Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Imposition of rate on vacant land 1935 Government of India Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Municipality- imposition of rate on vacant land -Whether rate to be based on annual value or capital value of land - Whether rules ultra vires-History of rates in England and India - Government of India Act, 1935 (26 Geo. 5 ch. 2), Seventh Schedule, List I, item 55, List II, item 42 - Bombay Municipal Boroughs Act, 1925 (Bom. 18 of 1925), ss.73, 75, Rules 243, 350 - A. A suit was filed by the appellant• to challenge the imposition of a rate by the Municipal Corporation of Ahmedabad on vacant lands situate within the municipal limits. The rate was levied under section 73 of the Bombay Municipal Boroughs Act, 1925, read with explanation to s. 75 of the Act. The Municipality framed rule 350-A for rating open lands which provides that the rate on the area of open lands shall be leviedat 1 per centum on the valuation based upon capital. The contention of the appellants was that reading the two rules together, the rate was levied at a percentage of the capital value of open lands and that the municipality could not do. Rule 350-A read with rule 243 was ultra vires ss. 73 and 75 in as much as it permitted the fixation of rate at a percentage of capital value and that was not permitted by the Act. The word "rate" used in s.73 had acquired a special meaning by the time the Act came to be passed and meant a tax on the annual value of lands and buildings and not on their capital value. It was also contended that if the Act permitted the levy of a rate on a percentage of capital value of the lands and buildings, that was ultra vires the Provincial Legislature. It was further contended that the assessment based on rule 350·A read with rule 243 was ultra vires and the assessment list prepared pursuant to the said rule was illegal and void. The trial court held that rule 350-A read with rule 243 was illegal and void and beyond the authority given to municipality under s. 73 of the Act. The trial Court granted the relief claimed by the appellants. The High Court reversed the order of the trial court and the appellants came to this court after getting a certificate. |
Judge | Honble Mr. Justice K.N. Wanchoo |
Neutral Citation | 1963 INSC 76 |
Petitioner | Patel Gordhandas Hargovindas |
Respondent | Municipal Commissioner, Ahmedabad |
SCR | [1964] 2 S.C.R. 608 |
Judgement Date | 1963-03-28 |
Case Number | 253 |
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