Composition of taxes in factory areas.

202. Composition of taxes in factory areas. - (1) Subject to such rules as may be prescribed, when the owner of any industry or factory established in any panchayat area 149 provides sanitary and other amenities for the buildings and land used for the industry or as factory quarters for employees and for other purposes connected with the undertaking the Grama Panchayat may in lieu of the taxes, rates or fees, payable under this Act in respect of such buildings and lan ds receive such amount annually as may be agreed upon between the Grama panchayat and such owner. (2) Where no such agreement as is referred to in sub -section (1) can be reached, the matter may be referred to 1[the Chief Executive Officer]1 and 1[the C hief Executive Officer]1 may, after giving to the Grama panchayat and the owner concerned an opportunity of being heard, determine the amount payable by such owner and such determination shall be binding on the Grama Panchayat and such owner. 2[The Chief E xecutive Officer shall settle the matter within three months from the date of receipt of such reference and before making such reference such owners shall pay compulsorily fifty percent of the rates or tax or fee in question to the Grama Panchayath and th e Chief Executive Officer shall accept the reference only after such payment of fifty percent of rates or tax or fees]2 (3) The 1[Government]1 may by not ification direct that the provisions of sub -section (1) shall be applicable to such other establishments as may be specified in such notification.