Case Law Details
S.v.v.estates (swarna Palace) Vs State Of Andhra Pradesh and Others (Andhra Pradesh High Court)
Introduction: The case of S.V.V. Estates (Swarna Palace) vs. State of Andhra Pradesh revolves around the petitioner’s plea for the waiver of interest on property tax arrears. This article delves into the details of the judgment passed by the Andhra Pradesh High Court, addressing the representation made by the petitioner and the directives issued to the Municipal Corporation.
Detailed Analysis: The petitioner, aggrieved by the non-consideration of their representation for the waiver of penal amounts, presented their case before the Andhra Pradesh High Court. They contended that a government order empowered the Corporation to waive interest on property tax arrears. Despite earlier payments made by the petitioner, including penalties and interest, the Corporation failed to adjust the amounts accordingly. The petitioner’s representation remained unanswered, hindering their ability to benefit from subsequent government orders facilitating waivers.
On the other hand, the Municipal Corporation argued that the petitioner must first apply for the benefits outlined in the government order before raising grievances. They assured that upon application, the authorities would consider both the waiver claim and the pending representation.
Upon reviewing the records, the High Court recognized the petitioner’s entitlement to a refund of a specific amount as per government orders. Considering the deadline set by recent directives, the Court issued directives:
1. The petitioner can apply for the waiver as per the latest government order.
2. Authorities must adjudicate the application alongside the petitioner’s representation within four weeks.
3. The Corporation is prohibited from taking coercive actions against the petitioner during this period.
4. The petitioner can pay the arrears after deducting the entitled amount, pending the Corporation’s decision on their representation.
Conclusion: In conclusion, the Andhra Pradesh High Court’s judgment in S.V.V. Estates vs. State of Andhra Pradesh emphasizes the petitioner’s right to seek a waiver of property tax interest. The Court’s directives provide a framework for the Corporation to process the petitioner’s application while ensuring the protection of their interests. This case underscores the importance of procedural fairness in matters concerning tax liabilities and government directives.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
The short grievance of the petitioner is non consideration of the petitioner’s representation dated 21.03.2023 for waiver of penal amount to a tune of Rs.9,91,593/- which was adjusted out of the deposited amount as per the Court orders towards late payment penalty in the W.P.No.17129 of 2021 and W.P.No.43165 of 2017 and not giving credit to the same while paying the amounts i.e., Rs.25,09,386/-.
2. Heard Sri K. Jyothi Prasad, learned counsel for the petitioner, Sri M. Manohar Reddy, learned Standing Counsel for Municipal Corporation and Learned Assistant Government pleader for Municipal Administration and Urban Development.
3. Learned counsel for the petitioner in elaboration to what has been stated in the affidavit contended that, there is a Government order wherein, the 2nd respondent Corporation can waive interest on arrears of property tax. Earlier, the Corporation collected Rs.25,09,386/- from the petitioner by virtue of court orders in C.M.A.No.220/2011 towards property tax including arrears and interest. By virtue of G.O.Ms.No.34 the Corporation has to adjust Rs.9,91,593/- (which was paid towards penalty) which was collected by the authorities for which the petitioner is entitled as waiver. So far, the said amount was not adjusted by the Corporation. In view of the same, the petitioner made a representation dated 21.03.2023 and the same was not disposed of by the Corporation. Now for the present year, the Government issued another G.O vide O.Ms.No.35 dated 29.02.2024 wherein, the petitioner can waive off the interest accumulated on arrears of property tax dues up to the year 2023-24 as one time measure and the interest amount already paid by the tax payers on arrears and on current year’s property tax demand during the year 2023-24 be adjusted towards the future property tax payments & no cash refund shall be made, subject to clearance of all dues by 31.03.2024. Due to non disposal of the petitioner’s representation by the Corporation, the petitioner is unable to make any application in that regard. Until and then the Corporation adjusts Rs.9,91,593/-, the petitioner cannot claim any waiver of penalty by virtue of G.O.Ms.No.35 dated 29.02.2024 and the last date for claiming waiver application is 31.03.2024. As such, prayed to pass appropriate orders protecting the interest of the petitioner.
4. On the other hand Sri M. Manohar Reddy, learned Standing Counsel for Municipal Corporation submitted that, the petitioner without making any application availing the benefits of G.O.Ms.No.35 dated 29.02.2024, cannot raise any grievance against the Corporation. Once the petitioner makes an application claiming waiver by virtue of the said G.O, the authorities would consider and pass orders both on the application made by the petitioner and also on the representation dated 21.03.2023.
5. Perused the record.
6. The petitioner seems to have been paid an amount of Rs.25,09,386/-which include penalty and interest on the property tax. Out of the said amount, the petitioner is entitled to refund Waiver amount (penalties & interest) of Rs.9,91,593/- by virtue of the Government Orders. For the current year, the Government has issued latest G.O.Ms.No.35 dated 29.02.2024 wherein, the last date for availing waiver is 31.03.2024 for payment of total arrears and current year tax in one lump sum or in installments. By taking the facts and circumstances of the case & by virtue of deadline fixed by the authorities under the said Go as 31.03.2024, this Court is inclined to pass the following order:
(i) The petitioner is at liberty to make an application claiming waiver by virtue of G.O.Ms.No.35 dated 29.02.2024.
(ii) On such application, the authorities concerned shall adjudicate the same along with the petitioner’s representation dated 21.03.2023 and pass appropriate orders in accordance with law and communicate the same to the petitioner within a period of four (04) weeks from the date of receipt of the application made by the petitioner pursuant to G.O.Ms.No.35 dated 29.02.2024.
(iii) Till such exercise, the Corporation is directed not to take any coercive steps against the petitioner.
(iv) The petitioner shall pay the arrears after deducting the amount of Rs.9,91,593/- and the same amount would be subject to the outcome of the orders passed by the Corporation on the petitioner’s representation dated 21.03.2024.
7. With the consent of both the learned counsel, the Writ Petition is disposed of.
Miscellaneous applications, pending if any, shall stand closed.
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