'1 . G.Balappa v. learned Standing Counsel for 2nd respondenl

Order

This writ petition is filed declaring the action of respondent No'2 in insisting the petitioner to enclose NALA Certificate issued by Revenue Divisional Officer vide letter bearing No.G 1/ 1125 /2015, dated O1.06.2015, as illegal and arbitrar5z and without any jurisdiction.

2. Heard Sri D. Srinivas, learned counsel for the petitioner and learned Standing Counsel for 2nd respondenl.

3. Learned Standing Counsel for 2"d respondent represented that the issue involved in the writ petition is squarely covered by the orders

passed- by the Division Bench of this Court in K.Satgananda Patnaik and others v. Hgderabad. Urban Deaelopment Authoritgr wherein the Division Bench of this Court held that; I \ "As rue haue confinned the common order dated 28.O4.2O1O, ute are inclined to dispose of uit petitions os follotus: (a) It shalt be competent for tle Urban Deuelopment Authoities or the Locot Authoities, as the case mag be, to insisf on submission of cleorance/ pennission under the 20O6 Act as a condition precedent for releasing of layouts, and (b) tle land has been put to non-agricultural use before the 2006 Act came into force, such clearance/ permission shalL not insisted. .._I -/ L 2016(3) ALD 600 (DB) 2 o (c) Conuersion of land. into Non-agrianlfural :se und.er the proui.sions of Act 3 of 2OO6 ts necessary euen if th? land. is couered. bg master Plan and. sanction of lagout by tL z Deuelopment Authoitg under the prouisions of Act 1 of 1975." 4 . Learned Standing Counsel for respondent \ r.2 rvould submit that in view of the aforesaid order passed by the Diu sion Bench of this court, the petitioner has to submit NALA certificat,: ancr thercfore, the r'r'rit petition is liable to be disposed of in terms of . crer passed bv the Division Bench of this Court in K.Satganorno.t,. patnaik (cited. supra).

5. Learned Counsel for the petitioner did not dispute the submissions of learned Standing Counsel for resporL, lenl No.2.

6. Accordingly, the writ petition is disposed of i. 1 :rms of directions issued by the Division Bench of this court in x.scztl anq.ndq. patnq.ik (cited. supra). There shall be no order as to costs. Miscellaneous petitions ending, if any, sha1l s1 md ciosed //TRUE COPY// SD/-A.JAYASREE ; STANT REGISTRAR SECTION OFFICER k, t\ To, 1 One CC to SRI D.SRINIVAS, Advocate fOpUf,f\ Two CCs to GP FOR MCPL ADMN-URBAN DEV 2 Telangana. [OUTI High { :sg1 for the State of

3. One CC to SC FOR MUNIC|PAL|TY. [OPUC] 4. Two CCs to GP FOR REVENUE, High Court for the St.t ) of Telangana at Hyderabad. [OUT]

5.,,.Two CD Copies. ,'N Note : To Annex a copy of order passed by the Divisio I bench of the Hon'ble Court in "K Satyananda Patnaik (Cited in the Order) i.e. A/A No.70212010 and batch and WP No.8666i2008 and batch. (As per the directions of the Hon'ble Court) BSK .:T*EB -i4 j 3 HIGH COURT LNA,J DATED:1610912025 ORDER WP.No.16208 ot 2015 Ic .J \(tZ. _-a: ,-==:.- . ' ., -rE Sic I (: 2 6 f [8 026 1 ( \\ 7 c\ ,-'f' DISPOSING OF THE WRIT PETITION WITHOUT COSTS $)* HON'BLE THE ACTING CHIEF JUSTICE DILIP B, BHOSALE ANO HON'BLE SRI JUSTICE S.V.BHATT 10 '1o.741 20 't-o. 7 42!2010. 7 4312010. 747 2010. 751t2O10. 757t2010. 758t2010. 13j7_DA2_ 533t2O15. 092/2008. 18512/2008. 97212009. t20 17 7 18727i2co8, 126012009. 389312009. 6427 2009. 5,142',2009. 6s54,2009. 7659 2009. 8339i2009. 9368/2009. ra796/2008. 24687 i200a 2672312008. WP 791812008.28342

29612012. W P Nos.8666l 30999/2010. 3253l/2010. 2913,'m1r. 33081201 L 6643 201 1- 6730"2a1-S9iA/2!)L 74121fr1l- 7476t2011. 8103t2011. 9429!2011.- 9915t2011. 203r'.112011. 2\301?p1lj,--491]pl\ n 4 11 7 aR!.^1. < 1Alrn1) <rn) 1I 7 <nlr rro1, 111/I11)i1) T 6Ar! /rn1' 154 7)ai1) 1RP<\!rn1) 1) r, 2 12 I 'fi r, l3 3293 2013.3s21i20r3. 4o9s'2013 60612q!3-i2142013-i63220L3 68s0/2013 8871/2013' t3 10 13 10894/2013. 11455, 13. 1598 ,1 3868120 r 3. l t!89120ll._144922ql3, 1 7284,2013. r741 61201 3. I 7626/2013. 1 1789?20r3 tOl88l20t 3 21439i2013. 2r881,2013 22564 2013.,?2j,Lz291i, 22909i2O13. 2O44At2013. 20695t2O13- 233e32!13-234_!D!tf 28093/2013. 31s33/20r3. 10s-2ol4J4Er201d-9942014-!-L6940]!. 1225t2014. 1229!2014. 139812014.2O74t2O14.3030?114.42311291-\5&1?!A!-gi5S1g)lL 6117/2014.7540/20',14.7903/20',14.884912014.93702014. 9380;2014 . 945312014. 945412014 1266"4i201 4_ 12A70t20t4. I s6/2014. I 37s1/201{, j5062201 L 152682Q14=1546012Q!4, 14 '17 't7515i2014. 17548/2014. 18259/2014. 1&158/2014. 19061/2014. 19163/20',14. 19171/ml4. 1g281t2014. 194222014, 2168f/2014. 21A302014- 2249412014. 22559iN14 2329912014. 2419212014. 24327t2014. 2492012014. 25113t20t1. 2s674t2i14. 2590612014 26422t2O14' 2922212014. 292 12014. 14 4 14 2211 14 34A5a/201 4 351ql/2014. 35 25i2014 t4 7 4

3555512014. 4097012014. 41159t2014. 42ot2o15- 3766/m15. 3857/201s, 4553i2015. 5164i2015. 5234 2015. s974'20I5 6036/2015 6620/2015. 72 7 8746/2015.8766/2015.8875/2015.8898/2015.9089i2015.9456,2015.9492/2015.9639/2015. r11 127641m15. fiA51n015. t2f,41t211s. 13383/2015. 13788/2015. 13i594q!5. 1!690l2qD- 1827912015. 1862412015 end 15610/20I 60q1/20'15. 15F,161201 1A671t2015. COMMON ORDER. (Pet Honbte s. JLsttcc s v Bhatt) Through this common order, wc proposc to drspose ol writ appeals/wril pelilions involving common questlons ol law The batch of writ appeals, ls directed agarnsl lhe common order dated 28 04 2010 By the order dated 28'04 2010' the in W.P.No.26688 of 2OO7 and lhe batch learned Single Judge disposed of the batch of lhe writ petltions by holding as lollows: " a) ll shall be competent tor lhe Urban Deve opmenl Aulhorilies or the Local Authorities. as lhe case may be, to lnslst on submisson of clearancelpermission under the 2006 Act as a condrtion precedenl releasing of layouts; and 'or b) I'je la.d has becn pul to non agacullural use tlfore tlre 2006 Aci caln,i nlo lorce such clearance/permisslon shall not be insrsled. Thc 2006 Acl re erreri to rs lhe Andhra Pradcsh Aqr cu lura (Convcrs on lo I Aq.rc! lural Purposesr Act 2006 whrch shal be herernaler called and relerrcd r shol Acl3 o(20i15 The prny215 rn lh. b,rtch ci ,tvflt pettlons seek decraralror) that lhe petrlron _ rrh jr :.re parl or a zonal aeveopmenl plan urder the Andhra Pradesh Urban A ' (D.!. oprnent) A.l I9'5 (lor slrort Act 1 ci 1915 ) arc oulsrde the purvrew ol Aci 3 of 2006 or that the rsslred by lhe Ur5an Deve oprirent Authoftty callrng upon lhe petitioners to obla n ' Otj ?,j lr, Ced r.atc Cl.a..1nc3 under Acl 3 ol 2006 for .o,rsrdenng layoul spplrc,t as l?Jal wthorj,lLrrs(l cl or erd unconstrlullonal. 1i lhe r;rs a_t bni.'r. iha lollow ng quesl ons ar 5e for ;orsrdcratron urder I l 3 o' :l'16 anj :h: A:t 1 of 1975 !Ih:l: rs thc scoDe anci aorbil ol Acl3 ol 2006 afo Acr 1 ol 1975. rn partcu l scope purrrose and cllccl of payment of conv".rsron Tax anc Devek r-i Charles Lrnder Ihrse Acls? Whelrrer tha Llrban Development Aulhonly for cons derallon and sanclion ol . . .l plans sLbmrfted by a developer of a property covered by Development Pl.. : . nssl upon subn_ssror of No Obteclion Cenilicale,C earance kom the R{.v' e Drv s,rnal Ofl,.er und.r Act 3 ol 2006 lor processrng an appiicalron lled tor l appfc,al, I Wl_.lhcr i s .r.e:s?ry lo get land converled ,.lo Nco.Agr]cullural use:fce ( s covered cy DevelopmenlPlan and aflcf the sanctron of ayout by lhe Llrban Devcloprnent Aulhority? Heard l.4r f.I. V Durga Prasac. Mr P Prabhakar Bao tulr Atay Reddy. le3rned counse . Mr. V. Venkataramana and [,.1r E. Adinaray;na Rao. learned senior counsel for appellants/ pet]troners arlj i j learned Advocalcs Gencral lor thc Slates ol Te angana and Andhra Pradesll For convenrence. vve re{er to the averments in Wril Appeal No 702 ol 2010 an I out oi wP.No.266B8 ol 2007 and the reference 10 these allegations rs suflicr(r, r understanding the circumslances under which the queslions of law arises lor de(:r: ( r. The learned counsel appearing lor all the panres advanced arguments on the queit ) s framed above. The case of appellants n wfl t Appeal No 702 ol 201 0 is that the appellants arc I absolule owners and possessors ol the land in Suryey No.242lPan,244lPat1 \ 245rPart of Bahadurpa li Vi lage, Khuthbul ahpur t\.4andal, Ranga Reddy Drstricl 'r appellants claim aght and trtle to the sald property through registered sale deeds d, I

11032005.28.052005.03.06.2005.04.06.2005and27.12.2AA5 The appellanls under Seclron 12 of Acl 1 of 1975. app{ied 10 the Hyderabad Urban DeveloPment Authority/1st respondent for converslon of land use under lhe zonal development plan. The competent author t/ through N1e.Fo bearing No. 268921 LIA dated 04052005 rssued dralt notilicatlon cal rng for obieclons aganst proposeo change o{ use. The rcqucsi of appellanls-for change of land Lrse was acccplcd through GONlsNo23T 1\,4unic pal Admrnislraton and Urban Dcvclopmcnl (1) Departmenl daled 30052006 The appellants appl ed under Sectrons 13 and 14 ol Acl 1 ol 1975 tor sanctron of layoul for the pelrlron land Thc tsl rcspondenl called Upon the appellants lo pay development charges ol Rs 44.10.5821 The levy of development charges rs uoder Seclrons 27 and 29 of Act 1 ol 1975 On 15.11.2007, the appellants pad a surn ol Fs44.10582 towards develop enl charges as demanded by the urban Develop'nenl Authoril'y The 1s: rcspondcnLurban Development A!lhorily through Letler t'lo 11766 l"4P2Panning H/2006 dated 11-112007 called upon the appcllants lo produce No ObJection Certrtrcale (NOC) fiom the Distflct Coliector evldencrng conversron of sublect and lnto non-agncullural pLrrpose to process tno pendlng app rcallon lor approval ol layctrl The appellants challenge the instant letter on various ,aclual and legal grounds. Brielly stated, lhe case of 1st respondent, as reflected ln the counter atlidavit. rs that as an authoriry under Act 1 ol 1975, the ls' respondenl rs concenred vr'lth the development of an area covered by masler plan/zonal developnent plan as per the purpose specilied therein. The 1sl respondenl admrts receiplol Fs.44.10.582r lowar'is development charges. As far as the averments ln letler daled 11112007 the 1s! respondenl replies lhat the conditron 10 obla n NOC from the authority under Acl 3 ol 2006 rs rnsisted upon as per the Crrectlves ss.red by the Government of Anrihra Pradesh. The lsl respondent al eges that Acl 1 of 1975 cannot be lndershod as overndrng Act 3 of 2006. lt is stated lhat an owner ntending Io develop the land into any of lhe purposes stated under lhe notifled masler plan is required to lollow the prescriptions ol Act 3 of 2006 and Acl 1 of 1975 In other words, it is the case of 1st respondenl that the amount paid under Acl 1 ol 1975 is lowards developrnent charges and under Act 3 of 2006 one time tax is payable and the tax ls rmposed by R D'O ior conversion ofagricultural land for non_agricultural purposes. Therelore' accordlng to 1si respondent Acts 'l of 1975 and 3 of 2006 operate in drtlerenl spheres and the notilicalrons or conversion of land for development purpose cannol be equated as conversron of agraculfural land for non'agricultural purpose under Act 3 ol 2006 The l st respondent prays for dismissal of wrlt petition. The 2nd respondent in their counter atfidavit states that lhe provisions of Act 3 o{ 20C6 are applicable and bindrng on a person intending lo convert agricultural larl l' non agricultural ourpose in spilc of any orde.notiicalion under Act 1 of 1975. h i r: casc of 2r'' (rspondenl lirar lhe payrneni lf developmeni fee under Acl I o{ ,975 rs [o an aL]thonty consll.ried under Acl 1 ol 1975 and lhrs levy rs a the n:: '. ol 1cc collecled lcwlrds deveoprnent charges by tlre specified authonty. I a dcv.ropment charges are payable in lerms ol applicablc rcgu alions made under / ( 1 of 1 9 75 and the Daymcnt does noi cxonerale thc appcllants lrom lhe legal obliga:i. r' conv{rr:j crn tax urder Acl 3 o'2006 I he 2'rd respondenl futher states thal under lhe Andhra Pradesh Non-agflcJl L l Land Assessmeal Acl. I 96il iic. shorl Act I4 oi I963 ). the Government was auth )r : a to ely acr 3!rLcLrltural lnc ta, upcriaorversron ofagncuilural land rnto non agrcu tLrral -. Uncci Acl I4 ol I 963. lre auilror 'irs !vere aulhonzed lo co lecl non-agricultural la r- ( irorn a person wl'J pots a!lrauliuia. land Iornon agflcultura useorpurpose Ther)ir.r or auihonty undcr Acl I 4 of I 963 lo rmpose Non-Agricultural Land Assessmenl (l.ll L ,) Tax orr and actUally used for nor aEricultural pLrrpose and lhe land to be used fo',( agncu trrral purpose was chailenged rn a balch of wal petlrons and the pflncrplo v s final y decided by the Supreme Court in Federation o, A.P. Chambers ol Comm€r e and lndustry and others vs. State of A.P.'_ For the purpose ol erarninin(l r I Irlcrg.clrq Acl 3 of 200ii in orr vie!! the law declared by the Supreme CoJ. r Federation ofA.P.Chambers case rsLiseful and relevanl porlion olludgmenl:cr i t1l thu s 7 : rs l.:e iafJ lna, e laxirE slalulc has lo be skictly conslrued and nolh.g ca,l bc reaC .lto rt ln lhe classlc passage kom Cape Srandy Synd cale. wh." was notrced r,l tlre ludgmenl under appeal, it was sard: 'In : lax no Aal :r,le ia5 to look merely at whal rs clearly sard. There rs no roor- Icr any irtcndment There rs no equily aboul a lax. There is no presumplrcn 3s lo a hx Nothrng is to be read rn. nolhing is lo be in plied Onc can look fa rly al :he language used. This vrew has been rerleraled by lhrs Courl trme and again. Thus, rn The Slale of Bombay v Automobile and Agncultural lndustries Corporatron, Bonrbay 1961 12 S.T C r22, thrs Court said: Bul the courts n inleereling a taxing statute wrll nol be j'rstified in adding u/ords thereto so as to make out some presumed object of the Leg slature -. lf the Legislature has lailed lo clarify ils meaning by the use of appropriate language, the benelll thereof must 9o lo lhe taxpayer. It is setUed law that in case of doubl, that interpretation ol a taxing statute which is benelicia to lhe taxpayer musl be adopted. 8 On behalf ol the respcndent'State. earned Counseldrew ou. attenlion to lhe,udgment of thLs alrrt an The Conlroller ol Estale Dutv. Guiaral v Shri Kanl al Tflkafl : -flal iudgmenr also is to the same eflecl and does nol ava the respoaCenls. ll said: Thc sweep of lhe S-.crrons whlch will be presenlly sel oul must. lherefore be rntormed by the language actually us6'd by the legrslature. Of course il the words cannot apply to any recondile specres of propely. courls cannoi supply new logos or rnvent Llnnalural sense to words to fullil the unexpressed and unslated wishes ol the leg slature 9. We arc n no doubt wnatever therelore. lhal ( rs only land whrch s actualy n use lor an industr al purpose as delrred n lhc sad Acl thalcan be assessed to non-agriaultural assessnrcnl at lhe rale specified lor land !sed for irdustrra purposes The wlder me3n ng clrvcr) lo lhe word used n tire Judgmenl lnder challenge rs untenabe llavrng rcgard to the lacl lhal the sad A.t is a tai(ng slatule. no courl :i luslrtued n n)pulrng Lo tlre legrslalure an rntention lhat lhas not clearly expressed n lhe language,t has enroloyed " Th. Slale Lcarsaiure taking oole of lhe aw dcclarcd by theApex Corrrt n Federation ot A.P. Chambers case and with a vrew to puttng n piace comprehensive legrslalron repealed Acl 14 of 1963 and enactcd Act 3 ol 2006 Therelore rn this backero!na 11 s lhe case ol2nd respondcnt thal the paymenl undcr Act 3 ol 2C05 s one trmc Dayn c;ri ol tax Ior ccnversion of agrlcultural land lor non agnclr rr,ral purpose. instead of levy and dernand ol NALA Tax for every Faslli uoderAct14of1963. The amount levied andcollecled underAcl3 of2006rsby tsvery nalure a lai leved by lhe State for converslon oi agncultura and lor non lgic!ltural purposc and no parallel can be drawn wlth the development charges pard lo dcveopm.nl authonty rnder Act 1 ol 1975 for inshlulon ol use or converslon of lrs-o According lo respondent, Act 1 of I975 and Act 3 of 2006 administer ditferenl situations and applicat ons lt is furlher sialed that the Stale Government after taking nole of lack bf coordination between lhe dflcr!.1 authorlies who grant permissions under Act 1 o[ 1975 rssued note Nos.84(15V&E.D 3,2AC7). (371,^,! &E'D3/2007) and (735V&E D3'2007) dated

28.05 2OO7 to rnsist upon producton o{ Noc/Clearance ironr R D O under Acl 3 of 2006 Whrle cons.jenng sarclron of layoul approvals. lhe lnslanl nole calls Lrpon lhe Vrce Charrinen ol Urban Development Authorities to insrst upon production of NOC from autho(ty iF DO) under Acl 3 ot 2006 The rcspofdents pray Jor dismissal of the writ petilons The learned counse for appel ants/petitioners contend thal Act 1 ol 1 975 and Act 3 of 2006 cover the same subject matter and lhese Acts are ovedapping. Thereiore. in applicalron of these enactments, the well established principles of interpretaton as laid down in ALLAHABAD BANK V. CANARA BANK[2], SUBESH NANDA V. CBF. ASHOK MARKETING LIMtTEO V. PUNJAB NATIONAL BANKH and KSL & INDUSTRIES LIMITED v. ARIHANT THBEADS LIMITEDE are to be applied and comp rarce with the requirements under Act 1 ol 1975, safsfies the requirement of dLre conversron ol agncullural land for any of lhe non_agricultural puposes The insrstence upon ctearance/Noc from R.D.O is ullra wres and ln supporl ol this propcsrtDn the appe'lants place reliance onSUBASH KUMAR LOHADE VS T lE SPECIAL OFFICER, MUNICIPAL COBPORATION OF HYOEBABAO*. I rs conio.d.d lhal the rmport of boll_ ihe Acts is one arrd lhe same. The words con\':', . t6l and af arrgc oi l:tno Lrse used a lhese enaclmenls arc used n lltc same sense. llre iear ,c! ar-.r:se iLL^er'contendlhalllrlrr,)/'obsianleclauseinthesp) a enaclrr\-j,rl vrz. Acl I of 1975 has overrldrng eicct on lhe provrsrons of Acl 3 oi 201)f i rd thal llre operal on ol Act I oi 1975 excludes (rrsr y lhe oporat on oI provisions of Ac : cl 2006 r .r notLfrec urba. area anc secondl) lrro aonvorsron lax under Act 3 o :l( )6 amounts 10 doubic taialon T.e learncd counsel hrrther corrlend thal even assu r lq wtlroul admittrnq lral land co1!arsron tax s payablc. lhc scheme ol Act 3 o :'{ 16 provid.s for e, pcsl fsrlo paymell cl conversrcr ta.( lor use of land for non agncLr:l al pt,rpos:s Therelore. the Urban Developmenl Airlho lres cannol call upon applicitr tl la) oblar. iLlC fr)- ur3 qevefu! l-'l9canmg.l l^.r corrdrlron precedent irnposed 5' r. Urb:. :'r.rveloprsrt A-rtlrar'ty la'.cnsrdera: 3r .f 3yo(rt rpprcval application is artl r i arrd\1 ri r)!tlLrrsjcl'or The e?_: coLnse :rrlraannC lor the appel anlsplace s"a g reliance lrpon Seclon 2tcl. {tl ior and (p). Seclrons 3 6.7,13,27,28and29ot4c,- )i 1975 lo contend Ihat the area co! cred by Acl I oi 1 975 rs corilprchensrvely qoverned bv Act 1 ol I975 and nonc clsc. The appellanls rely upon lhe re{lllalrons rssued by the Development Aulhor ty frorn ti re to lrfira under Acl 1 of 1975 to il uslrate therr contenlron lhat lhe fee paid unCer Act 1 l: 1975 s rn lact a conversron fee Eyvrrlue olrssLr3nce of anollfication underSection; l' Acl -. ol 2006 lhe ands useo lrr such notr[red purposes are exempted lrom Aot 3 ] 2006.rrrd there rs no need ro pay rand conversron tax to Governmenl. The aPpellan s r suppci ol their cortention under Section 7 ol Act 3 of 2006 rely upon the notifici t r issued oy the 1s' respo;'rdent fo. ,nstrtutron of !se or any development use under Aa: I l 1975 lr cther wcrds. the subrr s: on of earnedcounsel lorheappellantsisthatoal a notlLcalron under Act I of I975 rs ssued perrn tlrng change ol and use, applica icr l Acl3 ol 2006 rs excluded tc sucn ioti{ied land It rs frnal y contended tnat lhe NOC cannot be rns sted upon kom Revenue Depa'1rt 1: and lhc requircrnent is withoul alrthonV and amounts lo arbrtrary exercise of power ,y the lslrespondeot. on the other hand, learned Advocales General appearing Ior Urban Developrri rt Authorities in respective Statcs contend lhal the chal enge to impugned let€r s unfounded and thal a readrng of provisions of Acl 1 of 1975 and/or Acl 3 of 200(, y appellants is completely erroneous and lrable to be rejecled m /lf,ai According to the learned Advocates Gcneral- rrnposition of conversion of a c lax on and used lor non agrc.r lural purpose should nol be contused with e J )r development charges paid to a. authority or change ol iand use permitted throJ( f a notilication under Act I of 1975 which is for a difterent purpose and has nothing to do with the payment of land conversion tax under Acl 3 oi 2006. Accordlng to them, the appellants are complelely ignoring the legrslative hrstory of Act 14 of 1963 which was repealed lhrough Act 3 of 2006 and the scope and arnbit of re enactment vlz . Act 3 of 2006. The object and purposes ol Act 1 of 1975 and/or Act 3 of 2006 are dslnct operate in d fleren1 spheres and there s no overlapprng of subiecl mafler as conten'Jed by the appe lants Slrong rel ance on the statemenl of obiects and reasons. scope and levy undcr Act 14 of 1963 and Act 3 of 2006 has beerr placed to conlend lhal under Act 14 ot 1963 NALA Tax was levled for a Fasll (yeal) upon usage oi any land 10r non_agncultural purpose. The Government was Ievying and oemanding NALA lax for use of the tota eKtent of agncultural land for non- agricultura p,rrpose and however levy oi NALA Tax under Act 14 of 1963 on account of ralio of Federalion of A.P- Chambers'case was reslricled to the exact extenl ol land used by an occuorer for non agricullLrral purpose- The GoveTnment. with a view 1.l addressing the bas s oladludicatlon in Federation ot A.P. Chambers' case and also in lhe place of arinua levy of NALA Tax enacted Act 3 of 2006 prov ding for mposilion of converslon tax for use oiagr cuitural Land for non agricu hrral purpose According to the respondenls lhe levy and demaod of converslon tax under Act 3 ol 2006 is drtferent and djstinct-from development charges paid under Sectlon 14 rea'l with Sect ons 27 to 29 of Acl 1of1975 According to the lea rned counsel, the contention raised of Section 7 oi Act 3 of 2006 rs misconceived and liable to be rc)ecled in limini for Seclion 7 deals wrth statutory exempton granted to a few classes of lands specified in the Seclion and grant ludher exemptlon to a class ol lands lrom the applicalion of Act 3 of 2006. Therefore, accordrng to the counsel, the nohfication, even if issLled under Act 1 of 1975 has no applicat on to claim exemption from either paymenl of conversion Tax or applicability of provisions of Act 3 of 2006 Further' if the basls of appellanls case namely lhat lhe Acts are covering the same subject and overlapping, is reiected and no exception for levy and demand of conversion tax vis a vis development charges can be taken- The learned Advocate General for the State of Telangana has relied upon decisions in Firm Fam Krishna Ramnath Agarwal v' Secretary, Municipal r. M's.Jain Bros. v. the Union of lndia.-' Kewal Krishan Puri v. State ol Puniab H corino Saran Gangi saran v. commission", or s"r"" Committee, Kamptee t8t TaxU and Municipal Council, Kota, Rajasthan v. Delhi Cloth & General Mills Co' Ltd-, oelnF!. Thc learned Advocates General pray for dismissal of the appealsipetitions. ln order to appreciate lhe contentions raised by the parties. it would be necessary t.r refer to h story, scope/obiect and salrent leatures of Acts , ol

1963.3of2006anC1oi1975 Thesalientieatures are examinedwith theassistan) cf basic aids of ifterprelation of slatutes and to determine whether these enactne rts operale 1n the sarne sphare or not The repeal of Acl l{aM63 and e tment of Act 3 o12006 As already noled trre cvy o[tax on agricu lura land lor : non agr cultural use vras ntrodLrced through Act 14 of 1963. The Tahs ldar under Section 3 crAcl 14 of l963wasauthonzedlolevynonagrrcutl a land tai for Lrse of agflcultural land Ior non agricultural purpose. As per Section 3 of Act 14 oi 1963. NALA tax was levre:l or diflerent purposes al .fc rates spec fied rn the schedule appended to the Acl - re assessment of tax s fcr [_aslr (year) and NALA Tax was levred lor the use oi agricu ir a{ land lor resrdentra. conrrrercra d,d rnduskra purpose, as the case may be. Se(it ) 4 ofAcl 14of 1963 empowered treTahsrldarlocete.nrine anddemand NALA tax fc,r r n agriculturai use of agncu rura laro ln Federation of A.P. Chambers' case, the Acex CoLrrt has laid down lhe princ p € of Iaw thal NALA tax can be lev ed only on the and actually used for any of the purp,)r )s specified in schedule cf Act 14 of 1963, but not on entrre land owned by an occupier. The sequel olFederation of A.P.Chambers' case rlustratrvely slated thit re assessee who possess,os an exlenl o{ Ac 10.00 for runnng an industry is requir€c pay NALA Tax only for the extcnt cl land aclual y used lor non agricLrltural purpose v r. Buildings, Factory anc llary faci itcsandnolonvacantlandheldasadjunclorothenv to the main purpose of establ shmcnt by the occuprer Theprncrpleof lawlaiddo'r,r n Federation of A.P.Chambers case was narrowed down the application of Act 14 l{ 1963 in.ecovering NALA Tax. Treretore, Act 14 oJ 1963 was repealed through Act: lr

2006. The Statement ot Objects and Reasons of Act 3 of 2006 reads thus" The Andhra Pradesh i'Jon Agrcultural Land Assessment Acl, 1963 providrs ior the levy of assessmenl ol lands used lor Non.agricullural purposes. The Non agrcurtural land as defned ufder Section 2(g) of the Airt means Land other lhan the land used exclusrve,y lor lhe purpose 01 agriculture blrt does not include the land used exclusively for (i) Cattle sheds ( ll) hay ach s Section 3 oi the Act, is the charging section according to the areas and rales rndicated n the Schedule therein. The Schedule sets out lhe rates of assessment per Sqr Mk. of land used per Fasli year (a) for industra purposelb) lor comrnercial purpose; and (c) for any other Non agricultura purpose including res denlral purpose. The Hiqh Coud ot A.P. in S-V Cements Ltd., vs. R.D.O., Nandyal and others (1993 (2) ALT 32) nlerpreted the word used recurring in Seclion 3 and the Schedule cl the sard Act means nol only actually used but also means any land meanl lo be used or sel apart from bcing used. On appea. lhe Apex Couft in the Federation ol A-P- Chamber cl Commerce and lnduslry and others vs. State of A.P., (C.A No 1039/2000) on 04.08.2000 held thal it s only lhe land which is aclually rn use ior an Industna purpose as defned n the Act lhat can be assessed to non agricultural assessment at lhe rate speofied for land used for lndlskal purposes ll lhe Supreme Ccurl orders are rmplemented by charging NALA, lhe demand w I go down to 75% of the totaldemand Th€ Governmenl hav: evoved New lnduslrial po cy and orders were rssued exemptrng a lndusLrlal units from levy ol NALA w th effect lronl 0r 04 200C to 31 3 2005 Accordrngly. Governmenl have decrded lo aL'ohsh NALA by repea|ng The Andhra Pradesh Non AgncirltLrral l-and Assessment Act, 1963 in ris p,.,cnt or^ 1.o lo tn:,od,-r ovy In tL. p\Lm al thp r..p or I0o. r- percent) ol rle basic valle ol the land in arrears as may be fixed by lhe Goverfme.i kom lrme to iimc as one lirne measure al the time oi . or,v6rs. .rr7 )nJond-t9a:p, ,x eg,:anoa Thrs B I seeks to give elJect to the above decision " The statcment 01 oblecis and reasons clearly shows that the enactment of Ac1 3 ol 2006 rs to requlate the conversron oi agflcultural land to non agicullural purposes for malrers co.nected therew th or incidental lhereto The preamble of Act 3 ol 2006 prcv des Io. repealing A.t 14 of 1963 The Hon ble Supreme Court in Slate ot Gu jarat v. Mirzapur Moti Kureshi Kassab Jamal and olhers* lard down the tnterprelative 1121 utrlrty ol s1a!ement of oblccts and reasons irr construing a statute. The relevant porlion reads thus 'Reierence 10 the Slatement ol Oblecls and Reasons is permrssible for understandrng the backgrounC. anlecedent stale of affarrs ifl relation 10 lhe statule a.d the evil which ihe statute has sought to remedy. The lacts slated n the preamble and lhe Siatemenl of Objec ts and Beasons appended lo any legrs atroJl are ev dence of lhe legrs atrve judgmeal They indicale lhe thought process ol the elecled representatives of the people and their cognizance oi the prevalent stale of af{airs. mpelling them 10 enact the law ' A stallrte is the h ghesl constitutlonal [ormulatlon of law. The means by whrch the Supreme Legrslature, after fullest deliberations, expresses lts fnal wrll. A clear distnclron exrsts between a repeal srmipliciter and a repeal and re .nactmcnL by the tegisl:llurc Likewise. lhe legal poslt on as to where there is a [epeal of an eraclment and sirnultaneous re enactmenl and whether the re_enacted law manifesls an intention incompatible wrth or contrary to the provisions of the repealed provrsLons oF the re-enacted enactment is examined. Therefoae, this Court while interpreting the scope and ambit etc., of Acl 3 cl 2006 musl bear rn mind the law subsisting when Acl 3 of 2006 has come into operation. lt is desirable and imperative to go through the then exisling legislation, it any, and obtain its clear understanding vis-a-vis Act 3 of 2006 and the necessity for fresh declaration of law by the State Legislature. Thus viewed, Act 14 ol 1963 has been in [orce from 1963 tll 2006. Under Section 3 of 14 of 1963, NALA tax was paid lor non agricultural use of agncuitural land. The Apex Court in Federation of A.P Chambers's case has restricted the levy and demand of NALA tax on{y to the actual use of agricultural land Ior non-agrlcuilural pupose by an assessee under lhe Act and not on the total agricultural and held byan occupier fornon agricLlltural pu'pl I Therefore, the Stale Legislature with a vew 10 removing the difficulty caLrsed b' re decisjon n Federalion ot A.P.Chambers, repea ed Act 14 of 1963 and enacted ,\ 3 .l of2006. 1l is not the case of appel antslhatb.l.veenl964and2006NALAlaxuar leviedbytheTahasrldarfortheurDa"propertresnolrtuedunderAcl 1ol 1975 Th-o rrr .i non-agficultural land assessmerr'tax rowc'/9'. viai lrnposed from 1964 til 2Aa'1 ) )) and deve opment charges were iecov-ared as and when application under Seclior 14 ol Act 1 of 1975 was made lor grant ol pernr'ssron to the Urban Develcpl rt Authorily. The preamble and the shod ttle of the Act clearly suggest that Acl 3 cl 20l' ii repeallng Acl 14 of 1963 and thc Acl 3 ot 2006 ls intended to regulate the converji ) of agricultLrral land to non agrrculh.rra pllrposcs. Act 3 of 2006 regulates convor:irr I .f agricultu.ai landfornon agriculttrra p!rposes ard evyoftaxforsuchconversio. )i , rn is prov ded for under Act 3 of 20cB Seclron 2la) ol Act 3 of 2006 defrnes agncui u € raising any crop or garden produae:or olchards cr pastures or hayricks and Sectior : b) defines agricultural land as land !s'rd tor agficLrllure llnder Sectlon 2(.). th.r 'r 'd conversron means change oI Iaid use lrom aSrcultural to non-agricultural pur[)o] s Non agricultural land means ard oin.r than tne agricullurai iand- Sectio,l 3 rirp ) ll restriclioo on conversion of agncultura land to non agricu tural purpose withoLl a or permission of the competent author b)/ The procedure for obtaintng perm ssion is covered by Seclton 4, and the Acl aLrtl o l li grant of regulation of converston ol land and one lime levy and collecton cf I . agricultural land tax. From the schenre ofthe Act. t sevldentthatpenaltyisproYirl.. .'r defaLJlt in payment of l.lALA tax aod coilection 01 land conveTs;on tax with lioe at Ij[ ] ci NALA tax. Every owner or occLtprer of agrrculture land s under obligaton :c r/ conversion tax at the rate of 97. Ioi!se of agriculLural land for non agricultural pu(ro I ; The scheme of Act 3 ol 2006 firslly rs a one lrne imposition ol tax, while requ{at n I rD conversion ofagricultural land to non agrlcultural purposes ' The tax rs payable to the Governme:t and the obtect and inlendment ol Acl 3 of lll )6 thus is regulation of land convers on and lmposri on of lax for sLrch land conversicrr. The learned counsel appearing for the appellants conlend lhat with the issu 1' :e of a notification under Section 12of Act 1 of 1975, exemption u nder Sectior cf Act 3 of 2006 is available lo the notilied lands under Act 1 of i075, and n'l li rd conversion tax need be paid under Act 3 of 2006. In other words, it is contended that with the issuance of a notifrcatlon by the Government for chanllr cf development use, there s automatic convers on ofagricultural and lor non'agrirrr iL . use and tttereby Ihe applicabil ty of Act 3 of 2006 is exempted- ln supporl I submission, some of lhe appella,lts rcly upon land use notificalion issued urlder S e ) )n 7 of Act 1 of 1975 or particlr ar change of land use permitted through indv. el notificatons issued under Section l2 ol Act 1 of 1975. According to the learned counsel for appellants. the preparation and finalrzatjon o[ master plan and zonal development planunderAclI ofl9T5orrssuanceofanotificatio.undcrSectionl2ofActl o{1975, by legal hat on deemed change of land Lrse is occasioned and aga n the levy o( tax ior conversron oi and use rs Lrnavarlable. The submiss on does nol stand to the scrutny of lLteral rnterpreiatron of SecNon 7 of Acl3 012006 Sechcn 7 of Act 3 of 2006 read as follows Acl nol lo aoplv to certain lands: r,orhrg . th: 4.1 srall applyio ,r' lands otr ra ay lhe Siale Gov:.nnent .) Lan.ls or.:C by a locai aulh.riy a.d use{l lor any communa pL.poses so o.g r ie d^o' ..-dlor.on'." Jp'rrp-a, , I/.o\ _,..t,{,.,rqrou,o,(hIrrbFpL.po!o. rl Lands usi. !)y owner icr r.!:eho d ndusl_e: .vclvr q lrad loidl occupa( on .!r Dxc..d.! .1! ac.e. ,irr -a.a: us:il i., such olh€r pL.pos.s as trra/ be .ol 1 ed by ! re Covernment lrcm La.ds us.c io: AquaculLure Da 1 and Po! lry 11 Seclron 2 (d) (xi) def nes nolification thus r' Nol i .at.. m$.s a not,lcalion plb[shed i" Lie Andhra Pradesrr Gaz elte, a.d rre worc Nor r .c sha I be corstued according i The rteral constructron of Section TofAct3 0f2006 exempts lands owned by the State Government- the local authority: lands used tor communal purposes and so long as the lands are nol used for commerc al purposes; land used lor religious or charitable purposes, land used by owner of household ndustry invo ving kadttlonal occupaton not exceedrng one acre A lew nburll or statutory exenrpt ons are provlded in the Seclion dealing wilh exempton lhrough clause (e) of Sectron 7, power is conferred on the Governmenl to exclude application ol Act 3 ot 2006 {or lands used for such other purposes, as nray bc not ired by the Governmen t from ltme to time. Scction 7 (e) of Acl 3 of 2006 confers power on lhe Government to constder ssuance oi a notification under Section 7 of Act 3 o, 2006 including a calegory of agricultural {and frorn operation ofAct 3 of 2006. Slated in simple expression. the Governmen I may under Section 7 of Act 3 ol 2006 rssue a notification exempting a category or class of lands from the application of Act 3 of 2006. ln other words, the masler plan or zonal development planlndlvidual change oIuser notifications issued under A:l]-:! ,:r5 will nol exempl the applicabilitv of Acl 3 of 2006. Therefore, the notification even, rf any issued under Act 1 of 1975, cannot be elther contended or by necessary implicatloR undelstood as excludihg application of Act 3 of 2006. For Sre above reasons, the contention urged under by relying on Sectron 7 (e) of Act 3 of 2006 is without merit and is accordingly reiected. The scope and ambit oI the Andhra Pradesh Urban Areas (Development) Act 1975 (Act 1 of 1975): Tre learned counsel tor appellants by piaclng reliance Lrpon the scheme c f \ t 1 of 1975 contends that f rstly lhe comprehensive developmentin a notified area und€ r \ct 1 of 1975 is taken care by Act 1 of 1975 and with lhe issuance of notification un( e I s Act. the change of user is effecled and no further.o.vers on of aqriculture and )" te envisagcd or payment ol land conversron tax lvould a se. On lhe contrary. lhe 'r' r 'r' Advocates Genera appear ng for respondenls coniend lhat these two enactments I lra distinct purposes and thal levy of land converslon lax Lrnder Acl 3 of 2006 is bY w r ol tax at the trme o[ conversion of agnculkrre land lor non-agricu]ture purposes and F'l of development fee under Act 1 of 1 9 75 is for developmen t use olnolilled lanc padlar I ry at the t me of deve opmenl of property ln the nolilied area. The development fee 's I rrC to the Ulban Developmenl Authorily. which is vesled with the responsibrlity oi l'( all development of urban area We propose to cxamin-'lhc sallenl leatures of Acl 1 . i I 75 and answer lhese issues The preamble of Act 't of 1975 states lhal Acl 1 ol 1975 s enacled to prc\ . . for the development of urban areas n lhe State o t Andhra P radesh according lo l,'l r | 'r:l for mafters ancillary thereto- Fronr the preamble. t rs evrdenl llrat Acl 1 of 13'r LS intended to provide ,or devclopmenl of notified urban areas accordlng to the mast:r F an and for matters ancillary thereto- We proceed to interpret the relevanl provsions ofAct I of 1975 byread.l he language of statule as lt is The words employed ,n the statule are glven natura nC ordinary meaning and that by harmoniously co.strlring all the rmportant seclions I f h-' Acl. lae scheme of lhe Act rS delermired. Section 2 (e): 'development' with its gratn5laiical variaiions rneans thi: carryinq oul of at! or any ot the works ccntemplated in 2 master plan oi zo:1:ri development pl3n relerred to in this Act, anc the carryi.rg out o{ bllildiiri. engineering! mining or olher operations in. on- ovcr or under lanC, or th? making oI any material change in any bui!ding or land anal includen relevelcpment: Provided that tor the pLltposes ol this Act, the following operations or uses oi iand shall not be deemed lo involve dev?:opmenl of the ia.C that is lc say The ca.rying out of any temporary works lai- the mainienancr,, improvemgnt or other alteralion ot any builiing, being v'lorks wh;ch do n<: materially affect the external appearance ot lhe building; The carryinq oul by a local authority o{ a.y lgmporary YJcrks requireC i.r the mainteoance or amProvement of a road, or works carried out on lanJ vrithin lhe boundaries of the rcad; The carrying out by a local authority or stalutory underlaking of any temporary works for the plrpose of insPecling, repairing or rehewing anl sewers, mains! pipes, cables or other apparatus, including the breakinE open of any street or other land for that purpose; The use of any building or other land \/ithin the cartilage purpose incidenlal to lhe enioyment ol the dweliing house as such; end The use of ahy land fcr the Pu.pose of agriculture- garden;ng .r lorestry(including af{oreslalion) and the use foa any purpese speciiied ir this clause of any building occupied together with land so used" (il (ii) (iiD (iv) (v) Seclion 2 (e) defines develoPmenl as carrying out all or any wort(s contemPlared in (l) master plan. (ll) zonal Cevelopmenl pian referred ln Act I of 1975 arld devel0pnlenl means carrying out buildog. engineering, mining or other operations in, on, over or under land. Developmenl lrJlns mak ng any malerial change ln any bu lding or land and re-devc oDrnenl. Ihrorqh prov so. the follov(lng acts arc not trealed as developmeni Ior lhe plrrposes of the Ac a) Temporary works wnrch do not mate a Iy allecl lhe appearance of the burld irig b) Carrylng oul ihe lvorks wrlh n the road a gnmerrl. c) Bepatrs lo sev./ers and dra ns etc d) Any ancillary work ca(red out for use ol any buildlng or cartilage. e) U se ot land lor agricuiture gardening or lorestry purposes The delnitron of the word clevelopnrent' on the one hand rs comprehensrve and on the other. a lew actvlres thouqh satisty lhe meanng ot development. slrll ar€) excluded lrom the meaninq c!deve opment Such exclLlsion rs prcvlded to avold L)ndrre hardship n carrying oLll a tet/ actvitrcs r. a notrfled area SlqtrrLIlr'devei.pmcnt area m-'ens any Lrb::x area or greup oI urb3rr areas declaled to ba a developmenl a.-oe under s!b-section (1) ol Se't!on 13 Seclon 2 (l) defrnes development area as urban area or qroup of urban areas declaredunderSection 13(l)cfAct 1ol 1975 Developrnent area therefore, consrstsol any urban area or group oi uban areas declared to be a developrnenl area under sub-section (1)of Section 13 Seclicn 2lo): urban area rneans.- (i) (ii) lhe area cofi'rpirsed \'rith;r the jlrijsdiclion ol lh! tluniciptsl Coriroralion oI Hyder?bad or ot a.y l'4unicipa|1Y ccnslilule4 !nder lhe Anchra Prad4sh Municipalities Act, 1965 and also any such ar?a rn lhe virrnriy as lhe Governmenl may h3ving regard lc the extenl cf. and the sccDlr for' the urbanization ot that area or other relevant co.siderations. speciiy ii this behalf, by nolifica:ion. ai:c such olher area as lhe Govcrnment may, by,'1oli,icalion, declare to be an urban area! urhich ln lhe opnl.4 cf the Clvernne.i. is Ikely to be Lrrbanized. Section 2 (o) covers [,4unicipal Colporation of Hydelabad or any area covered by any municipality constituted under lhe Andhra Pradesh Municipalities Act, 1965 together with such area in the vicinity of the Municipal Corporation or municipality, as lhe case may be, which has lhe potential for urbanrzation The Government by issuing nolifi'alion declare any area as urban area which has the potential of urbanizahon Seclion 2 (o\: zone means any one of the divisions rnto which the developmenl area lnay be divided for the purposes of developmenl under thrs Act' Section 2 (p) means zones as one of the divisions ol development area divided lor the purpose of development under this Act. The dtvisions ol zones are - reslce r1 ll, commercial industrial etc Scqlie!-.1o: Civic sr,rvsy of and l\rlaster PIan lor d-'veloprnenl area:'(1) Ih;' Aulhcr(y sha1l. e; lrcn as n'ay be- carry out a civic surve'/ ol 3nd prep3le ltJsster Plan foi 1l'e ilevelopn.rrt 3raa concorned. (2) The Masti" Plan shari ia) detine the va.ious zones ifllo !vhich the developmenl area may be div,dsrl for lhe purposes rl developn)cni and indicale lhe manner rn vrhrch Ihe ar.d i each zone is p.oposed lo be used (either alter carrYrng out developmeni thereon or otherursaj and lhe slages by which any such deveiooment shali b.: carried out:a d lb) serve as a basic prllern of frame+!crk v,/ithrn whiDlr the zlrra ciavelopmenl plans ol lhe verous zones may b9 prepared. (3) Thc Mastei Pl:r mry prcvrde lor any olher matler which is necessary lc' the proper develcpfllent of lhe development area. SecliotLZ: Zonal development plans:- (1) Srmultaneously w,lh the prep.ralion o{ Master P,an or;rs soon as may be thereatter the Authoriiy shall procee,i with lhc preparalion of zonal development plan for each ol thc zoncs intl yrhich the develop.noni area may be divided. (2)A zonal deveioprnent plan may.- (al contain a sil: plan and land use plan for lhe developmsnl oi the zo.e a1 ' shcrv lhe appforl.rrle locatrcns and exlenls oi land uses proposed in 1t' zenes for such ouipcses as roads, housing. schools, recreation, hospitals. induslry, business. markets, public works and utilities. pubhc boildinqs public and pflvate open spaces and other categories ot publac and privtrl' (b) specify the standards of Fopulation densily and building densily; Gl shov, every ar.:a in the zone urhich may, in the opinion cl the Aulhorily, b i .aquired or deala_ed for development or redevelcpme i: anC (C) in particuiar. cDi'liain provisions regarding al: or any of lhe lolls'+rx; (i) lhe division ol any site into plots for the erection ol burldingsi (ii) the allotmeht cr reservation of lands lor roads, open spaces, garder:. recreation grounds. schools, markets and olher public purpasesi Section 6 ob rgates conducl ol civil survey and preparatior of masler F i . (,r developnent area r.e. Lrrban area or group of urban areas deciared under Sect c r I ) ofActl of 1975. Thezonal developmen t area lakes care ol vanous developmen t r ,l ns envisaged in master p an S!!!a!_!-3: oealnration ol development areas and de.relcpi:1ent ol land i. those and other areas:- (1) As soon as may be aller the commencement of this Acl, where Gov-..nment consider il necessary to do so for purposes of prop€r deiretoprrieni ot any urban aiea or group ol urban areas in lhis State they ma' . by notilication, declare such urban area or gtoup of urban aleas lo be a deielopment rrea lor the purposes bf this Act. (2) The Government may, by nolilication and in accordance with such rules as may be made in this behalf- (a) exclude from a development area any area comprised therein; or (b) include in development a.ea any other area- (3) Save as otherw se provided in this Act, lhe Authorily shall nol underlake or c6rry oul any development of land in any area which is ncl a developmer ! atea. (4) After the commencement of lhis Act. no developmenl of land wilhin lhi development area shall be undertaken or carried out by any person or body including any department of the Government, unless permission for such development has been obtained in w trng lrom the authorily in accordance with the provisions of this Acl. (5) Afier lhe coming rnto opcration oi aoy oI thc F:,rfs an any arca wrthio lhc developnrent area. no developmeni shail be Lnderi:ien or carr,ed out in lhili area unless such developmenl is aiso rn accordance !vilh such Plans. (6) NolvJilhstanding anything in aay olher la!? or lh. prcvisions contained rn sub-sectrcns (4) and (5), developmenl ol any la.d'Jirderlaken rn accordance with any lalv by any person or body rncludinq any dep3rlrnet)t ol the Governmenl or any local authorrly belcre tlrc comnrencemetll ol lhts Act, may be completed without compliance wrth lhe reqrrre,nenls oi those sub' seclions. Provlded lhal such developmeni ol iand sila: ire compleleo ',r,/rlhin one year trom the dete ol commencemen! of lhis Aci. unless lhe Authority {or good and suf(icienl reasons, extends the sald perrod ol one year lor such lurther period as il deems lit. (7) After the comfiencement ol this Acl no d.--velopmert ol la:rd shall be undertake or carried oul by any pers.i or bod/ ri.lt,dinE ar)y departmcnt of lhe Government in such area ad,oininE to or in ll'. vrcrnity ol lhe developrnenl area, as may be notrtied by the Governmenl unless approval ol or sanclion ,or such developmenl has been obt3ined in wrtitng irom the local .rtithorlty concerned. in accordance with lhe provts:o.s ol r"lrvant law re alrna lhereio. including lhe larv relating lo town plrnrr;rg for tha I,j a bcang in lorcc and lho rules and regulations made lhereunder Provided that lhe local authorilY concerned mr!. rn cons(lllalron with the Arrlhorily, kame or suitably amend ils regulations rn lheir applicairon to such area adloining to or in Ihe vicinity of the developi'iient area. 8Xa) Whers any Part of the area adjoining to or in lhe vrcrnity of lhe development area, as noli{ied under sLlb section (7t ls in the prccesa of rapid developrnent or is likely to develop tn the near i,rlure. the local authorrty concerned shall. eilher on lhe directioc o1 the Go!e.nrnent or on the advice of the Authorily, prepare in consull3iion with ln,' AJlhority lowrr plarlninc scheme under the law relaling lo To'r/i. Pl:tnninq l3r the Iime beinq in lorce. and publish the schemes as required under lhaL la\! and submjl them to lhe Governmenl lor sanction. (b) Any development in the area covered by such lown plannlng schernes shall be in accordance with the provislcns ot the sahemes as sanclioned by the Government. O Where in regard lo lhe malters specilied io s!b se.!ron(7) and o, this sub_ - seclion there is a difference of opinion belween the local aulhorily concerned and lhe Authority, the matter shall be teletted lo the Governmcnt, whose decision thereon shall be rinal. (9) ln lhis section, and in Sections 14. 16 and rll the expression'Oepartment ol the Governmenl means any deparlmenl, organizrlron or public undertaking oI the State Government or ol lhe Cenlrai Governmeii. With lhe commeocement of Act 1 ol 1975, the Government considers necessary lor proper development of any urban area or group ol ulban areas rn lhe Slate, declares such urban area or group of urban areas to be a development area lor the purpose of this Act and declaration of urban area lo be a development area forthe purpose ofthis Act. The Secton mandates thal developmenl shall be strictly ln accordance with the development noti(ied under lhe Act. A person conskuctng a burlding ordeveloping land in a developmenl area app ies lo lhe authoflty lor permrssron to conslruct a building or develop land in accordance with lhe developmenl plan Section 14: Application for permission:' (1)Every person or body includrn.l a eepartrnent of the Governmenl desiring lo obtain the permission relerred I l ir1 Sectlon 13 shali make an application in wrilrng lo lhe Authority in suci fcifl and contaiii.q srch parlrcrlais in respecl of lhe developmenl lc wh a the appliaalion relates as rnay be determined by regulations. i2) Every applicallon under sub-section (1)shall be accompanied bysuch 1t, 6s niry be pr es.rrbed and a coF,_/ cl the htle deed ol the laod duly stlested b , a Gzzetted Oflicer of the Governnrenl togelher with an urban land cerlni cierrancc cerlilicale rf lhe erlenl of the lanc, erceeds the cerling limit or n' affiCavr! declaring lhat the lolal exlent of land by such holder- or his or h€, sporisa and unfiarried children does nol exceed the ceiling limil. Provided that no such lee shall be necessary in lhe case ol a. apii,aJ!ion maCe by e Deparlmenl of the Government, or any local authoril./ i3l On receiptc! en applicatio,l lor permission under sub-section (l) lh, Auihcrity, after makrng such enquiry as it consider necessary, in relation I ) an, r'atler speciliec in clause id)o( sub-seclron (2) ol section 7, or rn relalro , to ani other malier, shall by order in wriling eilher granl the permissr4r subjecl lo such ccnditrons, il any. as may be specified in lhe order or retus to giant such permrssron- (1, '/.!rDr? porrr ssio:1 is reiLrs-od. the gro!rnds ol such relusal shall b recarced in wfllrng and communicated lo Ihe applicant in the manl.e der,-rnrined by regulalions- (5r li withi nineiy days after lhe receipt ot any applicalion made under lhr : seciioi fcr perm.ssicir, or ol any Informalion or lurlher rnlormation requrrerl ur:._ iii:e3 or r+;u';i'ons. llre Au:hority has nerlher granled For retused ii per!:.rssion. such pernlission shall be deemed to have been granted, and th.l appli.anl may pro.eed to carry oul the development bul nol so as lt, cc.lravene any o! lhe provisions of this Acl or any rules or regulalions ma.J,, ur Ce: this Act iai Tre Authorir'/ shall keep a register of applcations lor permission uni. ti,s section in such Iorrn as may be alelermined by aegulalions. (7i Tne said regisler shall coniair such partrculars rncluding lnlormation as L the il.nner in y/.,.': aoplicatlcns for permission have been dealt with, as mr' be d.ler,'niied b/ :equlations aod shall be 3vailable tor inspcction by a-1l .narnb?r cl ihe p.rblic during specified hours on payment oI such lee, no' exceecing five, as n:ay be delermined by regulations. (9j 'J/here permi3sion is refused under this section lhe applicant or a.: person claiming lrrough him shall not be entitled to get relund ol lhe lee pai( on ihe app|catror l r permrssroh. Under Seclion I4, every person desiflng lo obtain the permrssron refer,e 1 a Seclron l3 shall rnake an applicalion to the authority and the applicalion containr rr :h partlculars in respect ol the development to which Ihe application relales, as flra / )e determrned by lhe regulations. Seclion '14 (2) provides for paymenl ol fee as nra, )e under i r prescnbed and Seclion 14(3) provides lor enquiry o{ application _.eceived section (1) of Section 14 and trle enquiry ior lhe purpose of sub-seclron (3) ,s rn r()s) cl of matters specilied in clause (d) ol sub'section (2)of Section 7. Thererore, lhe tre s n intending to obtain permission has lo state details ol development and the develocr r rr prescribed by regulatons and obtarn permission for executing developmenl .s I)r development plan. Seclron 15: Use oi lire land and buildings in contravention of plans:. Atler thc cofirjnq into operrtion of any o! the plahs in a aone, no pe6on shall use or permit to be used any land or building in that zone otherwise than in conlormrty with such plan: Provided lhat it shail be lawful lo continue to use Llpon such terms and conditions as may be determined by resUlations made in lhis behalf. any land or buildirq for the purpose for which, and to the exleni to whicir it is being Lrse.l on the date on which such plan comes intD forae. Likewise, Sectron 15 prohrbrts use of lanij and bLl,lc fgs n a nolified developmenl area in conlravention of the zonal development plan and also prohibrts the authoritres from granting permission for development excepl in accordance with the zonal development plan. !vrthin the maximum rale speciiied in Seclron 28. Section 27: Levy ol the development charges:' (1) Subiect to the provisicns of this Act and the rules made lhereunder, lhe Aulhority shall levy charges (hereinaiter called the development cha.ges) on the institution or (sic. oi) use or change of use of land or building or development ol any land o. building for whirh permission is required under this Act rn the r,vhole area or any parl oi the develcpment ar€ ProyiCed lhat the rales of deve!opme,rt charges mry be diifer-r.i tcr d!iferenl paris cf the developmenl area and lor dillerent uses: ProviCed lurther that the previous sanctign of lhe Gcvarnmen! has tteen oblained {cr the rates of levy. (2) Where the Authority has determifl-.d to levy developmenl charccs for the first time or at a new rate, it shall forthwith publisi a notificalion specifying the rates of levy of development charges. (3)The development charges shall be leviable on any person who instilutes ot charges any such uses, undedakes or carrias out any such de!elDpmenl. {4) Noivrithstanding anything contarned in sutr-sections (1) and (2), no development charges shall be levied on insiitutior of use or of change cf usa or development oI, any land or building vesteC in or under ihe cohlrol or possession ol the Ceniral or the Siale Governmefll or.i ahy local 3ulhority. Under Secuon 27, the authority is empowered to levy developrne.t.harges on the instllution of use as per the zonal development plan: for charges {or change ol use ol land or buiidlng, development of any land or building for which permrssron rs requrred under Act 1 o{ 1975. The development charges payable under ths Section are for ifstitution of use; change of use of land or building or oevelopment of any building or area for which a permission is required From the nature of levy undcr Section 27. it is discernible lhat the levy is a charge payable lor undertakrng development as per the notfied zonal developmenf plan to Urllan Development Authority. Section 28: Rates of Developmenf:- (IXa) For the purpose ol assessing the deveiofment charges, the use of land ahd building shall be classitied under the following calegories: (i)lnduslrial; (ii) Commercial; (iii) Residential; (iv) Agricultural; and (v) Miscellaneous. (b) ln classifying the use of land and building under any of lhe categories mentioned in clause (a), the predominanl purpose for which such land and building are used shall be the main basis for such classification. (2) The rates oI development charges shall be delermined on the proposed use of land or buildingi. l i : I i I I I I (a) in the case ol development ol land, at a rate to be prescribed per hectare lor thal area. (b) in lhe case ol development ol building, at a rate to be prescribed per square metre of floor area Ior Ihal area; (Provided that such rates of developmenl charges shall nol exceed rupees lhree hundred per square meter in the case of developmenl o{ land and rupees one hundred and twenty five per square meter in the case of develoPment ol building). Provided lurther that where land appurtenant to a building rs used tor any purpose independent of the building, developmenl charge may be levied separately lor the building and the land." The developmeft ch..rqes are payable according to the broad classificatlor sti ed rn Section 28 of the Acl Seclron 29 provrd?s for assessment and recovery of development charges l_/ he authofliy from the appi ca I developtng a propeny. Before conclud iq tre scope and the ambil ol various aspects namely long e. preamb e. definrtions eIacting clause or Iormula. operative and principal provisicn i nd admrnislral!e irrovisia.: .lAct 1 of 1975, we deem t appropriate to refer to the L r an Developmenl Authoflly Rules, 1977 lllustratively stated, the rates ol deveioFl )nt charge" Lld-, 5ecl,o^ I d c as fo lorvs' For Land For Bu ]t up area t2 & Gram rnslrtut on change o[ use a Vacant to Fesrd!r-1 b va.anr lo comtrer. ar d va.a.t lo I sce r..eo- s 75 75 100 100 50 -60*60--30 60 50 30 100 50 40 125 60 _--125 _-30'*" 125 30 a F.c:.nlr.,a lo F.. l:f!a b Fe...aho a to C.rmDrcra c Recreat onal to lnd.rslrlal d Becreatonai lo.i,,!Lic. aneous e Ae cultu.allcons.aal on or Green Belt lo Res,o!ntial 200 ?25 200 200 100 150 100 100 50 60 60 50 100 100 100 60 45 60 60 50 150 100 50 75 45 From the above it is clear that a person interested in development ( a land/ploL4luilding is reqLrired to pay the above development charges to lhe altrr( ity under Act I of 1975. Tne levy of development cha.ges is for institution of use r.e , he notilied use in lhe zona development plan, conversion fee tor change of developl )nt use from residential to commercial or as the case may be. Likewise conversion of land use from recreation lo residential, restdential to commercrai etc., ls provlded sublect lo paymenl of development charges as applicable to a category. Therefore, the ma n oblect of Act 1 ol 1975 is tor developmenl of urlcan areas according lo masler plan,'zonal deyelopment plan and provide for malters anclllary therelo The sho( rrtle ot Acl 1 ol I 3-5 ,urlher reinlorces lhe scope and Obiect of Act 1 OI 1975 as a. enactment in'enaeC fcr planned development ol notified urban areas Act 1 ol 1975 dclines development and provides for planned developmenl of urban areas To remove drfficu lics rn r..plementation of Act 1 of 1975. a lew developmenl activitles are remov'od k'm development arearurban area together with the obllgatlon to appiy for perm]sslon urrder Seclions 13, 14 and 15 otAct 1 of 1975 and this would go to show lhat the Acl ls pflrnarily concerned wilh development ot "urban area' ln accordance with master pan'zonal development plan. ln the process, the development cha:ges are pard ior nstituhon o, use or change of land use, and the payment of development fees are atlrbulable towards developmenl charges payable lo an authorily undcr the Acl by a developcr of bulldtng,4and elc.. as the case may be. but not a conversion {ee as contended the aPPellants. Re-stated wrth emphasis, in o!r considered view, Acl 1 of 1975 defines development, declares urban areas lor development and proudes for clvlc survey and preparatron o{ zonal development plan by the aulhonty. A pcrson' who undcrlakes crther construction ol a building or development of land' is requlred to pay development {ee under Sections 14 and 2? of Act 1 of 1975 to the Urban Developmenl Authorrly for undgfiaking development as paovided in lhe zonal development pian lnagivencase lf on the application ol a developer, change of land user is granted lhrough a notilicalon uncler Sect on 13 or Seclion 15, such change of land use enables lhe applcanl to ta(e up development conlrary to notified master pan/zonal development plan a ready nolifred under Section 7 ot the Acl Thereafter, lhe prohibition contained under Section 15 ol lhc Act s not attracled to such development -Therefore notilication under Act 1 ol 1975 lrom any view point cannot be treated as a converslon of land kom agnculture purpose to non-agnculture Purpose. From the scheme ol Act 3 of 2006, we are o[ the view thal conversion lax is payable for use ot agricultural land tor non agricultural purpose to the Government, whereas davelopmenl lee rs payable under Acl I ol 1975 by a developer of building/land for lnstitution of use or change of land use lo Urlcan Development Authority. These two levies namely the land conversion tax Lrnder Acl 3 of 2006 and fre developanent fee for developmenl accordrng to master plan/zonal developmenl plan a[e separate and dis[nct. ln Municipal Council, Kota, Raiasthan's case, while considenng the impact oi name of a levy, the Apex Couri held thus 'Whencver a chaTli-,nrc s made to thc evy o, tax. its validity may have lo be malnl' determrned lvrth refere.re lo lhe legslalve compelence or power to levy the sarn, anc rn adludging ii-rs si.2 the nal.,. and characler of the ta-x has lc be inevilarl del,nm ne.l at thi Lr..rir.lc ll s aqually axiomalic that once the legislalrrr, concerncd has beef lr.d lo posses: lhe power to evy the lar, lhe motive wrl whrch lhe lax ls mrroi.xi bccorne mmatenal and irrelevanl and lhe fact thal ,r w'onq reason lor eir' rs|g the ronel has been given also would nol n aN mar.e. derogate frrr rre va id ir- of rhe rax. lL-llsrlullJldlLBubb€Lcac [?]Ul!ql!,r?rs Ati::ti. |!aa v T.e Unon of lndra and Anolher AIR (1970) S( 1589 llrs Cou:1 \rh. aearfq wrlh a ahallenge lo the levy of rubber cess unde Secron l? L2) ol tire 3r:)tlArl\q! 1317 as amended in 1960 observed that the tax rl he nalur|- of excisa jr-it, does noi.ease to bc one such merely because the sl3g, of l.vy and colec-,o_',rs been as a matter ol legslatve policy shifted by aclunl prcvrdng lor rts l?vi :.rd colecilr hom lhe users of rubber. so long as th, characler ol the dlty a:, excrse duly ,s qol lost and lhe incidence ol tax remained t,l be on tlro produc o. o, rllanufac:!'e ol goods. Likewise, once lhe legislature found 10 possess -hc r{!urrcd legislat ve compelcnce to enacl the law rmFrcsing th, ta( lhc lilrllrs ol thar :orrperence cannot be judged lurther by the torm or manner ir. whr.n lrral @wer s 1:, rr(]rseo. lf :!:!rlrs) Levenlhal and Others v David Jones Ltl. AIR i1930) P: l)r trr.quej:.. arose as to the powerol the legislalure i, lmposc 'Brdge Tar s rcn tire popc, lo legislale was really in respect ol 'tax ori and. Llwas held ther.n.s Io lows , 'Th! appellants cof,.rnl rr lh:lr lho!gh drreclly imposed by the leq3alure lhe brog: i.r( rs nol a ard tar, was supporled by argument foundec , par:r.u ar o. hvo r:rr l,rs! lacis. Tfe bridge lax does nol ertend to land generall throughortNew So!t.'?valcs but ic a |mited area comprisjng the Crty ol Sydne,. andce arn speciledsr,res and lhe purpose o{ lhe tax is not that ol providing th'} publc rcvenue for llrc.ornrnon pueoses of the State but ol providing lunds for.r par1rcular scheme c'b.-llennenl No aLrlhority was vouched for lhe propos ion lheL an rmposl lad by sle_i ,e upon p.opedy wrlhin a defined area, or u@n specil,e I cassas o, propeily o upon speaiied classes o{ persons, is not within the tru., s qn l aance ol lhe tax- a (ax Nor so iar as appears has it ever been successlull conlendcd lhal reveii. farscd by siatulory inrposts for specilic purposes is nc! taxation" Srn larly. the co,rienl on of appel ants that the conversion tax virtually amo(rn s o double taxallon on lhc sarnc subleci is misconceived and thal the le!ry o r d conversron tax rs by trc Governmenl and development fee by the Urban Develo)r )r 1t Authorty ln nadhakisan Ralhi v. Additional CollectorE, lheApex Courl v.r- e considenng the comp3l:n:e ol drflerent authontres [o impose tax on lhe same s ]l l. ll matter held thus. )n rhe ghl of the aio.esard relevanl provisions of the Panchayals Acl we have t,r consider lhe question pcsed for our decision 11 is obvious lhat a cinema theatr,-' srlLaled wrlrrn lhe e,rlorial hrnrls ol local municrpaliiy or a corporation cin tu t"ruf by the coocerned munrcpalty in exercrse ol ils powers under lhe relevant Municipa Acl Bul rl lhe same theatre is also situaled within a block duly constiluted under th ) Panchayals Acl i1 would lall within the territorial limils of the concerned Janapad ) Panchayal conslitJl:d {or lhal block as laid down by SeeliO!_]lll read wilh Seclro i 104 of lhe Panchayals Acl Once that happens the concerned Janapada Panchayal would obvrously be enttled to invoke ils taxalion powers under Section 157 lor thl area w(h n its iurisdrclron and if a theatre is silualed wilhin thal area then obviously Sec_!ad5? would get attracted tor imposing the twin types of taxes mentioned b,, Sectron 157 whrch are permissible to be mposed by lhe Janapada Panchayat. ll is now well senled that the same subject matter can be covered by taxalion nets rrrposed b,/ dflerent compelenl ta-xing aulhorlhes ard there will be no double laxation rnvolved in such case We may refer in thrs conneclion lo the decision ol tnrs Court rn Illc case of il9901 3 SCC 645. Para 30 ol the report alpage 6y lays dcwn as under K 30 Where more lhan one legrslahve aulholity. such as lhe Stale eq s alure and a local or munlcpal body posscss the power lo levy a tax. tte:? rs nothrng rn the conslitulron lo prevent the same person or properly beng subjecl Io both the State and munrcpa laxal@n or lhe same ' jellsiature exercsing its power twrce for dlllerenl purposes l \v-IlCLeI S]tg[ v. State ol Puniab the Slale of Punrab in Aprrl 1977 required lhe va.rous municipal bodres in the Slale to impose tax on the sale of lndran made lorergn lquor @Re. 1 per botle w.e.f. May 20. 1977. The .nunrcrpal auLhofllres having lailed lo take aclron pursuant lo the drrective lhe Slate ol Puniab drreclly rssued a Notifrcation under Secton 90(5) ol lhe Punlab I1,l !r] c pal Corpo.alion Act, 1 976 and s lm ilar provis ion ol lhe h,4 unic ipal Acl, 1911 The pelrroner challenged lhe constrtulonal validity oi lhe said slaiules and the levy on lhe. inler ala, ground of cJoubie larahon Krishna lyei J speaking lor the Coud held (SCCp.]44,para4) *There is nolhing rn Arlcle 265 ol the Conslilutron Irom which one can sp n out lhe Conslrtutlonal vlce called double taxatlon (Bad economos may be good law and vice versa). Dealng with a somewhal similar argument the Bombay High Cou,l gave shorl shrifi lo 11 rn Western lndia Theatres Some undeservrng contenlions die hard, rather survive alter dealh. The only eprlaph we may nscribe isl Resl rn peace and don'l be rebornr Il one lhe same suuecl mallel lhe legrslatule chooses to levy la.x twlce over lhere is no inherent invaidity in lhe liscal adventure save where other prohrbitions exist.' A the c talons relied upon by the learned Advocates General appearing for the States ot Andhra Pradesh and Telangana are not considered, for lhe v ew we have ndepcndently laken on the scope and ambit of these two enactments. Having considered lhe provrsions ot bolh the enactmenls independently and after rrlcipretrng the Sections in the manner lndlcated above and by reying upon the pr nciples of law aid down by Apex Coult in KSL & lndust.ies Lld's case, we are ol ihe v ew thal lhe submlssrons o{ learned counsel appearing for the appeLlanls are de voldoi any ments and are accordingly rejecled. Hence, it is held that either the scope and lhe ambrt or paymenl ol land conversion lax and lhe Development tee under Act 3 of 2006 and Act 1 of 1975 are separate and distinct- The questron is answered accordingly Ihe iurthcr contention of learned counsel lor lhe appellants that the Uoan Development Authority cannot insist upon production of NOC from Bevenue Divisional oflicer under Act 3 of 2006 by relerence to the penaltes provided under Seclion 6 ol Act 3 of 2006, rs equally unfounded. May be thal under Section 6 ol Act 3 o12006, penalty {or recovery oi land conversion tax with hne is provided for' That does nol mean thal the Government w th a view lo synchronizing the funclioning ol all the departmenls and prevent loss of revenue cannot call upon the Urban Developmenl Authority to insist production ofNOC from the Revenue Divisional OIfcer under Act 3 o( 2006. The Udcan Development Authorit! co:skurng striclly gets jurisdrct!on to entertain an applical. r whrch conv.rs on tax rs paid under Acl 3 of 2006 and the NOC can be justified D! I reason as wel The ins slence at beslcan be lrealed a concomitant and the aull_c I can ceila nl, nsrst upon NaC kom app rcant for plocess ng the applcation made. I Seclo,l 1.1 ,1 Act 1 o[ ],qr: For the , ev,, we have laken on ques|ons (i)(ii) and exceptio r.!rr .i ije lor.fi -irtarrrsilhe nrp.rq ned common orde r daled 28.04 201 0. . For:],e reaso.s:ialad abov. i.e appeals a.e withoul merl and acco'.r _ v drsorissed As !\a irave ccfl'fr:ai the cornrnln otder datec 28.0.1.2010 we are rnc 1.- k) dispose of wnl petitions as !ollows: a) ir shall be corrfete'rl lor the Urban Development Aulhorilies or lhe Loaal Author l e! as the casa I.lay be, lo nsts( on s!l)m,ssion olc ea-ancc/perm,5s or) under lhe 2006 Act as a aa.d'or prccra.nrr1r rckrasr^! a'layouls anc b) thc land has bL,en put lo non agncLr tural usc belore lhe 2006 Acl carrc nro lorc,-- iuc'l clcarance scrmrss on sna no. be insrsLed c) Con!crsron ol lar.C ito Non aqr cu tLrral use under the provisions ol Acr 3 of 2006 is recessary elen rr the land rs covcred by Masrer Plan ard ia-.rron of layoL.r by the Developn)enl ALrrhor lv rrndi).1hc ntuv s ons olAcl 1 ol 1975 Consequently- rn,scellaneous petlions. il any pending. also stand dirip) )d No cosls- DILIP B,BHOSALE, ACJ S,V.BHATT, J Date: 28.08-2015 stP D aooo)u ra'r..0 B o,* aooo ac ,r,, 0o,*roouaa,o,o * (1990, 4 scc !06 --'--.-E a*a) , s"c ,u, @ o," ,n* o, a' E AtF 1350 sc page rr @ (,rur) . aaa .,, g(,rro', a"" 0,4 @ ,nr,(r,oo) ,"" ,oa u (aoo,), s"" u, I t2l (200518 SCC 534 - Ltl (,rrr) o aa" aon