{"id":194804,"date":"1996-12-18T00:00:00","date_gmt":"1996-12-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/power-grid-corporation-of-india-vs-state-of-a-p-rep-by-secretary-on-18-december-1996"},"modified":"2017-06-24T17:55:48","modified_gmt":"2017-06-24T12:25:48","slug":"power-grid-corporation-of-india-vs-state-of-a-p-rep-by-secretary-on-18-december-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/power-grid-corporation-of-india-vs-state-of-a-p-rep-by-secretary-on-18-december-1996","title":{"rendered":"Power Grid Corporation Of India … vs State Of A.P. Rep. By Secretary, … on 18 December, 1996"},"content":{"rendered":"
Andhra High Court<\/div>\n
Power Grid Corporation Of India … vs State Of A.P. Rep. By Secretary, … on 18 December, 1996<\/div>\n
Equivalent citations: 1997 (1) ALT 134<\/div>\n
Author: S S Quadri<\/div>\n
Bench: S S Quadri, R B Reddy<\/div>\n<\/p>\n
<\/pre>\n
ORDER<\/p>\n
Syed Shah Mohammed Quadri, J.<\/p>\n
1. The short question that arises in this writ petition is whether the sub-station of electricity meant for transmission of electric energy would fall within the meaning of ‘industrial purpose’ Under Section 2(d) of the A.P. Non-Agricultural Lands Assessment Act, 1963 (for short the ‘NALA’) Act. On the following facts the aforesaid question arises.\n<\/p>\n
2. The petitioner is a Corporation registered under the Companies Act. National Thermal Power Corporation (NTPC) generates energy and the petitioner-Corporation transmits the same from Ramagundam Thermal Station, to various parts of the State of A.P. To ensure smooth flow of electric supply along with the transmission lines, A.P. Grid Switch is located besides other equipments on the land in question measuring Ac. 32.33 guntas in Kothagudem village of Kamepalli Mandal of Karimnagar District. There is a control room and the accessories on the land. And a 400 KV sub-station is also installed on that land. The Mandal Revenue Inspector, Kamepalli, 4th respondent herein assessed the tax under Section 4 of the NALA Act on the land in question and demanded a sum of Rs. 1,12,172-75 ps. for the assessment years 1398 Fasli to 1402 Fasli by the notice dated June 2,1992. Aggrieved against the said notice the petitioner filed an appeal before the 3rd respondent, who dismissed the appeal on August 20,1993. The petitioner then questioned the validity of that order before the Revenue Divisional Officer, Kothagudem, the second respondent herein. That revision petition was also dismissed by the second respondent on February 8, 1994, which was communicated to the petitioner by proceedings dated 12-3-1994. It is the validity of that order that is questioned in this writ petition.\n<\/p>\n
3. Sri A. Gopal Reddy, learned Counsel for the petitioner, submits that the second respondent has gravely erred in coming to the conclusion that the activity carried on by the petitioner on the land in question falls within the meaning of ‘industrial purpose’. The learned Special Government Pleader for Taxes submits that as the petitioner reduces the voltage of the electricity in the sub-station located on the land in question, that activity would be ‘industrial purpose’ for the purposes of the NALA Act.\n<\/p>\n
4. These contentions take us to the question as to whether the activity carried on by the petitioner would fall within the meaning of ‘industrial purpose’ under the NALA Act. Section 2(d) of the NALA Act defines ‘industrial purpose’ in the following terms:\n<\/p>\n
“Industrial purpose’ means any purpose connected with an industrial undertaking where the process of manufacturing any article is carried on with the aid of power and includes a purpose connected with excavation, underground or otherwise where any operation for the purpose of searching for, or obtaining a mineral has been or is being carried on;\n<\/p>\n
Explanation:- In this clause, “power” means electrical energy or any other form of energy which is mechanically transmitted as is not generated by human or animal agency.”\n<\/p>\n
From a perusal of the above definition it is evident that any purpose connected with an industrial undertaking where the process of manufacturing any article is carried on with the aid of power it would be an industrial purpose. The definition also includes the purpose connected with excavation, underground or otherwise where any operation for the purpose of searching for or obtaining a mineral has been or is being carried on. But we are not concerned with this limb of definition. For this purpose we have to confine our discussion to the question as to whether the activity carried on by the petitioner would amount to process of manufacture.\n<\/p>\n
5. As mentioned above, the activity of the petitioner is the transmission of electrical energy to the State of A.P. In the process the voltage of the electrical energy is reduced. Even accepting that electricity is an article or goods, it cannot be said that the activity of reducing voltage would fall within the meaning of ‘industrial purpose’. Though generating the electricity would undoubtedly fall within the meaning of ‘industrial purpose’, as in the sub-station of the petitioner the activity of generation of energy is not being carried on, that activity is being carried on at some other place by NTPC and the petitioner is merely receiving the electricity generated by the NTPC and is transmitting it to A.P. State; in our view this activity does not amount to process of manufacturing any article so as to be brought within the meaning of ‘industrial purpose’ under Section 2(d) of the NALA Act.\n<\/p>\n
6. In Workmen, Delhi Elec. Supply Undertaking v. Management,  the Supreme Court<\/a> considered the question whether the sub-stations and zonal stations are ‘factories’ within the meaning of the Factories Act. While considering that question it was observed that” it cannot be said that any manufacturing process either takes place in the sub-stations or in the zonal stations and they do not satisfy the definition of “factory” under Section 2(m) of the Factories Act.” The above observation supports the view we have taken that the transmission of electricity does not amount to process of manufacture.\n<\/p>\n
7. Inasmuch as it is not disputed that the population of the village where the petitioner’s sub-station is situate is less man 10,000 and that that use of the land for non-agricultural purpose would be taxable under the NALA Act only when the purpose falls under Section 2(d) of the NALA Act viz., for industrial purpose. As we have held that the activity carried on by the petitioner is not an ‘industrial purpose’, no tax can be assessed under the NALA Act.\n<\/p>\n
8. In this view of the matter we quash the order of the second respondent and the impugned demand. The writ petition is accordingly allowed, but, in the circumstances without costs.\n<\/p>\n
9. At this stage the learned Government Pleader submits that it may be left open to the respondents to assess non-agricultural assessment tax if the population of the village exceeds the limit specified in the schedule. It is needless to mention that this judgment is delivered on the ground that the population is less than 10,000, which is an admitted fact and therefore it would have no application where the population exceeds 10,000.<\/p>\n","protected":false},"excerpt":{"rendered":"
Andhra High Court Power Grid Corporation Of India … vs State Of A.P. Rep. By Secretary, … on 18 December, 1996 Equivalent citations: 1997 (1) ALT 134 Author: S S Quadri Bench: S S Quadri, R B Reddy ORDER Syed Shah Mohammed Quadri, J. 1. The short question that arises in this writ petition is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,8],"tags":[],"class_list":["post-194804","post","type-post","status-publish","format-standard","hentry","category-andhra-high-court","category-high-court"],"yoast_head":"\nPower Grid Corporation Of India ... vs State Of A.P. Rep. 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