| Headnote |
Gujarat Provincial Municipal Corporations Act, 1949: s. 129, 141AA, 132(1)(b) – Imposition of property tax – Power of Municipal Corporation – Appellants, charitable trusts, running clinics/hospitals seeking exemption from levy of general tax in terms of clause (b) to sub-section (1) of s. 132, in cases where the Corporation has exercised the option to levy property tax on carpet area method u/s. 141AA; and challenging r. 8B(4)(i) on the ground that it is unconstitutional, illegal and arbitrary as it violates the principle of equality enshrined u/Art. 14 – Held: ss. 129 to 141A are grouped together and are applicable when property tax is payable on annual letting value/annual rateable value, whereas provisions from ss. 141AA to 141F apply when property tax is payable on the basis of carpet area method – Exemption under clause (b) to sub-section (1) of s. 132 only applies when general tax is payable under sub- section (1) to s.132 rw s. 129 - Clause (b) to sub-section (1) of s. 132 per se and ex facie does not apply to taxes payable in terms of s. 141AA on the basis of the carpet area method – Thus, it cannot be held that clause (b) to sub-section (1) of s. 132, which grants exemption to buildings and lands or portions thereof solely occupied and used for public worship or for public charitable purposes, would apply when property tax is calculated and is payable on the basis of the carpet area method, which is to be computed and calculated in accordance with the provisions of s. 141AA to s. 141F – Furthermore, the ‘use factor’ enlisted clause (b) to sub-rule (4) of r. 8B is a separate category; the category being grantable schools run by public charitable trusts, boarding- lodging-hostels run by public charitable trusts, and religious institutions, dharma-shala, ashram, and library – Appellant No.2 Trust cannot claim any parity with the said ‘use factors’, even though the hospital/clinic run by them are run by public charitable trusts – Sub-clause (i) to clause (a) to sub-rule (4) of Rule 8B enlists all buildings used as hospitals, dispensaries, clinics, maternity homes, etc – All hospitals, dispensaries, clinics, maternity homes etc., have been classified under one head, and thereby the levy of taxation in such cases simplifies and is uniform – Classification made vide sub-clause (i) to clause (a) to sub-rule (4) of Rule 8B is not discriminatory and violative of Art. 14 – Object and purpose is to avoid litigation and complexities which may arise in case there is a distinct and separate taxation of hospitals, clinics, maternity homes, etc., stated and claimed to be run for charitable purpose – Sub-clause (iv) to clause (a) to sub-rule (4) of Rule 8B applies to educational and social institutions run by public charitable trusts for the welfare of women, old people, deaf, dumb, blind, physically handicapped or mentally retarded people – These are separate categories and cannot be confused and treated similarly and at par with hospitals, clinics, maternity homes, etc, as elucidated in sub-clause (i) to clause (a) to sub-rule (4) of Rule 8B – Furthermore, there can be crudities or inequities in complicated experimental economic legislation but on that account alone it cannot be struck down as invalid – Taxation (Amendment) Rules 20019 – r. 8B(4)(i). |
