Rajkot Municipal Corporation vs The State Of Gujarat

The Supreme Court upheld the High Court's decision that the Rajkot Municipal Corporation could not charge property tax arrears from Avenue Supermarts Limited for the period prior to their acquisition of ownership on 03.09.2015, as per Sections 139 and 140 of the Gujarat Provincial Municipal Corporation Act, 1949. The Court affirmed that the Appellant-Corporation's demand for tax dues, including penalties and interest, was unjustified for the period before ownership transfer. The Appellant-Corporation was directed to refund the excess property tax collected along with interest, confirming the High Court's ruling.