NEW MANEK CHOWK SPINNING AND WEAVINGMILLS CO. LTD. AND O vs MUNICIPAL CORPORATION OF THE CITY OFAHMEDABAD AND ORS.

The Supreme Court ruled that the method of levying tax based on flat rate per floor area under the Bombay Provincial Municipal Corporation Act, 1949, violated Article 14 of the Constitution as it lacked rational classification and did not adhere to the prescribed method of assessing rateable value based on rental value. The Court held that the rules allowing the Commissioner to specify machinery as part of 'land' for taxation were invalid due to excessive delegation of legislative power. Consequently, the assessment made by the Ahmedabad Corporation was declared unlawful.