Andhra Pradesh High Court Directs Municipal Corporation To Decide Representation On Waiver Of Interest On Property Tax Arrears

The Andhra Pradesh High Court, while restraining the Municipal Corporation from taking coercive steps against the petitioner, directed the corporation to decide representation on a waiver of interest on property tax arrears.

The bench of Justice Ravi Cheemalapati has observed that the petitioner seems to have been paid an amount of Rs. 25,09,386 which includes penalty and interest on the property tax. Out of the said amount, the petitioner is entitled to a refund of the waiver amount (penalties and interest) of Rs. 9,91,593 by virtue of the government orders. For the current year, the government has issued the latest G.O.M. No. 35 dated February 29, 2024, in which the last date for availing of a waiver is March 31, 2024, for payment of total arrears and current year tax in one lump sum or in instalments.

The petitioner has assailed the non-consideration of the petitioner's representation for waiver of the penal amount, which was adjusted out of the deposited amount as per the court's orders towards late payment penalties and not giving credit to the same while paying the amounts.

The petitioner contended that there is a government order wherein the 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 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 the penalty) that was collected by the authorities, for which the petitioner is entitled to a waiver. So far, the amount has not been adjusted by the corporation.

The petitioner submitted that the petitioner made a representation, and the same was not disposed of by the corporation. The government issued another G.O., vide G.O.Ms.No.35 dated February 29, 2024, in which the petitioner can waive off the interest accumulated on arrears of property tax dues up to the year 2023-24 as a one-time measure, and the interest amount already paid by the taxpayers on arrears and on the current year's property tax demand during the year 2023-24 will be adjusted towards future property tax payments, and no cash refund shall be made, subject to clearance of all dues by March 31, 2024. Due to the non-disposition 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 February 29, 2024, and the last date for claiming the waiver application is March 31, 2024.

The Municipal Corporation submitted that the petitioner, without making any application availing of the benefits of G.O.Ms. No. 35 dated February 29, 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 will consider and pass orders both on the application made by the petitioner and also on the representation dated March 21, 2023.

The court held that the petitioner is at liberty to make an application claiming waiver by virtue of G.O.Ms. No. 35 dated February 29, 2024. On such application, the authorities shall adjudicate the same along with the petitioner's representation, pass appropriate orders in accordance with the law, and communicate them to the petitioner within a period of 4 weeks from the date of receipt of the application made by the petitioner pursuant to G.O.Ms. No. 35 dated February 29, 2024.

Counsel For Petitioner: K Jyothi Prasad

Counsel For Respondent: GP

Case Title: S.v.v.estates (swarna Palace) Versus The State Of Andhra Pradesh and Others

Case No.: Writ Petition No: 6655/2024

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