Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Constitution of India-Art. 14--Assessment of Annual Rental Value of Holding Rules 1993-Rule 3(1)(a) and (c |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Constitution of India-Art. 14--Assessment of Annual Rental Value of Holding Rules, 1993-Rule 3(1)(a) and (c)--Patna Municipal Corporation Act-Classification of holding-Notification issued under Rule 3(2) classifying "road''-Notification under Rule 5(1) specifying rates of rental value- Validity--Principles applicable in case of taxing enactments and Art. 14--Classification made by Municipal Corporation-A mere possibility of a better classification- No ground to strike down classification made by Rule as discriminatory-Order of High Court striking down clauses (a) & (c) of sub- rule ( 1) of Rule 3 and also two notification as violative of equality clause-In-supportable in law.Having regard to various factors under the scheme of taxation in vogue till the Assessment of Annual Rental Value of Holding Rules, 1993 came into force the government felt that the system provided ample room for corruption and arbitrariness. With a view to eliminate such abuse corruption or arbitrariness that the 1993 Rules were made and notified in the Bihar Gazette. After publication of the same the Patna Corporation issued two notifications dated September 8, 1992. Under the first notification issued under Rule 3(2), the Corporation classified the roads in Patna city into three categories. In the second notification issued under Rule 5(1), the Corporation has specified the rates of rental value per square foot depending upon the situation, use and nature of construction of the holdings.The validity of the 1993 Rules was challenged. The High Court struck down clauses (a) and (c) of sub-rule (1) of Rule 3 as being violative of the equality clause enshrined in Article 14 of the Constitution of India. The High Court held that the classifications made under Rule 3(1), in the case roads and in the case of types of construction were wholly inadequate and incomplete and were therefore bound to lead to the result quite unrelated to the actual letting value of the holdings. The High Court suggested an enlargement of the classification. It was then held that the division of the municipal corporation area with reference to roads was bad and that it should have been done on the basis of zones. Regarding the two notifications, the High Court found that they were equally indicative of the slip shod manner in which the scheme was sought to be implemented. It was held that so far as the notification issued under Rule 5(1) was concerned, the counter affidavit did not disclose the objective materials that went into consideration for determining the rates.Dealing with the notification issued under rule 3, the High Court observed that the classification suffered from complete non-application of mind to the details. Accordingly, both the notifications were declared bad and inoperative. This appeal was filed against the order of the High Court. |
Judge | Hon'ble Mr. Justice B.P. Jeevan Reddy |
Neutral Citation | 1995 INSC 39 |
Petitioner | State Of Bihar And Ors. |
Respondent | Sachchldanand Kishore Prasad Sinha And Ors. |
SCR | [1995] 1 S.C.R. 256 |
Judgement Date | 1995-01-16 |
Case Number | 772 |
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