VIJAYAWADA: The Andhra Pradesh High Court has categorically ruled that population figures cannot be artificially increased for the purpose of tax collection.
The court made it clear that governments are not permitted to adopt different definitions for official population figures.
While hearing a petition filed by CG Venkata Subbaiah, owner of Lakshmi Venkateswara Restaurant and Bar, who had sought a reduction of the RET from `55 lakh to `35 lakh, as the population of Mydukur Municipality is below 50,000, the court observed that the population definition prescribed under law cannot be altered or modified.
It directed that Retail Excise Tax (RET) for bars must be levied strictly based on official population data, adhering to scientific and statutory standards.
Noting that no population census has been conducted after 2011, the High Court stated that the population figure cannot be increased under any circumstances. It ruled that the 2011 Census, being the only legally available data, must be taken as the basis for fixing Retail Excise Tax.
As per rules, municipalities with a population of less than 50,000 are liable to pay a Retail Excise Tax of `35 lakh.
Justice Tarlada Rajasekhar Rao delivered the judgment recently and held that the proceedings issued by the Kadapa District Excise Officer were invalid.
It also directed authorities to reconsider the petitioner’s request afresh and take a decision in accordance with law within six weeks.
As per the 2011 Census, Mydukur Municipality has a population of 45,790. However, excise officials had fixed the RET at `55 lakh by claiming that the population exceeded 50,000. The court found fault with the Municipal Commissioner’s calculation of a 1.9 percent population growth and fixation of the total population at 56,310, stating that such estimates lacked any scientific validity.