2017 (2) TMI 286

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....tate Government to consider the appellant's representation. The representation submitted by the appellant was rejected by the Principal Secretary, Panchayat Raj vide its order dated 23rd June, 2014. The State Government held that although the area has been declared as industrial area under U.P. Indusrial Area Development Act, 1976 but no notification having been issued as industrial township within the meaning of Article 243Q( 1) proviso of the Constitution, the Zila Panchayat/Nagar Panchayat is entitled to realise tax and appellants cannot claim exemption from taxation by local authority. Aggrieved by the order of the State Government, appellants filed a Civil Misc. Writ (Tax) No.447 of 2014 claiming the following reliefs: "A. Call for the records of the case; and issue writ, order or direction in the nature of certiorari quashing the order dated 2362014 passed by respondent No.1 (Annexure 8 to this writ petition). B. Issue writ, order or direction in the nature of mandamus directing the respondent Nos.2, 3 and 4 not to realise any taxes from the members of petitioner No.1 (as mentioned in paragraph No.10 of the writ petition and other members of petitioner No.1). C. I....

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....he provisions of Section 12A are not attracted. It has been stated by the State that no notification notifying the area as industrial township has yet been issued. Learned counsel appearing for the U.P. State Industrial Development Corporation submits that in the writ petition the appellants have only prayed for mandamus restraining respondent Nos.2 to 4 from realising any tax. No relief having been claimed against respondent No.5 the writ petition has rightly been dismissed by the High Court. 9. We have considered the submission made by the learned counsel for the parties and perused the records. 10. The U.P. Industrial Area Development Act, 1976 has been enacted to provide for the constitution of an authority for the development of certain area in the State into industrial township and for matters connected therewith. Section 2 subsection (d) defines industrial development area which is to the following effect: "Section 2(d)" industrial development area" means an area declared as such by the State Government by notification." 11. Under Section 3, the State Government, by notification, can constitute an Authority to be called Industrial Development Authority for industrial d....

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....to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit by public notification, specify to be an industrial township. 2. In this article, "a transitional area", "a smaller urban area" or "a larger urban area" means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in nonagricultural activities, the economic importance or such other factors as he may deem fit, specify by public notification for the purposes of this Part." 14. Article 243Q mandates constitution of a municipality in every State, constitution of Nagar Panchayat, Municipal Council and Municipal Corporation in every State respectively for a transitional area, a smaller urban area and a larger urban area respectively. The provisio to Article 243Q( 1) contemplates a circumstance where a Municipality under Article 243Q( 1) may not be constituted in an urban area or part thereof, when such area is specified by a notification having regard to the following circ....

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....tuting Panchayat in various villages including the said industrial development area should be allowed since, notification under Section 2(d) of the 1976 Act has already been issued on 11th July, 1989. The State Government categorically stated that no notification under proviso to Article 243Q( 1) has been issued. The Division Bench of the High Court referring to Section 12A has rejected the contention and dismissed the writ petition. In paragraphs 6,7 and 8 following was stated: "6. From a plain reading of Section 12A of the Act it is clear that after declaration of any industrial development area u/s. 2 (d) of the Act two things are required for excluding them from existing panchayat area. First is, specification to be an industrial township and secondly a notification under Proviso to Article 243Q of the Constitution of India. 7. From Section 12A it further reveals that if the said area is included in panchayat area, such area with effect from the date of notification made under proviso (proviso to Article 243Q) stands excluded from such panchayat. Thus, specification to be an industrial township as well as a notification under proviso to Article 243Q are condition precedent....