1991 (9) TMI 371

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... challenging notices of demand issued by the Municipal Council, Purna, respondent No. 1 herein, claiming tax to the tune of Rs. 28.400/- by way of "Service charges" due for the period 1954 to 1960. The claim of the Union of India primarily was based under Article 285 of the Constitution read with Section 135 of the Indian Railways Act, 1890. The High Court interplaying the two provisions negatived the claim of the appellant by holding as follows: In terms of Article 285(2) these properties will continue to be liable to such taxes 'until Parliament by law otherwise provides. Mr. Govilkar has not drawn our attention to any specific law made by the Parliament providing otherwise. He, however, relied on Section 135 of the Indian Ra....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....railways administrations in aid of the funds of local authorities, namely:- (1) A railway administration shall not be liable to pay any tax in aid of the funds of any local authority unless the (Central Government) has, by notification in the official gazette, declared the railway administration to be liable to pay the tax. (2) While a notification of the (Central Government), under Clause (1) of this Section is in force, the railway administration shall be liable to pay to the local authority either the tax mentioned in the notification or in lieu thereof such sum, if any as an officer appointed in this behalf by the (Central Government ) may having regard to all the circumstances of the case, from time to time determine ....