D. P. Wadhwa, J. - (1.) A common question of law in both these appeals is:if the Board, i.e., Board of Trustees of Visakhapatnam Port trust is exempt from taxation under Art. 285 of the Constitution from levy of property tax by the Visakha-patnam Municipal Corporation, constituted under Visakhapatnam Municipal Corporation Act, 1979 (Civil Appeal No. 1810 of 1988) and also from levy of non-agricultural land tax by the Visakhapatnam Mandal under the Non-Agricultural Lands Assessment Act, 1968. Contention of Mr. Kailash Vasudev, learned counsel appearing for the Board is that the properties are not owned by the Board and the vesting of the properties in the Port Trust is only for the purpose of administering them and they in fact remained the properties owned by the Union of India and thus exempt from taxation under Art. 285 of the Constitution. Under this Article property of the Union of India is exempt from all taxes imposed by the State or by any authority within a State.
(2.) The Board of Visakhapatnam Port Trust is constituted under the Major Port Trust Act, 1963. Constitution of the Board is described in S. 3 of the Act. Under S. 5 Board shall be a body corporate having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold or dispose of property and may by name by which it is constituted, sue or to be sued. Chapter IV of the Act deals with "Property and Contracts." Under Cl. (a) of S. 29 all property, assets and funds and all rights to levy rates vested in the Central Government or, as the case may be, any other authority for the purposes of the port immediately before the appointed day, shall vest in the Board. Under S. 32 of the Act when any immovable property is required for the purposes of the Board, the Central Government may, at the request of the Board, procure the acquisition thereof under the provisions of the Land Acquisition Act, 1894 (1 of 1894), and on payment by the Board of the compensation awarded under that Act and of the charges incurred by the Government in connection with the proceedings, the land shall vest in the Board.
(3.) Our attention was drawn to S. 110 of the Act, which provides for power of the Central Government to supersede the Board. Under sub-section (2) of this section all the properties vested in the Board shall, until the Board is reconstituted, vest in the Central Government. On this an argument was raised that the Board is not the absolute owner of the properties and that only the management of these properties vest with the Board.;