AHMEDABAD: The Gujarat high court on Friday issued a notice to the Ahmedabad Municipal Corporation
and the state’s advocate general after Adani Gas Ltd questioned the
levy of property tax on its pipelines meant for gas distribution in the
city.

According to case details, the civic body raised a bill of
Rs 5.53 crore towards property tax on its gas pipelines laid
underground across the city. The tax has been calculated from 2005.

The company paid the amount in March this year, but questioned the
validity of the levy. When things could not be solved, the company moved
the high court challenging the legality of such taxation. Before the
court, the company has contended that the pipelines have been laid
underground and serve the public. On a property that is not in the form
of a building or construction above the ground or on land, property tax
cannot be levied, the company’s counsel submitted.

Besides, the company also questioned the provisions under which the AMC levied property tax – section 141(B) of the Bombay Provincial Municipal Corporation
(BPMC) Act. It was submitted that the provision speaks of levying tax
on buildings in the corporation area, but is silent on the limit on land
tax. And this is ultra vires to Article 243 of the Constitution.

After the hearing, a bench of Chief Justice Bhaskar Bhattacharya
and Justice J B Pardiwala sought an explanation in this regard from AMC
as well as from the state’s highest legal officer. Further hearing has
been scheduled three weeks later.