2017 (2) TMI 286 - SUPREME COURT - Indian Laws

Head Note / Extract:
Industrial area under U.P. Indusrial Area Development Act, 1976 - claim exemption from taxation - exemption under Article 12A of the 1976 Act - Held that:- Section 12A specifically contemplates issuance of notification under proviso to clause (1) of Article 243Q and exclusion from Panchayat area is consequent and dependent upon such notification. Notification under proviso to clause (1) of Article 243Q has to be subsequent to declaration of an area as industrial development area, which itself indicates that declaration of development area under 1976 Act is not sufficient to treat an area as an industrial township. As noted above, industrial township as contemplated by Article 243Q( 1) proviso has to be specifically a public notification after consideration of relevant statutory ingredients referred therein. The exclusion of industrial development area from Panchayat has a serious consequence since persons residing within the industrial development area are immediately deprived of facilities and benefits extended to them by the respective Panchayats. The deprivation of the said benefits has to be thus a conscious decision in accordance with condition as contained in Article 243Q. In the case before us, it has not been pleaded that any notification referable to proviso to Article 243(Q)(1) has yet been issued. Thus it was rightly held by the High Court that exemption under Article 12A of the 1976 Act was not available in the facts of the above case.