Vaidialingam, J. - (1.) In this appeal, by special leave, the short question, that arises for consideration, is as to whether the appellant railway is entitled to claim exemption from payment of terminal tax, under Item 2 of Sch. B of the rules framed by the Municipal Board of Saharanpur The appellant will be so entitled, if it is held to be a railway, as contended, on behalf of the appellant.
(2.) The High Court of Allahabad, in its order and judgment, under appeal, has held that the appellant is not a railway, but only a tramway encl. as such, not eligible for exemption, from the tax, in question. The short facts, leading to this appeal, may now be briefly set out. The appellant is a limited liability company, and it runs railway, between Sahadara, in Delhi and Saharanpur, in the State of Uttar Pradesh-a distance of about 95 miles or 148.865 kilo meters. The appellant company also operates within the municipal area of Saharanpur. The company was, originally, registered as a tramway, under the Indian Tramway Act, 1886 (Act 11 of 1886) (hereinafter galled the Tramways Act), on November 20, 1905. By Notification No. 5752, dated July 5, 1907, the Governor-General in Council extended to the appellant company, the whole of the Indian Railways Act, 1890 (Act 1 of 1890) (hereinafter called the Railways Act), excepting the provisions of S. 135
(3.) The Municipal Board of Saharanpur, the first respondent herein imposes a terminal tax, under the provisions of S. 128(1) (xiii) of the United Provinces Municipalities Act 1916 as amended by Act I of 1918. Under the said Act, the first respondent has prohibited the importation of goods, within the local limits of the Saharanpur Municipality, by rail, until the tax leviable thereon, or in respect thereof, has been paid, in accordance with the provisions of the Act and the Rules. The Board has also framed rules for the assessment and collection of Terminal Tax, as authorized by the (government Notification No. 856/XI-D.T. 3, dated May l, 1919. The rules have been amended, as per another notification No. 5965 /XI-D.T. 3, dated September 21, 1939.;