- (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: "In terms of Art. 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 S. 135 of the Indian Railways Act, but, as indicated earlier, provisions of S. 135 cannot have any overriding effect against the continuance of such laws when authorised by Art. 285(2) of the Constitution. It is not possible for us to hold that Railways Act is an Act made by the Parliament as contemplated under sub-art. (2) of Art. 285 of the Constitution."
(3.) The High Court further observed that : "As S. 135 of the Railways Act is now substituted by the corresponding provisions of the above enactment, it is unnecessary to consider the contention of Mr. Govilkar as to effect of the absence of any Notification. We have already indicated how S. 135 or the corresponding section of the new enactment can have no overriding effect as against the saving of laws contemplated under Art. 285(2) of the Constitution.";