UNION OF INDIA Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE Railways, represented by the Union of India, through this writ petition has challenged the authority of the Municipal Council, Jodhpur to levy octroi under sec. 104 of the Rajasthan Municipalities Act, on the goods imported within the limits of the Municipal Council. It has also challenged the validity of the notification dated 6. 6. 1981 and 28. 8. 1984. Ancillary to the aforesaid relief, the petitioners claimed the release of the goods seized by the respondent No. 2 for the non-payment of octroi by the petitioner.

(2.) THE goods which are subject matter of the present controversy, are the cement bags imported by the Railway administration for its construction work, which are purchased from the Cement Corporation of India. This is the contention of learned counsel for the petitioners that sec. 107 of the Rajasthan Municipalities Act prohibits levy taxation, enumerated under clause (1) and (2) of sec. 104 of the Act and in clauses (i), (iii), (iv) and (v) of sub-sec. (1) of sec. 105 of the Act, in respect of any and, building, goods vehicles, conveyances, boats or animals, belonging to or vested in the Central Government or the State Government. THE levy of octroi in the goods imported within the municipal limits is authorised under clause (ii) of sec. 104. He also placed reliance on sec. 135 of the Indian Railways Act, 1890.

(3.) IT may also be noticed here that Art. 285 (1) save the property of Union from all taxes imposed by a State or by any other authority within the State, except such that the Parliament by law otherwise provide. Likewise, under Art. 289 (1); the property and income of the State has been exempted from Union taxation. Apart from the aforesaid provisions, it is fundamental principal that nobody can tax ones' own property. Aforesaid principles were enshrined under Arts. 285 and 289; exempting the Union property as well as the State property from taxation, which each one of them is authorised to impose under the Scheme of the Constitution.