STATE OF MAHARASHTRA Vs. NEW DELHI MUNICIPAL COMMITTEE

JUDGEMENT

(1.) This petition under Articles 226 and 227 of the Constitution of India is directed against the notices dated 4th January 1972, 8th January 1973 and resolutions dated 18th March 1972 and 1st March 1973 leving property tax for the assessment year 1972-1973 in respect of building owned by the State of Maharashtra.

(2.) The petitioner has challenged the notices and the resolutions mainly on the ground that the property of the State Government was exempt under Article 289(1) of the Constitution of India from house-tax leviable under the Municipal Act, 1911 as applicable to Union Territory of Delhi.

(3.) The point in question is covered by the Division Bench judgment of this Court in New Delhi Municipal Committee v. The State of Andhra Pradesh & Others. 1975 M.C.C. 616 wherein relying on the judgment of the Supreme Court in Re: The Bill to Amend S.20 of the Sea Customs Act, 1878 and S.3 of the Central Excise & Salt Act, 1944. 1964(3) SCR 787 it has been held that the property tax levied by the committee under the Punjab Municipal Act as applicable to the Union Territory of Delhi would be a part of Union Taxation and the property of the State Government would, therefore, be exempt from such taxation by virtue of the provisions of Article 289(1) of the Constitution of India.