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A.N.TIWARI SECRETARY TO GOVERNMENT"

The appellant, Bhadrachalam Paper Boards Limited, established a factory on an extent of about 507 acres 10 guntas of land in Sarapaka Village in the scheduled areas of Khammam district. The land was acquired by the State for the purpose of the appellant. The appellant says that it completed the construction of the factory in 1979 and commenced production on and from Ist October, 1979. When a demand was made by the Tehsildar in the year 1980 for payment of NALA in respect of the said land, the appellant submitted that by virtue of G.O.Ms. No.201 dated December 17, 1976, it is not liable to pay the said tax. Representations were also made to the Collector and the Secretary to the Government in Revenue department. Notwithstanding that the matter was being considered at higher levels, the Mandal Revenue Officer continued to issue demand notices from time to time. Ultimately, on Februray 14, 1990, the authorities under the Act raised a demand in a total sum of Rs.23,10,149.50p for the fasli years 1393 to 1399 [1983-84 to 1988-89] and for another sum of Rs.3,07,850/- [for the year 1989-90] and sought to attach the movables of the appellant. In those circumstances, the appellant filed a writ petition [No.3091 of 1990] in the High Court of Andhra Pradesh for issuance of an appropriate writ, order or direction declaring the said demand of NALA as illegal and unenforceable and to direct the respondents not to take any action to collect the said assessment from the appellant. It may be noticed that the writ petition was filed sometime prior to May 2, 1990, on which date the aforementioned G.O.Ms. No.386 was issued.