UNION OF INDIA Vs. PURNA MUNICIPAL COUNCIL

JUDGEMENT

(1.) - This appeal by special leave is directed against the judgment and order of the Bombay High Court passed in Special Civil Application No. 193i of 1971 decided on December 5, 1977.

(2.) The Union of India, the appellant herein, approached the High Court under Art.226 of the Constitution 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 Art. 285 of the Constitution read with S. 135 of the Indian Railways Act, 1890. The High Court interplaying the two provisions negatived the claim of the appellant by holding as follows:

(3.) The High Court further observed that :