Adani Gas questions Ahmedabad Municipal Corporation tax on pipeline

The Gujarat high court on Friday issued a notice to the Ahmedabad Municipal Corporation and the state's advocate general after Adani Gas Ltd questioned the levy of property tax on its pipelines meant for gas distribution in the city.
According to case details, the civic body raised a bill of Rs 5.53 crore towards property tax on its gas pipelines laid underground across the city. The tax has been calculated from 2005.

The company paid the amount in March this year, but questioned the validity of the levy. When things could not be solved, the company moved the high court challenging the legality of such taxation. Before the court, the company has contended that the pipelines have been laid underground and serve the public. On a property that is not in the form of a building or construction above the ground or on land, property tax cannot be levied, the company's counsel submitted.
Besides, the company also questioned the provisions under which the AMC levied property tax - section 141(B) of the Bombay Provincial Municipal Corporation (BPMC) Act. It was submitted that the provision speaks of levying tax on buildings in the corporation area, but is silent on the limit on land tax. And this is ultra vires to Article 243 of the Constitution.
After the hearing, a bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala sought an explanation in this regard from AMC as well as from the state's highest legal officer. Further hearing has been scheduled three weeks later.