SPENCER & CO. versus STATE OF MYSORE & OTHERS

SPENCER & CO. versus STATE OF MYSORE & OTHERS

The Act and the impugned property tax are not discriminatory; the scheme of taxation by market value and uniform rate is reasonable and bears relationship to actual or potential income. The classification between land appurtenant to buildings and excess vacant land is valid in public interest. The procedure in s. 98 for the levy of a new tax need not be followed, as the lands were previously assessed to property tax.

Parties
Appellant: Spencer & Co.; Respondent: State of Mysore; Respondent: Respondent No. 2
Jurisdiction
India
Judgment Date
27 April 1971
Procedural Posture
Civil Appeal / Final Judgment on Appeal by Special Leave
Outcome
Appeal dismissed
Legal Topics
Discrimination Under Article 14, Property Tax, Classification of Land, Procedure for Levy of Tax
Constitutional Law Municipal Taxation Discrimination Under Article 14 Property Tax Classification of Land Procedure for Levy of Tax

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Parties

Spencer & Co.

Appellant

State of Mysore

Respondent

Respondent No. 2

Respondent

Procedural Posture

Civil Appeal / Final Judgment on Appeal by Special Leave

Legal Issues

  1. 1 Whether the property tax imposed on vacant land under s. 99(2)(b) of the City of Bangalore Municipal Corporation Act, 1949 (as amended by 1964 Act) is discriminatory under Article 14 of the Constitution
  2. 2 Whether the procedure in s. 98 for levy of a new tax ought to have been followed for the impugned tax

Ratio Decidendi

The Act and the impugned property tax are not discriminatory; the scheme of taxation by market value and uniform rate is reasonable and bears relationship to actual or potential income. The classification between land appurtenant to buildings and excess vacant land is valid in public interest. The procedure in s. 98 for the levy of a new tax need not be followed, as the lands were previously assessed to property tax.

Court Disposition

Appeal dismissed