TaxTMI 
TaxTMI 
1999 (1) TMI 535
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....High Court of Madhya Pradesh. The writ petition was summarily dismissed, relying upon the judgment of this Court in the case of the appellant itself Western Coalfields Ltd. v. Special Area Development Authority. This appeal against the order of summary dismissal is filed by special leave. 2. The first respondent sought to tax the property of the Colliery in exercise of the power contained in Section 127-A of the M.P. Municipalities Act, 1961. Section 127 A contains Sub-section (2) which states that property tax shall not be leviable on "buildings and lands owned by or vesting in (i) the Union Government. 3. Sections 3, 5 and 11 of the Coal Mines (Nationalisation) Act, 1973, so far as they are relevant to this appeal, read thus: 4. ....
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.... the Mineral Concession Rules; and all the rights and liabilities of the Central Government in relation to such coal mine shall, on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of the government company. (3) The provisions of Sub-section (2) of Section 4 shall apply to a lease which vests in a government company as they apply to a lease vested in the Central Government and references therein to the 'Central Government' shall be construed as reference to the government company. 11. Management, etc. of coal mines-(1) The general superintendence, direction, control and management of the affairs and business of a coal mine, the right, title and interest of an own....
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....tax in respect of property owned by a State. Mr. Raval also drew our attention to the judgment of this Court in Air India Statutory Corporation. v. United Labour Union JT 1996 (11) SC 109 where, in the context of deciding what was an instrumentality of the State for the purposes of Article 12, it was said: (7) Though the instrumentality, agency or person conducts commercial activities according to business principles and are separately accountable under their appropriate bye laws or memorandum of association, they become the arm of the Government. Mr. Raval's contention is that the property in the Colliery at Birsinghpur vests in the appellant-Company on behalf of the Union and, therefore, by reason of Section 127A (2) of th....
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....e Union, new "vest in the government company" in whose favour the direction under Section 5 had been made. In other words, by reason of Section 5 and 11, the right, title and interest of the erstwhile owner of the Birsinghpur Colliery in the property thereof as also in the superintendence, control, management and business thereof which had vested in the Union, now vested in the appellant consequent upon the direction in that behalf issued by the Union under Section 5. The appellant, as a company, is a legal entity. It holds its property in its own right and for itself. It is, therefore, that we cannot accept the submission of Mr. Raval that the property of the Birsinghpur Colliery vests in the appellant-Company on behalf of the Union' a....