STATE OF GUJARAT vs M/S ARVIND MILLS & OTHERS

The Supreme Court upheld the High Court's decision to quash the proviso to Rule 81(2) of the Gujarat Land Revenue (Amendment) Rules, 1977, on the grounds that it was ultra vires Article 14 of the Constitution, being arbitrary and discriminatory. The Court found that the retrospective levy of revenue on non-agricultural land without proper authority violated Section 214 of the Land Revenue Code. The appeals by the State of Gujarat were dismissed, affirming the High Court's ruling against the validity of the Amendment Rules.