In Brief
The Supreme Court held that appellants (Parivar Seva Sanstha and a charitable trust) were not entitled to exemption from property tax under Section 132 of the Gujarat Provincial Municipal Corporations Act when the Corporation levied tax under the carpet-area method (Section 141AA). The Court found that Section 132's exemption applies only to rateable-value assessments, while carpet-area taxation is governed by Sections 141AA-141F—a separate, self-contained code. The Court also upheld Rule 8B(4)(i) classifying all hospitals and clinics (whether charitable or commercial) under one tax multiplier, finding it a reasonable classification under Article 14 that promotes administrative uniformity and eliminates discretion-driven disputes. The appeals were dismissed.
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