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of <h1>Indian Oil Corp liable for property tax on storage tanks under Andhra Pradesh Panchayat Raj Act</h1> <h3>Indian Oil Corporation Ltd. Versus A.P. Industrial Infrastructure Corporation Ltd. & Others</h3> Indian Oil Corporation Ltd. Versus A.P. Industrial Infrastructure Corporation Ltd. & Others - TMI Issues Involved:1. Liability of Indian Oil Corporation (IOC) to pay property tax on storage and water tanks.2. Interpretation of 'building' and 'house' under the Andhra Pradesh Panchayat Raj Act, 1994.3. Applicability of property tax to storage tanks under the provisions of the Act.Issue-wise Detailed Analysis:1. Liability of Indian Oil Corporation (IOC) to pay property tax on storage and water tanks:The Indian Oil Corporation Limited (IOC) challenged the common judgment of the High Court of Andhra Pradesh, which upheld the demand for property tax on the value of storage and water tanks situated in the industrial development area of Cuddapah. The property tax was demanded under The Andhra Pradesh Panchayat Raj Act, 1994. The High Court dismissed the writ petitions filed by IOC, holding that property tax is payable under the provisions of the Act. The Supreme Court, in this judgment, also dismissed the appeal and writ petition filed by IOC, affirming the High Court's decision.2. Interpretation of 'building' and 'house' under the Andhra Pradesh Panchayat Raj Act, 1994:The central question was whether the storage and water tanks could be termed as 'building' within the meaning of Section 2(3) of the Act and be covered by the definition of 'house' in Section 2(19) of the Act. The Act defines 'building' expansively to include various structures such as houses, outhouses, shops, stables, latrines, sheds, huts, walls, and other similar structures. The term 'house' is defined as a building or hut fit for human occupation, whether as a residence or otherwise, and includes shops, factories, workshops, warehouses, and buildings used for garaging or parking buses or as a bus stand, cattle shed, poultry shed, or dairy shed.3. Applicability of property tax to storage tanks under the provisions of the Act:IOC argued that the LPG storage tanks and water storage tanks do not fall under the definition of 'house' as they are not fit for human occupation and are merely pressure vessels used for storage purposes. However, the Supreme Court noted that the definition of 'house' includes buildings used for various purposes, including warehouses. The Court emphasized that the term 'house' is inclusive and not restricted to structures fit for human occupation. The Court referred to various legal definitions and concluded that storage tanks qualify as buildings and warehouses, which are included in the definition of 'house' under the Act.Conclusion:The Supreme Court affirmed that the storage and water tanks of IOC are subject to property tax under the Andhra Pradesh Panchayat Raj Act, 1994. The Court held that the expansive definitions of 'building' and 'house' under the Act encompass such structures, and the property tax levied on them is valid. The appeal and writ petition filed by IOC were dismissed with costs.
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