GOVERNMENT OF TAMILNADU vs AHOBILA MATAM

The Supreme Court held that the proviso to Section 3(1) of the Madras Inams (Assessment) Act, 1956 does not apply to lands held by religious institutions, thus making such lands liable for full assessment. The Court distinguished between grants made to institutions and those made for service, concluding that the lands in question were granted for the benefit of the Matam and not subject to service tenure. The Court also ruled that the imposition of assessment does not violate Article 26 of the Constitution, as it does not impose a special burden on the religious institution but a general one applicable to all landowners in the State.