GODHRA BOROUGH MUNICIPALITY vs GODHRA ELECTRICITY CO. LTD.

The Supreme Court held that under Section 73 of the Bombay Municipal Boroughs Act, 1925, a rate on non-residential buildings is leviable on a capital basis, with the capital value determined by reliable data provided by the assessee. The Court clarified that while the actual cost of construction could be considered, the figures in the company's balance sheet were not reliable for this purpose. The judgment emphasized that English law could inform the interpretation of similar Indian statutes unless explicitly contradicted. The case was remanded for valuation using the contractor's method as per established principles.