Railway tax exemption under a non obstante clause applies only to assets within the statutory definition of railway.

Section 184 of the Railways Act, 1989, which contains a non obstante clause, prevails over inconsistent municipal taxation provisions and exempts a railway administration from local tax unless the Central Government issues a liability notification. The Delhi High Court held that the petitioner's metro system falls within the statutory definition of railway, so it qualifies as a railway administration for Section 184 purposes. However, the exemption is confined to assets and properties that themselves fall within the exhaustive definition of railway in Section 2(31); non-railway assets remain taxable and require fresh asset-wise determination.

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Issues: (i) Whether Section 184 of the Railways Act, 1989 exempted the petitioner from municipal taxation notwithstanding the Delhi Municipal Corporation Act, 1957. (ii) Whether the petitioner qualified as a railway administration and its metro operations fell within the definition of railway under the Railways Act, 1989. (iii) Whether the exemption extended to all assets and properties of the petitioner or only to those falling within the statutory definition of railway.

Issue (i): Whether Section 184 of the Railways Act, 1989 exempted the petitioner from municipal taxation notwithstanding the Delhi Municipal Corporation Act, 1957.

Analysis: Section 184 contains a non obstante clause and states that a railway administration is not liable to pay tax to a local authority unless the Central Government issues a notification making it liable. No such notification was shown to exist. The provision therefore prevails over inconsistent municipal taxation provisions.

Conclusion: The exemption under Section 184 overrides the municipal levy and operates in favour of the petitioner.

Issue (ii): Whether the petitioner qualified as a railway administration and its metro operations fell within the definition of railway under the Railways Act, 1989.

Analysis: The definition of railway administration in Section 2(32) identifies the administrator for government and non-government railways, while Section 2(31) gives an inclusive but exhaustive definition of railway. The Court held that the petitioner's metro system is a railway within that definition. Definitions in the later metro enactments were held not to control the meaning of the 1989 Act, because the earlier and later enactments operate on their own definitional schemes and the later legislation does not displace the earlier one for this purpose.

Conclusion: The petitioner was held to be covered by the expression railway administration for the purposes of Section 184.

Issue (iii): Whether the exemption extended to all assets and properties of the petitioner or only to those falling within the statutory definition of railway.

Analysis: The definition of railway in Section 2(31) was treated as exhaustive, so the exemption applies only to assets and properties that fall within that definition. Properties or transactions outside clauses (a) to (f) of Section 2(31) are not protected and may be taxed by the local authority. The matter therefore required factual scrutiny asset-wise, and was remanded to that limited extent.

Conclusion: The exemption was confined to railway assets and properties; non-railway assets were left open for fresh determination by the Assessing Authority.

Final Conclusion: The petitioner was entitled to municipal tax exemption under Section 184 of the Railways Act, 1989 only in respect of assets and properties constituting railway within Section 2(31), and the assessment was remanded for identification and taxation of any non-railway assets; the writ petition succeeded only to that extent.

Ratio Decidendi: A statutory exemption granted to a railway administration by a provision containing a non obstante clause applies according to the enacted definition of railway, and where that definition is exhaustive, the exemption cannot be extended beyond the assets and properties specifically covered by it.

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