SHAHDARA (DELHI) SAHARANPUR LIGHT RAILWAYCO. LTD. vs THE MUNICIPAL BOARD, SAHARANPUR

The Supreme Court held that the appellant company, operating a narrow-gauge railway between Shahdara and Saharanpur, qualifies as a 'railway' under the relevant statutes despite being registered as a 'tramway' under the Indian Tramways Act, 1886. The Court found that neither the Municipal Act nor the Terminal Tax Rules provided a specific definition of 'railway' that would exclude the appellant from exemption from terminal tax. The Court emphasized that the common understanding of 'railway' encompasses the appellant's operations, thus entitling it to the exemption under item 2 of Schedule B of the Terminal Tax Rules.