| ASPECTS | DETAILS |
|---|---|
| Case Title | Rajkot Municipal Corporation vs. State of Gujarat & Ors. |
| Introduction | Appeal by Rajkot Municipal Corporation against a High Court order directing a refund of property tax. |
| Factual Background | Avenue Supermarts Limited acquired a property with prior unpaid property tax dues. The Rajkot Municipal Corporation demanded payment from them. |
| Legal Issues | Whether the new owner (Avenue Supermarts) is liable for property tax arrears accrued before their ownership. |
| Applicable Law | Sections 139 and 140 of the Gujarat Provincial Municipal Corporation Act, 1949. |
| Analysis | The High Court determined that liability for unpaid taxes before the transfer of ownership cannot be imposed on the new owner. |
| Conclusion | The Supreme Court upheld the High Court’s order for refunding the excess tax paid by Avenue Supermarts. |
| Current Scenario | The appeal by Rajkot Municipal Corporation was dismissed, and the refund was upheld. |
SOURCE – SUPREME COURT OF INDIA
