PARIVAR SEVA SANSTHA versus AHMEDABAD MUNICIPAL CORPORATION

Citation: [2022] 18 S.C.R. 648 · Decided: 24-11-2022 · Supreme Court of India · Bench: SANJIV KHANNA · Disposal: Dismissed

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2022] 18 S.C.R.
PARIVAR SEVA SANSTHA
v.
AHMEDABAD MUNICIPAL CORPORATION
(Civil Appeal No. 2773 of 2012)
NOVEMBER 24, 2022
[SANJIV KHANNA AND J. K. MAHESHWARI, JJ.]
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
[2022] 18 S.C.R. 648
648
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(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).
Dismissing the appeals, the Court
HELD: 1.1 It is crystal clear that ss. 129 to 141A of the
GPMC Act are grouped together and are applicable when property
tax is payable on annual letting value/annual rateable value,
whereas provisions from Sections 141AA to 141F of the GPMC
Act apply when property tax is payable on the basis of carpet
area method. There are no good ground and reason to hold that
clause (b) to sub-section (1) of Section 132 of the GPMC Act,
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 Section 141AA to Section 141F of the GPMC Act. [Para 2][656-
D-F]
1.2 Chapter XI of the GPMC Act deals with municipal
taxation and sub-section (1) to Section 127 stat

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