MUNICIPAL CORPORATION OF GREATIOR BOMBAY AND ANR.versusINDIAN OIL CORPORATION LTD.

           MUNICIPAL COR.pOR.ATION OF OR.EATIOR
                   BOMBAY ANP ANR.
                                       v,
                 INDIAN OIL COR,PORATION LTO.

                          NOVEMB!'R. 27, 1990

       [S. RANOANATHAN AND K RAMA$WAMY, JJ,]

     Bomb(ly Mrmicipal Corporation Act, 1888-Se!'/ions 3(r), 3(s),
143 anif 154-Petroleum storage t!lnk-Whether bµild/ng, s(rµc(µre, or
land-Exigible to property tqx,

      Words and Phrases-'Land', 'building'-Meqning <Jf.
                                                                                   c

      The respondent-Oil .Col]>Orntion took I! pil!fe of l!llld on leasll
from the lJomb!ly Port Trw;t for 30 years from February 19{il !11!!1 p11t
up si11 oil tanks for storage llf petrol llllcl p!-'troJeUID products, 11part
from other strudµres !llld buildings.

       For the ye,.r 1964-65 tlte appe1J1111t-Mu11ic!pal C(lrpol'l!tion fixed a
sum as the rateable v11lue of the Installations oil th• demlsell property
consisting pf the buildillgs, structures and tanks. Tb• J!lvestigllting
11fficer, on objections raised by the respon!lent, rectuce!l the r11teable
value, the rateable value of th• tanks being fixed on the basis of the
capacity of each llf the tanks.

         On appeal to the Court pf Small Causes as against rateable value
of the tanks, the Additim1al Chief Judge foun!l that the tanks fell within
the dermition of 'land' or 'builcling' in Sl!ftl1111 3(r) and 3(s) of th•
Bombay Municipal Corporation Act, 1888 !llld are liallle to pr11perty              F
tall'. \lnder the Act. Accordingly, the rate111lle v11lue 11f the tanks fixed by
the Corporation was upheld.

       On further appeal, the Hlglt Court llllowed the appeal holiJing
tllat the tanks are neither structure nor 11 building nor laud under the
Act.                                                                               0

       In ·the appeaf to this Court by the Municipal Corporation the
question was whether the storage tauks of petroleum products are
"lands" within the meaning of section 3(r) or "buildings" as defme!l
11ncler section 3(s) of the Bombay Municipal Corporation Act, 1888 and
are •J<igible to property tax.

                                      365
      366         SUPREME COURT REPORTS                 [1990] Supp. 3 S.C.R.

            Allowing the appeal, this Court,
A
            HELD: 1. The expression 'building' includes the fabric of which it
      is composed, the ground upon which its walls stand and the ground
      within those walls because the ground would not have a separate
      existence, apart from the building. [371G-H]
B
             A tank to be a building must be a structure designed for either
       habitation or shelter for human habitation or storage of inanimate
       objects in storehouse or stable for horses shed or a hut etc. within the
       four corners of the waUs built with masonary or otherwise with ingress
       or egress. [372A-B]

c            The word, 'building' must be given its ordinary natural meaning
       ascribable to it Including the fabric and the ground on which it stands.
       On a mere look at the tank, by no stretch of bnagination, it could be
       said to be a building. [372A-B]

D            The dermition of the word, 'building' is an inclusive definition
       bringing within its ambit house, out-house, stable, shed, hut and every
       other such structure, whether of masonary, bricks, wood, mud, metal
       or auy other material whatever. [372B-C]

             The tank does not answer any of the descriptive particulars. [372C]
E
             2. The house or building, etc. must be coustructed in accordance
       with the Master Plan and the Building Regulations conformable to the
       statutory requirements like drainage/Sewage regulations. The cons-
       truction of the tank is not required to be within the parameters of these
       regulations. Thereby tauks cannot be construed to be a structure, [3721).E]
F
        The structure must be an entity In itself, although not necessarily
  a building in itself, adopted to the particular purpose it serves. In its
  ordinary sense a structure is something which Is constructed by way of
   being built as is a building. But method of construction by itself is not
  conclusive. Structure by itself may not be a building but it may be
G analogous to a building, outhouse, shed, hut or a stable. Ship is like a
  floating building hut it is uot a structure. A crane, gentry or a turnable
  is a structure but is not a building. Weighing bridge is a structure.
  Tilting furnaces mains are In the nature of structure. [378E-F]

           3. The dermition of 'land' also is of an inclusive definition. Its
    H accompanhneuts are land, which is being built upon or Is built upon or
                       MUNICIPAL CORPN. v. 1.0.C                       367

covered with water; benefits to arise out of land; things attached to the
                                                                              A
earth or permanently fastened to anything attached to the earth and
rights created by legislative enactment over any street. [378H-379B]

      4. If the tanks are situated within a plant they would be integral
parts of the plant and get exempted from assessment under section 154
of the Act, hut there exist no such plant on the demised site. Harmo-         B
nious.construction must be adopted consistent not only with the princi-
ples of taxation to make rateable value hut also those relating to income-
tax, wealth-tax etc. [380G-H]

       5, The tanks, thongh, are resting on earth on their own weight
without being fixed with nuts and bolts, they have permanently been
erected without being shifted from place to place. Permanency is the
                                                                              c
test. The chattel whether is movable to another place of use in the same
position or liable to be dismantled and re-erected at the later place? If
the answer is yes to the former it must be a moveable property and
thereby it must be held that it is not attached to the earth. 1f the answer
is yes to the latter it is attached to the earth. [382D-E]                    0

      6. The petroleum products are being stored through pipes and
are ta.ken out by mechanical process. The operational mechanisation
also though relevant, is not conclusive. The rateable is based on the
rent, which the building or land is capable to fetch. Due to erection of
the tanks whether the value of the demised property had appreciated or        E
not, Is also yet another consideration. When the tanks are erected and
used for commercial purposes, the value of the demised property would
get appreciated. The annual letting value is capable of increase. How-
ever, the rate of increase is a question of fact but the fact remains that
the value of the land gets increased by virtue of erection of the storage
tanks. Considering from this perspective it is held that the petroleum        F
storage tanks are structures or things attached to the land within the
definition of Sections 3(s) and 3(r) of the Act. Thereby they are exigible
to property tax.1382G-383Hl

      D. C. Gouse & Co. etc. v. State of Kera/a & Anr. etc., [1980] 1
S.C.R. 804; C.l. T. Andhra Pradesh v. Taj Mahal Hotel, Secundrabad, G
[1972] 1S.C.R.168; S.P. Jain v. Krishna Mohan Gupta & Ors., [1987]
1 SCC 191; S.P. Gupta, etc. etc. v. Union of India & Ors. etc. etc.,
[1981] Suppl. S.C.C. 87; Cardiff Rating Authority and Cardiff Assess-
ment Committee v. Guest Keen Baldwin's Iron and Steel Company
Ltd., [1949] l Kings Bench Division 385; B.P. Refinery (Kent) Ltd. v.
Walker (Valuation Officer), [1957] 2 Queen's Bench Din.ion 305; Shell- H
    368         SUPREME COURT REPORTS               [1990] Supp. 3 S.C.R.

A   Max (B.P.Ltd.) v. Childs (Valuation Officer), [1962] 9 Ryde Rating
    Cases 182 (C.A.); Shel/ Max & B.P.Ltd. v. Holyoak, [1958] 1 Weekly
    Law Reporter 331; Shell-Max & B.P.Ltd. v. Holyoak (valuation of-
    ficer), [1959] 1 Weekly Law Reporter 188, referred to.

          New Manek Chowk Spinning and Weaving Mills Co. Ltd. and
B   Ors. v. Municial Corporation of the City of Ahmedabad & Ors., [1967]
    2 S.C.R. 679; K.N. Subramaniam Chettiar v. M. Chidambaram Servai,
    [1940] Mad. 527; Perumal Naicker v. Ramaswamy Kone and Anr.,
    [1969] Mad. 346; Chaturbhuj Morarji v. Thomas J. Bannet & Ors.,
    (1905] 29 ILR BOM. 323; J.H. Sinha v. Govindrao. Bhiwaji & Ors.,
    A.I.R. 1953 Nagpur 224, distinguished.
c         Blacks Law Dictionary, Fifth Edition; Webster Comprehensive
    Dictionary, International Edition; Stroud's Judicial Dictionary, Fourth
    Edition; Oxford English Dictionary; Rating Valuation Practice by Bean
    and Lockwood, Fifth Edition-Referred to.

D         CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2002
    of 1975.

         From the Judgment and Order dated 27th/28th March, 1974 of
    the Bombay High Court in Appeal No. 117 of 1969.

E         N.B. Shetty, J.B. Dadachanji, S. Sukumaran and D.N. Mishra
    for the Appellants.

          Kapil Sibal, Additional Solicitor General, S.S. Shroff, Mrs. P.S.
    Shroff, R. Sasiprabhu, Ms Neelina Roy and N. Salve for the Respondent.

F         The Judgment of the Court was delivered by

         K. RAMASWAMY, J. This appeal by special leave is against
  the judgment by the Division Bench of the Bombay High Court dated
   March 27/28, 1974 in First Appeal No. 117 of 1969. The respondent
   had on lease a piece of land admeasuring 17, 279 square yards from the
G Bombay Port Trust for 30 years from February, 1961 at a rent of
   Rs.9,482.34 per month for the first 15 years and Rs.11,852.92 per
   month for the remaining period and put up apart from other structures
   and buildings six oil tanks for storage of petrol and petroleum pro-
   ducts. Each tank rests on a foundation of sand having a height of 2 ft. 6
   inches. There is a four inches thick asphalt layer to retain the sand.
H The steel plates were spread on the asphalt layer and the tank was put
           MUNICIPAL CORPN. v. 1.0.C lK. RAMASWAMY, J.]              369

on the steel plates which acts as bottom of the tanks which rests freely
                                                                            A
on the asphalt layer. There are no bolts and nuts for holding the tanks
on to the foundation. The tanks remain in the postilion by its own
weight. Each tank is about 30 ft. in height and 50 ft. in diameter
weighing about 40 tons. The total weight of the tank filled with
petroleum products would be about 7, 160 tons. Each tank has a stair-
case along the side. Each of the tanks is connected with the pump           B
house with the pipes for pumping petroleum products into the tank
and sending them back to the pump house having a diameter of
8' X 14'. The distance between the pump house and tanks varies bet-
ween 50 fts. to 300 fts.

      For the year 1964-65 the appellant fixed a sum of Rs.l,27.380 as
the rateable value of the installations on the demised property consist-
                                                                            c
ing of the buldings, structures and tanks. The Investigating Officer, on
objections raised by the respondent, reduced the rateable value to
Rs.84,660 i.e. Rs.13,980 being the rateable value of the buildings and
structures. and the balance i.e. Rs.70,680 being the rateable value of
the tanks. The rateable value of the tanks was fixed on the basis of the·   D
capacity of each of the tanks. On appeal to the Court of Small Causes
at Bombay, as against rateable value of the tanks, by judgment dated
December 5, 1968, the Additional Chief Judge found that the tanks
having been constructed of mild steel plates and structurals fell within
the definition of 'land' or 'building' in Section 3(r) and 3(s) of the
Bombay Municipal Corporation Act, 1888 (for short 'the Act') and are        E
liable to property tax under the act. Accordingly the rateable value of
the tanks fixed by the corporation was upheld. On further appeal, the
High Court allowed the appeal holding that the tanks are neither
structure, nor a building nor land under the act.

      The crucial question, on the facts as found by both the courts        F
narrated earlier is whether the storage tanks of petroleum products are
"land" within the meaning of Section 3(r) or "buildings" as defined
under section 3(s) of the Act and are exigible to property tax. Section
3(r) defines land thus:

            "land" includes land which is being built upon or is built      G
            upon or covered with water, benefits to arise out of land,
            things attached to the earth or permanently fastened to
            anything attached to the earth and rights created by legisla-
            tive ·enactment over any street".

Section 3(s) defines 'building' thus:                                       H
    370         SUPREME COURT REPORTS                [1990] Supp. 3 S.C.R.

A               "building" is defined to include "a house, out-house
                stable, shed, hut and every other such structure whether of
                masonary, bricks, wood, mud metal or any other material
                whatever".

          In Chapter VIII under the heading "Municipal Taxation",
B
    Section 139 is the charging section empowering the municipal corpora-
    tion to impose:

          1. Property Taxes;

                (Other entries are not relevant, hence omitted).
c
         Section 143(a) authorises to levy general tax on building and land
    or portions thereof. (Exempted properties are not relevant. Hence
    omitted).

          Section 154 deals with the procedural part to quantify rateable
D
    value which reads thus:                                ·

                "( 1) In order to fix the rateable value of any building or
                land assessable to a property tax, there shall be deducted
                from the amont of the annual rent for which such land or
                building might reasonably be expected to let from year to
E
                year a sum equal to ten per centum of the said annual rent
                and the said deduction shall be in lieu of all allowances for
                repairs or on any other account whatever".

                 "(2) The value of any machinery contained or situate in or
               · upon any building or land shall not be included in the rate-
F
                 able value of such building or land".

           The general tax shall be levied on all the buildings and the lands
    in Greater Bombay except those exempted under clauses (a) to (c) and
     sub-section (2) and (3) of Section 143. Section 154 provides the
     macllinery to fix the rateable value and the value of the machinery
G
    contained or situated in or upon any building or land shall not be
     included in the rateable value of such building or land. The annual rent
     which the building or land might reasonably be expected to fetch is the
     basis to fix the rateable value of the building or land. It is, therefore,
    clear that any buliding or land situated in Greater Bombay is exigible to
H    property tax.
            MUNICIPAL CORPN. v. 1.0.C lK. RAMASWAMY, J.l              371

        The question is whether the petroleum storage tank is building or    A
land"

     In Blacks Law dictionary, Fifth Edition, the word 'building' has
been defined thus:
                                                                             B
              "Structure designed for habitation, shelter, storage, trade,
              manufacture, religion, business, education and the like.
             A structure or edifice enclosing a space within its walls and
             usually, but not necessarily, covered with arnof".

      In Webster Comprehensive Dictionary, International Edition,
'building' has been defined thus:                                            c
             "An edifice for any use; that which is built, as a dwelling
             house, barn, etc. (2) The occupation, business or art
             of constructing. (3) The act or process of erecting or
             establishing".
                                                                             D
      Building has been defined in Stroud's Judicial Dictionary, fourth
Edition at 334. What is a 'building' must always be a question of
degree and circumstances; its "ordinary and usual meaning is, a block
of brick or stone work, covered in by a roof". The ordinary and natural
meaning of the word 'building' includes the fabric and the ground on
                                                                             E
which it stands.

       In the Oxford English Dictionary the word 'building' has been
defined to mean, "that which is built, structure, edifice, structure of
the nature of a house built where it is to stand". In D. C. Gouse & Co.
etc. v. State of Kera/a & Anr. etc., (1980] 1 SCR. 804. In the context of
                                                                             F
Entry 49, List Ii of VII schedule to the Constitution (Taxes on lands
and buildings) under the Kcrala Buildings Act, 1975, this Court held
that the word 'building' means "that which is built; a structure
edifice". The natural or ordinary meaning of a building is, "a fabric of
which it is composed, the ground upon which its walls stand and the
ground embraced within those walls". Vnder the inclusive definition
                                                                             G
of that Act it was held that a house, out-house, garage or any other
structure cannot be erected without the ground on which it is to stand.
The expression 'building' includes the fabric of which it is composed,
the ground upon which its 'Nalls stand and the ground within those
walls because the ground would not have a separate existence, apart
from the building.                                                           H
    372         SUPREME COURT REPORTS                [1990] Supp. : S.C.R.

         Thus it is clear that a tank to be a building must be a structure
A
    designed for either habitation or shelter for human habitation or stor-
    age of inanimate objects in storehouse or stable for horses shed or a
    hut etc. within the four corners of the walls built with masonary or
    otherwise with ingress or egress. The word building must be given its
    ordinary natural meaning ascribable to it including the fabric and the
B   ground on which it stands. On a mere look at the tank, by no stretch of
    imagination, it could be said to be a bulding.

           The definition of the word 'building' is an inclusive definition
    bringing within its ambit house, out-house, stable, shed, hut and every
    other such structure, whether of masonary, bricks, wood, mud, metal
    or any other material whatever. The word 'building' was defined as an
c   inclusive definition. Shri Salve, learned counsel for the respondent,
    contended that with the definition of the 'building' talks of a struc-
    ture, it would be a structure analogous to a house, out-house, stable,
    shed or hut. The tank does not answer any of the descriptive particu-
    lars. The house or building, etc. must be constructed in accordance
D   with the Master Plan and the Building Regulations conformable to the
    statutory requirements like drainage/sewage regulations. The cons-
    truction of the tank is not required to be within the parameters of these
    regulations. Thereby tank cannot be construed to be a structure.
    Undoubtedly there is no independent definition of the word 'structure'
    in the Act. It is true that building. house or any out-house etc.
E   required to be constructed in conformity with the building regulations
    and drainage and sewage requirements, etc. But every construction
    made need not necessarily be in conformity therewith. Take for inst-
    ance a hut. A hutman cannot conform his construction to the statutory
    requirements. Equally many a time buildings are constructed by deli-
    berate deviation of the statutary requirements. It is not uncommon
F   that illegal constructions are compounded by collecting the compound-
    ing fee and regularised the illegal constructions. Therefore, the test of
    construction in conformity with the statutory requirement is not con-
    clusive test though is a relevant one yet we have to consider whether
    the tank is a structure in its legal perspective. We have to consider the
    meaning of the word 'structure' in the light of the legislative purpose to
G   fix the rateable value under the Act. The burden of tax is on the
    building or land and not on the tenant as under the British Statutes.
    Undoubtedly if the statutes have been understood by reference to the
    words, building and its analogous accompaniments including a hut, it
    would be referable to a house within the four corners of walls or a hut
    within the four corners of a shed for habitation of human being or
H   animals or storage purpose. But the definition being an inclusive defi-
            MUNICIPAL CORPN. v. I.O.C [K. RAMASWAMY, J.]                   373

rtition which intends to enlarge the scope of the definition, the mean-
                                                                                  A
ing of the word 'struciure' must be understood in that setting.

      In C.I. T. Andhra Pradesh v. Taj Mahal Hotel, Secundrabad,
[ 1972] 1 SCR 168 this Court considering the scope of the meaning of
the word 'plant' held, "where a word is not defined in a statute, it must
be construed in its popular sense, i.e., that sense which people con-             B
versant with the subject matter with which the statute is dealing, would attri-
bute to it. The word 'includes' is generally used to enlarge the meaning
of words or phrases used in the statute so that, words and phrases may
be construed as comprehending not only such things as they signify
according to their nature and import, but also these things which the
interpretation clause declares that they shall include. The fact that
even books have been :ncluded in 'plant' shows that the meaning given
                                                                                  c
to 'plant' is wide. It should cover s_anitary and pipe-line fittings".

      In S.P. Jain v. Krishna Mohan Gupta & Ors., [1987) 1 SCC 191
this Court held that law should take pragmatic view of the matter and
respond to the purpose for which it was made and also take cognizance             D
of the current capabilities of technology and life style of the community.
It is well settled that the purpose of law provides a good guide to the
interpretation of the meaning of the Act. (emphasis supplied) The
legislative futility is to be ruled out so long as interpretative possibility
permits.
                                                                                  E
       In S. P. Gupta, etc. etc. v. Union of India & Ors. etc. etc., [1981)
Suppl. SCC. 87 interpreting Section 123 of the Indian Evidence Act,
this Court held that the Section was enacted in the second half of the
last century, but its meaning and content cannot remain static. The
interpretation of every statutory provision must keep pace with chang-
ing concepts and the values and it must, to the extent to which its               F
language permits or rather does not prohibit, suffer adjustments
through judicial interpretation so as to accord with the requirements of
the fast changing society which is undergoing rapid social and
economic transformation. The language of a statutory provision is not
a static vehicle of ideas and concepts and as ideas and concepts change,
as they are bound to do in any country like ours with the establishment           G
of a democratic structure based on egalitarian values and aggressive
developmental strategies, so must the meaning and content of the
statutory provision undergo a change. It is elementary that law does
rtot operate in a vacuum. It is not an antique to be taken down, dusted,
admired and put back on the shelf, but rather it is a powerful instru-
ment fashioned by society for the purpose of adjusting conflicts and              H
    374         SUPREME COURT REPORTS                 (1990] Supp. 3 S.C.R.

A   tensions which arise by reason of clash between conflicting interests. It
    is, therefore, intended io serve a social purpose and it cannot be
    interpreted without taking into account the social, economic and poli-
    tical setting in whrch it is intended to operate. It is here that a Judge is
    called upon to perform a creative function. He has to inject flesh and
    blood in the dry skeleton provided by the legislature and by a process
B
    of dynamic interpretation, invest it with a meaning which will har-
    monise the law with the prevailing concepts and values and make it an
    effective instrument for delivering justice.

          Since the enactment of the Act, enormous research and scientific
    development has taken place in the construction technology of storage
c   tanks etc. The petroleum products are highly inflamable and highly
    dangerous liquid which cannot successfully be stored without taking
    careful precautions with modem technology for its storage. The erec-
    tion and storage must be according to law or relevant rules. Therefore,
    the court would not fold its hands and say that the legislature had not
    had in its view the storage tanks at the time of making law as one of the
D
    subjects for fixation of rateable value and ask the legislature to make
    the amendment to the act. If it could be possible to give an interpreta-
    tion consistent with the purpose and scheme of the act and the nature
    of the property sought to be assessed for rateable value, the court
    could always endeavour to give that interpretation which would sub-
    serve the purpose of the Act. If it, otherwile, becomes not possible, the
E   court is left with no option but to leave it to the legislature to amend
    the law.
                            I
          The question, therefore, is whether storage tank is a structure?

         In Stroud's Judicial Dictionary 4th Edition, Vol. 5, at page 2638
F
    the word 'structure' has been defined in diverse ways according to the
    intendment of a particular Act. In its ordinary sense, it is stated thus:

                "In its ordinary sense, means something which is cons-
                tructed in the way of being built up as is a building.

G               Although the question what is a structure is a question of
                fact, the question what is a structure within the meaning of
                a particular statute or regulation is a mixed question of law
                and fact".

          At page 2640 it is stated thus:
H
           MUNICIPAL CORPN. v. I.0.C [K. RAMASWAMY, J.l               375

           "Structure" (Valuation and Rating (Scotland) Act 1956
                                                                             A
           (c.60), s. 8(1). Within the meaning of this provision a
           "structure" must be an entity in itself, although not necessa-
           rily a building in itself, adapted to the particular purpose it
           serves.

            The mere use of part of a building for a qualifying purpose      B
            is not sufficient ....... The word, however, is wide
            enough in this context to include erections that would not
            normally be described as buildings".
                                                    (emphasis supplied)

      In Cardiff Rating Authority" and Cardiff Assessment Committee v.
Guest Keen Baldwin's Iron and Steel Company Ltd., [ 1949] 1 Kings
                                                                             c
Bench Division 385. construing the word "in the nature of building or
structure" within the meaning of the plant and machinery (Valuation
for Rating) Order, 1927, Schedule I, Class 4, which describes various
items, in the Courts of Appeal, Denning L. J. considering whether
blast furnaces, melting furnaces and coke ovens are structures, held         D
thus:

            "in the "nature of structure'', and a structure is often not a
            building; a crane gantry or a turnable is a structure, but not
            a building''.
                                                                          E
Jenkins, J. held that it is not possible to give an exhaustive definition
of what is meant by the words "is or is in the nature of a building" or
"stru_yture". They do, however, indicate certain main characteristics.
 The general range of things in view consist of things built or con-
structed. It must answer the description of buildings or structures, or,
at all events, be in the nature of building or structures. The question F
whether a thing is or is not physically attached to the hereditament,
certainly is a relevant consideration, but it cannot be regarded as con-
clusive against its being a building or structure or in the nature of a
building or structure. He concluded on the test of "feat of engineer-
ing" that tilting furnaces, and mains were structures or in the nature of
structures within the meaning of the above order.                         G

       In B.P. Refinery (Kent) Ltd. v. Walker (Valuation Officer),
[ 1957] 2 Queens Bench Division 305. the Valuation Officer assessed
the topping unit occupied in the refinery to rateable as a "still" within
the meaning of Class 4 of the Schedule to the Plant and Machinuy
(Valuation for Rating) Order, 1927. It was contended that it is not          H
    376         SUPREME COURT REPORTS                 [1990] Supp. 3 S.C.R.

    assessable to rateable value. Lord Evershed M.R. laid emphasis that
A
    the items intended to be made, subject to rates, are not collections of
    individual items making a "plant", but are rather the specific com-
    ponent items themselves-so far, of course, as they satisfy the second
    qualification of being individually, structures or buildings, or of tnat
    nature. Denning L. J. held at page 328, thus:
B
               . 'But a thing may be in the nature of a structure, even though
                 it is not built up on the site, but is brought there all in one
                piece. The nature of the thing depends on its characteristics
                when•erected, not on whether it requires a feat of engineering
                 to bring it there. Take, for instance, the soda flash tower. It
                 is 25 feet high, 4 feet in diameter, weight 9 1/2 tons, as
c                bolted to the ground and surrounded at its base by a fire-
                 proof wall 8 or 10 feet high, If it had been built up on the
                 site, it would be regarded by everyone as a structure, just
                 asmuchas a "water tower with tank" (which is expressly
                 mentioned in the Third Schedule). Although this tower
D                was not built up on the site, it is of the same nature as if it
                 had been. It is of the nature of a structure and is rateable.

                By contrast take the condensers. They are cylinders filled
                with a bundle of tubes. They are 16 feet long, nearly 3 feet
                in diameter, weigh 3 1/4 tons and are placed horizontally
E               one above the other. No one looking at one of those by
                itself would say it was a structure or in the nature of a
                structure. It is just a piece of plant.

                The accumulator, which is a metal tank 36 feet long, 8 feet
                in diameter, weighing 13 tons and resting in a steel cradle
F               on reinforced concrete piers. Contrast this with the crude
                sattler. which is metal tank 38 feet long, 9 feet in diameter,
                weighing 46 tons and rests on reinforced concrete piers.
                The only appreciable difference between these two tanks is
                that a crude settler weighs 46 tons and the accumulator 13
                tons. Yet the Lands Tribunal has found that the crude set-
G               tler is in the nature of a structure, but that the accumulator
                is not. The reason the Tribnual give for the distinction is
                that the transport of the crude settler to the site should be
                regarded as a "feat of engineering", but that the transport
                of the accumulator could not be so regarded. I do not think
                that is the right test. I should have thought it was a feat of
H               engineering in each case. In any case, it is a mistake to
            MUNICIPAL CORPN. v. I.O.C [K. RAMASWAMY, J.]               377

             substitute the test "feat of engineering" for the words of
                                                                              A
             the statute. I should have thought that each of these enor-
             mous and permanent tanks was in the nature of a structure
            just asmuchas "water towers with tanks" mentioned in the
             Third Schedule. The test of feat of engineering was
             rejected.
                                                    (emphasis supplied)       B

In Shell-Max & B.P. Ltd. v. Childs (Valuation Officer), [1962] 9 Ryde
 Rating Cases 182 (C.A.) heavily relied on by Sri Salvle, the Court of
Appeal had to consider the question whether three oil storage tanks
comprised in a hereditament (the two larger ones each having a capac-
ity of a million and a half gallons) were brought to a site in metal
sections, which were there fitted and welded or reveled together with         c
mechanical means being used to lift them into position on ·a base
carefully prepared of hardcore and sand and in some cases also asphalt.
 Roof trusses were inserted and the roof or lid was placed on them. The
two larger tanks were also surrounded by brick walls with sand or
concrete or both filling the space between. Lord Evershed, M.R.,              D
 Upjohn and Diplock L. JJ. (as their Lordships were) held that the
word, 'building' should not be given an unduly or unnaturally narrow
 meaning because of its association with those two examples. On the
other hand, the distinction between building and structure which
shows at least this, that 'structure' must have the wider embrace, not
every structure is not a building, though it may well be that every           E
building is a structure. In other words, looking at the context of the
provision, it was held that the word 'building' is to he given its ordinary
sense, not unduly restricted, not unduly expanded, the ordinary sense
 in which it is used. It was held that oil ~torage tank was not a building.

      In Shell-Max & B.P. Ltd. v. Holyoak, [1958] 1 Weekly Law F
Reporter, 331 the appellant Company constructed an underground
petrol container beneath the pumps of a petrol station. The container
consisted of a concrete base with brick walls 9" thick having a cement
rendering. Concrete cradles rested on the base on which was placed a
metal cylinder 13". 6" long by 7" in diameter capable of containing
3,000 gallons of petrol. The space round the outside of the cylinder G
was packed with dry sand and the whole was covered with slabs of
reinforced concrete except for the manhole through which the cylinder
was filled: The lands Tribunal held that the brick and concrete
structure was liable to be rated, but that the metal cylinder was not in
the nature of a building or structure, within Class 4 of the Schedule to
the plant and Machinery (Valuatuon for Rating) Order, 1927, being a H
    378         SUPREME COURT REPORTS                 [1990] Supp. 3 S.C.R.

    moveable piece of apparatus and, accordingly, was not liable to be
A
    rated as a 'tank'. On appeal Lord Evershed M.R. held that the installa-
    tion on the hereditament was in its entirety, including the metal cylin-
    der, a 'tank' for the purposes of the Order of 1927, and, since the
    whole of it was in the nature of a structure and was rateable to tax in
    its entirety. On further appeal the House of Lords in Shell-max & B.P.
B   Ltd. v. Holyoak (Valuation Officer), [ 1959) 1 Weekly Law Reporter
    188 held per majority that the metal cylinder alone did not fall to be
    rated as part of the hereditament. It was a tank housed in a structure
    and not part of a tank formed by the whole installation, and reversed
    the decision of the Courts of Appeal. In that regard while construing
    whether underground petrol storage tank was a building or structure,
    majority of the House of Lords rejected the theory of functional entity
c   but accepted "physical entity" as a test. While so construing the order,
    it was held that the tank is used as per the licence as metal cylinder and
    not a complete installation and on that premise the majority concluded
    that it is not rateables. Lord Keith of Avonholm and Lord Denning
    dissented and held that cylinder became part of larger unit which can
D   all be described as the tank forming part of the admitted plant of the
    filling station. The whole plant is in the nature of a building or
    structure.

        It is seen that the structure must be an entity in itself, although
  not necessarily a building in itself, adopted to the particular purpose it
E serves. In its ordinary sense a structure is something which is
  constructed by way of being built as is a building. But method of
  construction by itself is not conclusive. Structure by itself may not be a
  building but it may be analogous to a building, outhouse, shed, hut or
  a stable. Ship is like a floating building but it is not a structure. A crane
  gantry or a turnable is a structure but is not a building. Weighing
F bridge is a structure. Tilting furnaces mains are in the nature of
  structure. The British Act levies property tax on the tenant and each
  item by itself is exigible to separate rateability. But under the Act the
  incidence of taxation is on the building or land. So the building or its
  accompaniments like house, out-house, garage, stable, shed, hut and
  such other structures must also be an entity by itself although not
G necessarily a building, erected on the land. The adverb 'such' must be
  construed in this perspective. Looking at the tank it would be apparent
  to be a structure, shorn of the feat of engineering mechanism put up to
  have the tank rested on the land. Mechanism or feat of engineering is
  not a conclusive test.

H         The question then is whether it is a land? Indisputably the defini-
           MUNICIPAL CORPN. v. I.0.C [K. RAMASWAMY. J.]               379

tion of 'land' also is of an inclusive definition. Its accompaniments are    A
land which is being built upon or is built upon or covered with water;
benefits to arise out of land; things attached to the earth or permanently
fastened to anything attached to the earth and rights created by legisla-
tive enactment over any street. The question is whether the tank is
attached to the earth? In Stroud's judicial dictionary, fifth Edition,       B
Vol. 1 relied on by the learned counsel for the appellant, the word
'attached' has been defined at p. 217 thus:

            "This word does not always mean physically fastened; it
            may also mean, superincumbent upon. Thus, in citing the
            judgment of Cockburn, CJ., Laing v. Bishopswearmouth, 3
            Q.B.D. 299 that whatever is 'attached' to premises has to        c
            be estimated for the purpose of ascertaining the rating
            value".

     In Rating Valuation Practice by Bean and Lockwood, fifth
Edition, at page 191, it is stated thus:                                     D
            "That physical attachment to the soil was a relevant consi-
            deration but not an essential condition of rateability in the
            case of the plant and machinery referred to in Class 4 of the
            Order as buildings or structures or in the nature thereof.
            The general range of things referred to in Class 4 consi-
            dered of built or constructed things of substantial size; nor-
            mally they would be built or constructed on the heredita-
            ment itself and would normally remain permanently in situ
            but might have a limited degree of motion in use, whether
            in relation to the hereditament or between different parts
            of themselves".
                                                                             F
He relied on the question of movability considered in Cardiff's case
already referred to at p. 192, it is stated thus:

           "A further factor which arose directly out of the Cardiffs
           case was that the Court of Appeal then decided that it was        G
           proper to consider an item of plant "in relation to the
           hereditament" and if there was some degree of per-
           manence in relation thereto (i.e., the thing installed would
           normally remain in situs and only be. removed by a process
           amounting to pulling down or taking to pieces) then that
           item could be regarded as rateable within Class 4".               H
    380         SUPREME COURT REPORTS               [1990] Supp. 3 S.C.R.

    As seen the physical entity test was approved by the House of Lords.
A   In Shell-Max & B.P. Ltd case it was held that:

               "the position might well be different if the metal cylinder
               were so linked with the surrounding compartment as to
               become one physical entity with it-for instance if the
B              space now filled with sand were filled with concrete adher-
               ing to the cylinder. As it is the Cylinder is simply a tank
               which has been placed in an underground structure, and
               surrounded with sand for safety reason. It is not a physical
               entity but a compartment".

          At page 196 the author says that large storage tanks built up on
c   the site would undoubtedly rank as structres. It is also stated at page
    167 that the wide use of oil fuel in many industrial and other properties
    together with the general substantial increase in its use for transport by
    road and rail and for the generation of power and space heating, has
    naturally called for large storage and distribution centres. The largest
D   storage tanks are generally found in coastal areas near to ports or
    where docking facilities are at hand, so that imported oil can be
    unshipped and pumped direct into tankage accommodation. Other
    large depots are to be found close to oil refineries but these later tend
    to be located where there are shipping facilities both for the import of
    crude oil and the export of refined products.
E
          These depois or tanks are formed as they are sometimes called to
    have very large capacities, in some cases containing tanks upto 2, 300
    water tons capacity (about 150 ft. in diameter by 50 ft. height). there
    are invariably numerous smaller tanks for the storage of refined pro-
    ducts awaiting distributing. Such depots frequently cover many acres
F   of land, the tanks being well dispersed as a fire precautionary measure.
    Necessarily these are miles of pipe lines with diameter of from 6 inches
    to 36 inches or greater and furthermore a net work of fire protection
    lines. These are called tanks with modern equipment and exigible to
    rateable value.

G       In the light of the above discussion it is undoubted that if the
  tanks are situated within a Plant they would be integral part of the
  plant and get exempted from assessment under section 154 of the Act
  but there exist no such plant on the demised site. It is also equally
  undoubted that harmonious construction must be adopted consistent
  not only with the principles of taxation to make rateable value but also
H those relating to income-tax, wealth-tax etc. In New Manek Chowk
           MUNICIPAL CORPN. v. I.O.C (K. RAMASWAMY, J.I           381

Spinning and Weaving Mills Co. Ltd. and Ors. v. Municipal Corpora-
tion of the City of Ahmedabad & Ors., [1967] 2 SCR. 679 the Constitu-    A
tion Bench was concerned with levy of the property tax on textile
factories at flat rate under Bombay Provincial Municipal Corporation
Act, 1949 whose constitutional validity was impugned by Art, 14 which
this Court held to be ultra vires. It is not of much assistance to the
respondent.                                                              B

       K.N. Subramanian Chettiar v. M. Chidambaram Servai, [1940]
Mad. 527. is also not of much assistance to the respondent. Therein the
question was whether machinery is a movable property or immovable
property within the meaning of Section 3, Exp!. 1 of the Transfer of
Property Act. It was held in determining whether or not a transfer
relating to an engine is a transaction relating to immovable property    c
regard must be had not merely to the nature of the attachment by
which the engine is fixed on the ground but also to the circumstances in
which it came to be fixed, the title of the person fixing it in immovec
able property and the object of the transaction by which the engine is
transferred or bound. In that case the tenant himself fixed the D
machine. It was held that it was not an immoveable property. Equally
the ratio in Perumal Naicker v. T. Ramaswamy Kone and Anr., [1969]
Mad. 346. also is not of much assistance to the respondent. The ques-
tion there was whether the engine attached to the earth is immovable
property. The engine fixed to the land was attached to recover the
arrears of the loan taken for its purchase. In the context it was held E
that it is a mixed question of fact and law and has to be decided in the
light of particular facts in each case and no particular test could be
formulated but it must be considered in the context in which the ques-
tion had arisen. The literal construction may not yield a proper and
correct result. It must be decided in the light of the specific facts, the
decision on the question should depend upon how the court, looking at F
the facts as a whole, feels on the matter. The degree, the manner and
the strength of attachment of the chattel to the earth or the building,
are the main features to be regarded. Attachment must partake of the
character of the attachment of the trees or shrubs rooted to the earth,
or walls or buildings imbeded in that sense, the further test is whether,
such an attachment is for the permanent beneficial enjoyment of the G
immovable property to which it is attached. In view of the fact that
the engine was fixed for the beneficial enjoyment of the engine
itself and in order to use the engine, it has io be attached to the earth
and the attachment lasts only so long as the engine is used and it would
be detached and shifted to some other place. In that view of the matter
it was held, it is not an immovable property. In Chaturbhuj Morarji v. H
    382         SUPREME COURT REPORTS                 [1990] Supp. 3 S.C.R.

    'Thomas J. Bannett & Ors., [ 1905] 29 !LR, Born. 323. the new shed,
A    the fixture whether part of the lease was in question. It was held that
     the new shed as provided was not attached to the land and, therefore,
     it was not a part of the fixture. In J.H. Sinha v. Govindrao Bhiwa,'i &
     Ors., [1953] 4 AIR Nagpur 224 the machinery belonged to (A) was
     erected on the land belonged to (B). The question was whether the
B    machinery formed part of the land of (B). The Division Bench laid
     down two tests to determine whether it was attached to the land and
     thereby became immovable property, namely, the degree or mode of
     annexation and the object of annexation. Of the two tests the latter is
     the more important, and it is a question of fact to be determined upon
     the particular facts and circumstances of each case. In that case it was
     held that the (A) did not intend to annex the machinery to the land as a
c    permanent attachment. Therefore, it was held that it is not an immov-
     able property. This ratio in these cases is also not of any assistance to
     the respondent.

          The tanks, though, are resting on earth on their own weight
D   without being fixed with nuts and bolts, they have permanently been
    erected without being shifted from place to place. Permanency is the
    test. T~e chattel whether is movable to another place of use in the
    same position or liable to be dismantled and re-erected at the later
    place? If the answer is yes to the former it must be a moveable pro-
    perty and thereby it must be held that it is not attached to the earth. If
E   the answer is yes to the latter it is attached to the earth. For instance a
    shop for sale of merchandise or eatables is a structure. The same could
    be sold by keeping in a push cart which has its mobility from place to
    place. Merely it is stationed at a particular place and business was
    carried on, it cannot be said that push cart is a shop. The fact that no
    nuts and bolts were used to imbed the tank to the earth by itself is not
F   conclusive. Though the witness stated t:iat the tank is capable of being
    shifted, as a fact the tanks were never shifted from the places of erec-
    tion. By scientific process, the tanks stand on their own weight on the
    earth at the place of erection as a permanent structure.

          The petroleum products are being stored through pipes and are
G   taken out by mechanical process. The operational mechanisation also
    though relevant, is not conclusive. The rateable is based on the rent,
    which the building or land is capable to fetch. Due to erection of the
    tanks whether the value of the demised property had appreciated or
    not, is also yet another consideration. Undoubtedly, when the tanks
    are erected and used for commercial purposes, the value of the de-
H   mised property would get appreciated. The annual letting value is
            MUNICIPAL CORPN. v. 1.0.C [K. RAMASWAMY, J.l             383

  capable of increase. However, the rate of increase is a question of fact   A
  but the fact remains that the value of the land gets increased by virtue
  of erection of the storage tanks. Considering from this perspective we
  have no hesitation to hold that the petroleum storage tanks are
· structures or things attached to the land within the definition of
  Sections 3(s) and 3(r) of the Act. Thereby they are exigible to property
                                                                             B
  tax. In this view the appeal is allowed and the judgment of the High
  Court is reversed and that of the Court of Small Causes is affirmed.
  But in the circumstances each party is directed to pay and receive their
  respective costs throughout.

 V.P.R.                                                 Appeal allowed.