconversionofagriculturelandfornon-agriculturepurposesandlevyof developmentfeeunderActlotlgT5isfordevelopmentuseolnotifiedland,particularly atthetimeofdevelopmentofpoPertyinthenotifiedarea.Thedevelopmentfeeispaid totheUrbanDevelopmentAuthority,whichisvestedwiththeresponsibilityofoverall developmentofurbanarea.WeproposetoexaminethesalientleaturesolAct,tofl9T5 and answer these issues' TheoreambleotActloflgT5StatesthatActlo|lgT5isenactedtoprovidelor thedevelopmentofurbanareasinthestateofAndhraPradeshaccordingtoplanand iormattersancillarythereto.Frcmthepreamble.itisevidentthatActloll9T5is intendedtoprovidelordevelopmentolnotifiedurbanareasaccordingtothemasterolan and tor matters ancillary thereto' We proceed to interpret the relevant provisions ol Act 1 ol 1975 by reading the languageofStatuteasitis.Thewordsemployedinthestatutearegivennafufaland ordinarymealringandthatbyharmoniouslyconstruingalltheimportanrsa6|i6p59flhe Act, the scheme of the Act is determined' Section 2 (e): 'clevelopment' with its grammatical variations means the catrying out of all or any ol the works contemplated in a master plan or.zonal devetopment plan relerred to ln this Act' and the carrying out of buildinq' engineering, mlning or other operations in' on' over or under land' or the making ot any T iterial change in any building or land and includes redeveloPment: ProvidedthatlorthepurposesolthisAct,thefollowlngoperationsoruses ollandshallnotbedemedtoinvolvedevelopmento'thelandthatistosay. The carrylng out ol any temPorary works tor the rflainlenance' improvement or otiet-alteration of any building' belng works which do not materially aflect the external appearance of the building; The carrying out by a local atrthority ot any temporary works requlrad for the maintenance or lmprovenrent of a road' or works carried out on land within the boundarles ol the road; rne carrying out by a local authority or statutorv-und:i:T:,:t -' ternporary wortJlor thg purpose ot inspecting' repairing or renewing any serYers, mains, plpes, cables or other apparatus' including the bteaking open of any street or other land lor that purpo3e; The use ol any bullding or other land within the cartilage Purpose incidental to the enioyment ol the dwetllng house as such; and The use oi any land for tho purpose ol agriculture' gardening or forestry(including afforestation) and the use for any purPose specilied in lhis clause ol tnf ouitding occupied together wlth land so used" (0 (ii) (iii) (iv) (v) section 2 (e) derines deveropment as carrying out ar or any works contemprated in (l) mastsr plan, (ll) zonal devsto rEnt plan refered io Act I of 1975 and devetopment means carrying out building, engineoring, mining or othe. operations in, on, over or Under land. Developmant means making any matedal change in any building or tand ard re{evelopment Through proviso, the following acts are nd Ueated as dovslopment br the puposes of he Act Temporary wod(s whic fi do not materially affecl Ihe appearance ot the a) building b) Carrying out the works within he road alignment. c) Bepai6 b sewers and drains eb. d) Any ancillary work caried out for use of any building or e) Use of land foragriculture, gardening or foresty purposes. caflilage. The detinilion ot Ihe word devel on he oher; a rew acriviries *"rr, ".'":;t;::""ffJ::jffi":,,ff ": excluded f.om fte meaning ofdeveropment- such excrusion is provided b avoid undue hardship in carrying outa tew activities in a notfed a.ea. Sedion 2(fl:deve,opment area, , areas.recrad ro be a ;*".r;;H::"?, fi]X:l il Section 2 (0 defines development area as urban area or group of urban areas ll:::,#":::,ffi"1"",j1T;1"1"*" " t',"",ff:",::"" declaEd under Section 13(t) ofAct I ol any urban areaorsro,, o,u."n sub-sedion (l) of Section 13. ",""" S€ction 2Io|:,urban area, means.- 0) (it) tie a,ea comprlsed within the iurisdir Hvderabad * ;, ;;; ;;;;,1;'Nrcrion ;;;J# Itrunicrparities ^": cor*n.ot ."yl,"rr";*;;1"Tl urb z",ron or rhor ";; ;;;;;r"f behalr, by rrcliflcatior, * or Ihe Municipa' corpo'atioo ot under the andhra Prad€sh such area in the vicihirv as thc exte ot, and the scope ror, rhe -' -"'-' ''Evant considetations' specify in thls toct other area as the Governmeot may, by nolirication, declare to be an uhtch in rhe opinton or rhe coye.nmenq *-,ike-|v-;; ::6tituled , ffi_x1, section 2 (o) corrers Municipar corporation o r Hydeabad ot any area clvered by any municipality constitjbd under &,re Andhra pradesh Municipalitjes Act, I 965 bgehe. with such area in he vicinity of fte Mu Corporation or municipalitv' as he case may be, which has he pot"nti"t to, urU"l *n,* nlj'il"l:ffi:::H:suins norircarion dedars any area as u*" ","" Secllon 2 ,pl: .zone, *;;il; ;;; ;;frI ;I.:X,,.l* rneans a "1';:T;,lli:, :li::,il: Section 2 (p) means zones as one of f|e divisions of development area divided forthepurposeofdevetopmentunderthisAct.Thedivisionsofzonesare.residential. commercial, industrial etc' "" (2) The Master Plan shalF Sectlon 6: Clvic survey of and Master Plan lor development area:' (1) The may be' carry out a clvic survey of and prepare a Authortty shall, as *oi Master Plan for the development area concerned' (a) detine the varlous zones into whlch the development area may be divided lor the purposes or i"'"top'n"nt and lndicate the manner in which the land in each zone is proposed to be used (either after carrying out daveloprnent thereon or otherwisei and the stages by whlch any such developrnent shall be carried out; and (b) serve as a basic pattern ol lrame'work withln which the zonal development plans ol the various zones may be prepared' (3) The Master etan may provlde lor any other matt$ which is necessary Ior the proper development ol the developmenl area' Section 7: zonal development plansl (1) Simultaneously with the preparation otMasterptanorassoonas-maybetheteaftertheAuthorityshallproceed with the preparation ol zonal development plan tor each of the zones inlo which the development area may be divlded' (2) A zonal develoPment Plan maY'' (a) contain a site plan and land use plan lor the development ol the zone and sholr, the approrimate locations and extents of land uses ptoPosed in the zones lor such purposes as roads, housing, schools, recreation, hospitals' industry, business, markets' public works and utilities' public buildings' public and privata open spaces and other categories of public and private (b) specily rhe standards ol population density and building density; - l aer show every area in the zone which may' in the oplnion of the Authority' be required or declared {or development or tedevelopment; and (d) in particular, contain provisions regardlng all or any of the following matters, namelY- (i) the dlvlsion ol any 3ite into plots lor the erectlon ot buildings: (ii) the auotment or reservafion ol lands lor roads' open spaces' gardens' recieation grounds, schools, markets and other public purPoses; Section 6 obligates conduct ol civil survey and preparation of master plan for developmentareai.e.urbanareaorgroupofu,banareasdeclaredunderSectionl3(1) olActlollgT5.Thez.onaldevelopmentareat,akescareolvariousdevelopmentplans envisaged in master Plan' -of Section 13: Declaration ol development areas and development ot land in thos€ and other ateas:- (1) As soon as may be atter the clmmencement ot this proper Act, where Government conslder it nec6sary to do so tor purposes development ot any urban area or group ol urban areas ln thls State they may' by notification, declare such urban area or group ol urban areas to be a development area for the purposes of thls Act' (2) The Government may' by notilication and ln accordance with such rules as maY be made in this behatl- (a) exclude lrom a development area any area comprlsed therein; or (b) inctude iri devef o-pmeOfarglanfother-arce'- (3) Save as otherwise provided In thls Act' the Authority shall not undertake or carry out any ctevelopment of land in any area which is not a developroent area. (4) After the commencement of this Act' no development of land within the development area shail be undertaken o incrdrng any departmenr o*he "";fl;1iil":r;:l5::T trl dorcropment has been obtaaned in writing trom the Authority ln accordance with the provisions of thls Act. (5) After the comlng lnto operatlon of any of the plans in any area wathin the deveropment ariea, no deveropnrent sha, be undertsken or ca*ied out in lhat a.ea unless such development ls also in accordance with such plans. (6) Notwithstandrng anythrng in any orher raw or the provisions contained in sub'sections (4) and (5), deveropment of any rand undertaken in accordance rrlth any law by any person or body including any departmenr o, the Government or any rocar authority betor" th" "on,,o*r".n,"ni or iii" a"t, ."y be tompleted without compliance with the requirements ot those sub- provrded rhat such deveropment of rand sha, be compteted within one year from the date of commencemeil o, this Act; unless itre nuttrority tor good and sufficrent reasons, extenos tie saict period of one year for such ,urther perlod as lt deems fit. (4 After the commencement of this Acl, no devetopment of tand shall be undertaken or carried out by any person o, OoAy including any department oI the Government rn such area aajoining to or in the vicinity ot the deveropmenr area' as may be notitied by the Governrnent unress approval of or sanction ror such developrne{rt has been obtained in writing from the rocat auttrority concerned, in accordance with the provisions of rerevant raw rerating thereto, including the law relating to town pianning for the tirne being in force and the rules and reguhtions made thereunder provided that the toca, authorlty concerned may, in consultation with lhe Authority, rrame or suitabry a.end its regurations in their apprication lo such area adloining to or in $re vieinity of the dlvelopment area. 8)(a) Itrhere any part ot the area adjorning to or in the vicinity of the deveropment area' as notified under sub-section (7), is in the process of rapid deyeropment or rs rikery to deverop in the near ,ulufe, the rocat authority concerned shall, either on the direction of the Governrnent or on the advice of the Authorlty, prepare ln consultation with the Authority, town planning scheme under the taw ferarng to Town planning, for the time being in rorce, and pubrish the schemes as required under that raw and submit thern ro the Government for sanction. (b) Any deveropment in the area @vered by such town pranning schemes ;ff[f"[ffi::"nce with the provisions o, the schernes "" ""r,L,on* oy @ where in regard to the mafters specified in sub-section(7) and o, rhis sub- sec'on there rs a difference of opinron between the rocar authority concerned and tha Authority, the matter sha, be referred to the Government, whose decision thereon shafl be final. (9) rn thrs sec{ion, and in sections 14,'16 and 41 the expression ,Deparrrnent the Government, llt of rhe stare c o*-ff; ;ll1ilH;::,"1fl,*T or pub r ic underrakins wtr the @mmencement of Act 1 0f 1g75, the Govemment considers necessary for proper deveropment of any urban area or group of urban areas in the state, decrares such urban area or group of urban areas to be a deveroprnent area for the purpose of this Act and declaration of urban area to be a development area for the purpose of this Act The Section mandates that deveropment sha, be stricfly in accordance wih the deveropment notiried under rhe Act. A person constructing a building or deveroping rand in a deveropment area appries to the authority fbr permission 'i€Gesssry' "pprlotion "ppri-rr"t making such enquiry a3 it condder to construct a building ordevelop land in accordance with the developmentplan' (t) EverY person or body includln! Seglilgllli: Appticatlon lor p€rml'sionl n, oiin" oove'rtnent deslting to obtaln the petmiscon j"YYl" o ffi rs shall make an applicatlon in wr lng to lhe Authoitty in suctr i"-ilii" torm and containlng such particularg ln lelPect of the development to whlch .ur"i"" as may b€ determined by togulatlons' under sub'sedlon ( l) shall b€ accomPanied by sctr les izi i"etv as may be prescribed and a coPy ol thr tllle deed ol tho land duly attested.by aGazenedotticeroltheGovefnnEntlogethgrwtthanu,banlald.celllng cleatance csdmcale it the extent ol lhe land ercceds the celltng llmlt or.an thal the lotol extent ol land by anch holdqr' or his or her "iio"riia*trr^q ,n.u"f"o chlldten does not ercEd the celllng limit' Provided lhat no such lee shall bc necessary in lhe case oI an "por"" ".0 applicatign made by a OePartment of the Govefntt|ent' or any loc'l aulho]ity' -iif -O" ,*",* ot an application lor permi+lion under lub'soqlion (l)lhe in ralatloJr to luiiority, t" clause (d) ot sub'sectlon (2) ol Scc'tlon 7' or ln telttion "rr", ."*, to any olher matter, shall by order in wrlthg ellher grant lhe psrmb3lon' "O*ttt* "", if any' as tnay b€ spec{lled in lhe order or reluse "uUi*r lo gtant such Permission' iiiwi"r" p",.i"""n is relused' the groun(3 ol auch relusal shall be recotded in writrng and cornmunicaled to the applicant In the manner determined bY regulations (5) lt, within ninety days atler rne receipt ol any appllcallon made under this section lor pe.mi:ision' ot ol any intotmation or lurther lnlormation required under rules or regulaiions' iha autho'ity has neilher grdld not.retus€d Fr€rmission. such Permission shall be deefiEd lo have be€n grdrted' 'nd applicant may Plocee'l to carry out the devdoPtrEnt b"t n:t-.1,1" to conlravene any ol the pTovisions ot fhls Act o' tny rulcs or !€gulations made under this Act' (6) The Authorily shall keep a reglder of appllcations- lot permis'Slon under lhis seclion in such torm as maY tro dttdmined by tegulallons' contain such particulais including intormatlon as to 121 ft the manner in which applications lor p€rmi3sion have tEenleslt !Tlth' al may be determined by member ol the public during specilied hours on paymenl ot such l€e' not 'egulalions exceeding live, as may be determined by regulatlons' (8) whe; Permission ls refused und'l this sectlon the applicant or any lo get relund of the tee paid p1.*n on the applicalion lor peimission' and shall be available lor insp€ction tt"ough him shall not be enfi €d "u"t' "onaitions' ,"gi.t"' "f"i'ning " ""iO "hall -by Under Seclion 14. every person desiring b obtain the permission refened to in Section13shallmakeanapplicationlotheauthorityandheapplicationcontainssuch particulars in respect ot the developrrent to which the application relates' as may be determinedbytheregulations.Section14(2)providesforpayrnentoffeeasmayb€ prescribedandSectiol4(3)providesicrenqulryofapplicationrcceivedundersub section (1) ol Section 14 and the enquiry br he purpose ol subseclion (3) is in respecl of matters specified in clause (d) ol sub-section (2) of Section 7' Therefore' lhe p€rson intending io obtain permission has b state details of development and the developmenl prescribed by regulations and obtain permission lor executing development as pel development Plan Section 15: Use ol the land and buildings in cont6ventlon ol plans:. Attel tha coming into oPeration oI any ol lhe pltns in a zone' no person shall use ol provld6d thal it sh.ll be la p€arnit contornlty wtth s{rch plan: lo be ur6d rny Irnd or buildtng t.l that zonc oahorrvlse thao ln cond*,ons as may bo *,"ffi HJffJLX ;fr I ilT,,,:ff ;:: a ,i"i],1i" *rn ' '- "...-..' ,. or buitdtng ior the purpose ror wttch, rnd ro ,n" u!6d on the date on whlcrr sucfi pLn co.Es lnto ro.".:l "o"n, '. Ukewise, Section .l s deveropment area in conhavention i authodr es,rcm sranrns pennissio'j:; ::i:;j::ff; zonaldevelopme plan. prohibib use of land and buildings in a notilied ::##l,:';f ;: Section 27: LrW o, tho dewlo or rhis acr and rhe .u,".;;;ffilt ".:T;il lH:tif"i:,1iilffi:: (hereinaater c€lled tho devolopment ctarges) on the institution o. (sic. of) u9€ o. change o, uso ot tard or bufloing. or de_"p""", .i i"*,.'ir]uo,"n tor whtch permtsston ls r€qqirod under tht6 o" "", ,* ,*il ".* ;; "; o"r, " oJ the devetopment area wfthtn the maxlmum r". ;;,;;;l provided thlt the rates o, deyetl ";;;; be ditrerent ror direrent parts ot rhe da/elop.ner ; Jlm;:"r#:rhav provjded turthe, that tho prevloug sanction o, the Governheht has b@n obtained tor the.ates ol levy, (2) Where the Authorlty has determined to levy development charges lor the r**ir_n fi.st tirne or at a new raaq tt sha[ ,onhwith pro,"n the rates of levy o, devdopment charge$ (3)The devetopme.[ chargos shall be leyiable on any person who ios tutes or chorges any such uses, ufirenakes or ca,ies ;;.;;;;; ;;;;;,".. (4) t{otwithstanding anythtng clntatned ln sub_sedions (t) and (2), no ,* .. ji l*."jll devetopnient chargos shafi be tcvie{, on instnr." or developm€nt or, any lsrd or building ,""* ," .. ,* #"iiJ, "* pos9esslon ot the ccnt'rl o, the st.te cove."rr** or .r"n, i"o, "rin.jrr. ,rin,*r". ", " Under Section 27, fie auhodty is empowered b levy development charges on the institution of use as per lhe zonal dev riloJ;ljflil :: ffi:;,JH: #" rand or buirdins, deverop,"nt or under Act l ot 1975. The deveropment charges payabre under his seclion are ror inslitution of use; change of use of land or building or development of any buitding or area for which a permission is requrred. F,om the nature of revy under secrion 22, it is discemible fiat the levy is a chaEe payable for undedaking developrnent as pe. the nolified zonal development plan b U6ar Development Authority. "ny ryl?"" ot asressrng the det doplrlenr chars6, thc use o, tard --'- -- " -. ".t"golJ Sectio[ 28: Rateg of Dqelopme0tr a_r:.* !_il1? a.rd buitdi.tg Cta[ bo d.eslfled under 0to folowtng (t)t.dusrd.t; (ll) Commerdat; (iiD RBktendat; (iv) Agrtcuttu..l; and (v) [iscsltaneoug. (b) ln cbsCfylng thg use of la.d rnd bultdlng unde, .ny o, the c.t gori€s mentioned tn chuse (r), the prsdomtnant purpose tor wi; ;; building are ssod shall be re maln bas|s lor such clarslfication. I_4 y 1tes -" gr.pmeflt chegec shafi bo O"t*.iJ on ur" p.opo""o use ot land o. bulldhg:. ;;;; (a) ln the case ol developrncnt ol land' at t rste to be presctlH pct h€ct8re ior lhal area. ol developrEi ot bullding' d a rate lo bo pr€scrlbed per ; ;;-;;* square mete ol flool area lot that !req; E -aJ,i" ii * ir""* ;;";;;;", derclopment ol buildlng). - to a buildlng ls wod lor any provlaea furffrer ttrat where land apgurl€nar pu.pJ ina"p.no"nt of lhe building, development charge may bg hiod separately lor lhe bullding and lhe land'" such rates ol develoPdElrt ctarg€e shall not exc€ed rup€es per squar€ rieter in the case ol developmsnt ol tand and and lwentv ti'€ Pet square meter ln lhe case ol The development charges are payable according b the brcad classification stated in Secton 28 otthe Acl Section29providesforassessmentandrecoveryoldevelopmentchargesbyhe authority ftom the applicant developing a property' Belore concluding the scope and the ambit ol various aspecb namely long title' preamble. delinitions. enacting clause orformula' operative and principal provisions ancj adrninistrati!'e piovisions ol Act I ol 1975. we deem it appropriate to re(er to the Urban Development Aulhoriv Rules, lgTT lllustratively stated' the rates ol development charges under Sectioll 28 are as follows: For Land 12 For Built Oth€. Municipalities & Grarn Pa.thayals Grealar Hyderabad CoOolaton OIside G.eater For rnstitution ol use or change ol use a v.canl lo Fesidrlotal b. vacantlo comhDrcral c. vacanl|o lndustial o Vacanl lo lvlis.ellaiecus 1OO r00 50 60 60 30 60 60 30 50 40 125 125 125 100 60 30 a. Rec,eatonal lo Fesidsntal b. Rscroatonal io Commsrcial c. aecrsadond ro hdusl,ial d. Fecrsanooal lo Miscella'eous e Agdculiuravconse alion or Gr€6n Ben lo Pesidential 2m 25 200 200 r00 r50 100 100 50 60 50 50 r00 100 1m 60 150 r(n 50 75 45 60 60 60 45 From the above, il is clear that a person inte(ested in development ol a land/plotibuilding is required to pay the above development chaEes to lhe autho'ty under Act I ol '1975. The levy of development charges is lor iostitution of use i e ' 0re for change of development notilied use in the zonal development plan, conveGion l€e use from residenlial tc commorcial or as the case may be. Likewise, conversion o and use from recreation tc residential, residenlial b commercial eb., is povided subject b paymed of deveropmed charyes as appricabro to a caEgory. Thersrore, the main obiect of Aci 1 of t 925 is for developmo o, urban arcas according tc ma$er ptantonal development plan and p.ovide ,or matiels ancillary thereb. The shon tjue of Ad I of I 975 furher reinforces he scope and obiect of Act 1 of 1 97S as an onactrEnt intended for planned development of notified urban areas. Act I of l97S defines developmenl and provides ,or planned development of urban areas. To remove diffculties in implementation of Act I ol 1975, a few development ac{ivilies are removed from development arey'uban area togetier with he obligation to apply for pemission under Sections 13, 14 and 15 o, Acr I o, 1975 and 6is woutd go b show Ihat the Act is primari,y concemed wilh developrnent of furban aroa. in accordance witt master plan2onat devetopment plan. ln th he development charges are paid for institution of use or change o, ,"n0" """""' fte payment of deveropment fees are '*' "no arributabre towards deveropmen, deveroper or buirdinsrand ","., "" il":o;'";t;f;::::: ffi[::::: "n contended the appellanb. Re-stated wilh emphasis, in our considered view, Act I ol 1975 defines development. declares u.ban ar€as for developmont and provides for civic survey and preparation ot zonar deveropment pran by the authority. A p€rcon, who underrakes either conshuction of a building or devetopment of land, is required b pay devetopmgnl 1se under Sections 14 and 27 of Act .l o, l97S to fie Urtan Oeveloprnent Aufiority tor undertaking development as povided in the zonal development ptan. ln a given case, i, on the apptication ol a develope( change of land user is granted through a nolfcation under Section t3 or Section 15, such c of land use enabres the appricant b take up deveropment conkary ro notjfsd ma 'Jiffi:# 3:::ff"::ff":j["i:: under section 7 or rhe o",. rn"."'",. i,f Act is not atfacted lo such development TherErore, notification under Act I of t975 from any view point cannot be beaEd a s a @nvg6ion of land rrom agricuriJre purpose to non-agricurtJre purpose. From he scheme of Act 3 o, 2006, we are o, tr€ view that conve,sion tax is payable for use of aOriculfurat land br non-agricultural pupose to the Govemr *ro,,#,loll.."ffrlf"'.'",'fr:ffi::T::1: Act r o,, e7s by a de,",",", to urban Deveropment Authodty. These [,o revies nam€ry rhe rand conversion tax under Act 3 ot 2006 and the development loe for developanent aocording to master plan2onal devetopment plan are separate and distinct. ", ln ltluniclpal Councit, Kola, Raiasthan,s case, while considering the impact of name ol a levy, tre Apex Court held thus: "Whenever a challenge is made to the levy of tax' its validity may have to be mainly determined with reterence to the legislative competence or power to levy the same and in adiudging this issue the natJre and character of the tax has to be inevitably determired at the threshold' lt is equally axiomatic that once the legislature concerned has been neu to possess in" po'r", to levy the tax, the motive with which the tax is irnposed become immaterial and inelanant and the fact that a wrory reason lor exercising the power has be€n given also would not in any manner derogate from the validity of the tax' ln M/s Jullundur Rubber Goods AIR (1s70) sc 1589 this court wh,e ou"ffiittT"ha*enge to the revy of rubber cess under Section 12 (2) of the Ruooer ict' 1947 as amended in 1960 observed that the ta( in the nature or excise outv ooes not cease to be one such merery because the stage of revy and coilection has been as a matter of regisrative poricy shifted by actually providing for its levy and collection kom the users ol rubber' so long as the characterolthedutyasexcisedutyisnotlostandtheincidenceoftaxremainedto be on the production or manulacture ot goods' Ukewise' once the legislature is found to possess the required legislative compete'ice to eiacThe.ll: '1T::t^:1: tax, the rimits ol th.rt competence cannor be iudged rurther by the form or manner m which that power is exercised' ln (Monis) Leventhai and Otheis v' David Jones' arose aS tO the power Of the legislature tO impose'Bridge Ta(', when the power to legislate was really in respect of 'tax on land'. ll was held therein as lollows: .r^ ,.n.^\ o. 12a rha ^ilestion LIO., ttln ( I rJv' I that though directly imposed by the "The appellanrs'contention legislature, the bridge lax is not a land tax' was supported by argument founded in particular on two nranitest facts' The brkJge tax does not extend to land generally throughout New South wales' but io a iirliited ar€a cor"nprising the Cit'v of Sydney and certain specitiod shires' and the purpose ol the lax is not that ol providing the public revenue tcr lhe common purposes ol the State but ol providing funds for a particular scheme cf bettermenl No authority was vouched tor the proposition that an impost laid by statule upon properly within a defined area' or upon specified classes ol propert/, or upon specified classes ol persons' is rlot within the trus signlflcance ol the term a tax Nor so {ar as appears has it ever been successfully contendd that revenue raised by statutory imposts ror specific purposes is not taxation" Similarly,thecontentionofaooellantsthattheconversiontaxvirtuallyamountsto double taxation on the same subiect is misconceived and that the tevy of land conversion tax is by the Govemment and development fee by the Urban Development Authority. lnRadhakisan Rathi v. Additional collectoru, theApex court while consideringthecompelenceofdiflerentauthoritiestoimposetaxonthesamesubiect matter held tttus: ln the light o{ the aforesaid relevant provisions of the Panchayats Act we have to consider the queslion posed for our decision' lt is obvious that a cinema theatre situated within the territorial limits of local municipality or a corporation can be taxed by the concerned municipality in exercise of its powers under the relevant Municipal Act. But il tho same theatre is also situated within a block duly constituted under the PanchayatsActitwouldfallwithintheterritoria|limitsottheconcernedJanapada Panchayat constituted lor that block as laid dorn by Section 103 read with Section lM of the Panchayats Act' Once that happens the concerned Janapada Panchayat would obviously be entitled to invoke its taxation powers under Section 157 for the areawithinitsiurisflictionandifatheatreissituatedwithinthatafeathenobviously Section 157 would get attracted lor imposing the twin types of taxes mentioned by Seclion 157 which are permisslre b be imposed by the Janapada panclEyat. tt b now well seltl€d that lho sams subiect malt6r can be co\rgrcd by taxalion nets ;mpo6ed by diflerent cornpetrent taring aufioritigs and ftere wf,l be no double ta.xatim irvolved h such case. We may reler in t s coinsctbfl to tte d€cisilo of thb Court in the cas€ ol Sri Krishna Das v. Town Area Committee. Chiraoam, [tggol 3 SCC 645. Para S0 of the report at page 681 lays down 8s under.

30. Where more than one legislative authorily, such as the Stale leg'tslature and a bcal or municipal body possess ti€ power to l€vy a tax, there is oothirE i,n ft6 Constitution to prev6n[ the s".e pe,"* o, lrop.rty b€r',ag subiect to botrl the StatE and municipal taxalon or fre iame legislature exercising its power twice for dfterent purposes.ln Avinder Sindh v_ State of punjab the State of puniab in Apdl l9Z requirea tre varbus municirat bod es in the State b impose tax on tle sale o,lrdian made foreign liluor @Re. I per botte w.e.f. May 20, tgn. The municipat autbritjes having failed lo take actioo pu.suant to he directive the State of Puniab direcfly issugd a No licatbn unde. S€ction SO(5) of the punjab Municipal Corporalion Act, .t 976 ard simihr p(ovision ot the MunicDat Act, lgil. The petitioner chaenged trle constitltiorEt valdity of the said stalutes ard the levy on f|e, int€r alia' ground ol doubl€ taxatin Krishna lyer, J. speaking fo. the Court hetd: (SCC p.iil4, para 4) There is nolhing in A!liC!ei265 of the Constilution f.om which one can spin out ths Constr,Mional vice called douue taxatioo (Bad economics may be good hw and vice vefsa). Oealing with a somewhat simitar argume t, fie Bombay High Court gave shori shrifi to it in Western lndia Theatr6. SomO urdeseNing conlentions die hard, rather suNive alter death. The ont epitaph we may inscribe is: Rest in pace ard don,t be ,ebom! lf one he same sutrtbcl maner he legislaturo chooses to levy hx twice over there is no inhefent invakJity in fie llscal adveflture save wtEre other prohiMions exist.. All the citations retied upon by he leamed Advocat€s Gensral appgaring for fte States of Andhra Pradesh and Telangana are not considered, lor the view we have independenlly taken on the scope and ambitofthese two enactrnenb. Having considered the provisions of bofi the enacinenb independenfly and after inlerpreting the Sections in the manner indicaEd above and by relying upon the principles of law taid down by Apex Court in KSL & lnduslrtes Ltd,s case, wg are ot the view fiat lhe submissions ol leamed counsel appeadng tor the app€llanb are de !,oido, any merib and are accodingty ,eiected. Hence, it is held that eiher he scope and the ambit or payment of land conversion Iax and the Developrnent loe under Act 3 of 2006 and Act 1 of 1975 a.e sepa,ate and distinct. The question is answered accordingly. The further contention of teamed counsel lor the app€llants that the U6an Development Autho.ity cannot insist upon production of NOC ,rom Revenue Divisional Officer under Act 3 of 2006 by refe.ence b fte penallies provided under Ssction 6 of Act 3 ol 2006, is equally unlounded. May be hat under Section 6 ol Ac{ 3 of 2006, penalty for ,ecovery of land conversion tiax with fne is provided for. That does not mean t|at he Gove.nment with a view to synchronizing the tunctioning of all he departnents and prevent loss ol revenue cannot call upon tle Urban Development Authority tc insist produclion of NOC from the Revenue Divisional Officer under Acl3 oI2006. The Ulban Development Authority construing strictty geb jurisdiction to entertain an application for which conversion tax is paid under Act 3 of 2006 and tre NOC can be justified by this reason as well. The insistence at best can be treated a concomitiant and the authorities can certainly insist upon NOC from applicant for processing the application made under Section 14 of Act 1 of 1 975. For the view we have taken on questions (ixii) and (iii), no exception could be found against the impugned common order dated 28.04.2010- For the reasons stated above, the appeals are without merit and accordingly dismissed. As we have confirmed the common order dated 28.04.2010, we are inclined to dispose of writ petitions as follows: a) ft sha[ be competent for the Urban Development Authorities or the local Authorities, as the case may be, to insist on subm'rssion of clearance/permission under the 2006 Act as a condition precedent for releasing of layouls, and b) the land has been put to non-agricultural use before the 2006 Act came into lorce, such clearance/permission shall not be insisted. c) Conversion ol land into Non-agricultural use under the provisions of Act 3 of 20C6 is necessai^y even if the land is ccvered by Master Plan and sanction of layout by the Development Authority under the provisions ol Act 1 of 1975. Consequently, miscellaneous petitions, if any pending, also stand disposed of. No costs. DILIP B.BHOSALE, ACJ S.V.BHATT, J IHe:28.08.2015 E,ooo) a s"" u* Be,^*o sc ru* En,*,*,so,oro E orro) o scc oou Eros) g scc r.. Eo,"rr*or a* EetR tsso sc page tt @ (rrsg) . scc ., t Bo*l 1 scc416 @ ts&fl"upp) scc 2os @(rorls scc6s4 @lzoosp scc sro @(rrru) o s"".*