UNION OF INDIA Vs. MUNICIPAL COUNCIL BATALA

JUDGEMENT

(1.) Plaintiff Union of India is in second appeal.

(2.) Plaintiff/appellant filed suit against defendant/respondent - Municipal Council, Batala. Plaintiff is having new telephone exchange building in Batala and is paying water and sewerage charges as per consumption. However, defendant demanded service charges amounting to Rs. 1,29,572/- from the plaintiff for the said building on the basis of instructions/circulars dated 10.05.1954 and 27.03.1967 issued by Govt. of India. The plaintiff/Union of India(UOI) by filing the suit challenged the said demand alleging that in view of Article 285 of the Constitution of India, no such tax in the garb of service charges can be levied on the property of the plaintiff/UOI.

(3.) Defendant resisted the suit on various grounds and justified the demand of the impugned amount of service charges. Bar of jurisdiction of civil court under Section 84 of the Punjab Municipal Act, 1911 (in short, 'the Act') was also pleaded.