UNION OF INDIA vs THE LONAVLA BOROUGH MUNICIPALITY OF LONAVLA, DISTRICT POON

The Supreme Court examined the validity of a consolidated tax levied by the respondent Municipality on the G.I.P. Railway under the Bombay District Municipal Act, 1901, and the Bombay Municipal Boroughs Act, 1925. It held that the tax was valid as per the amended rules promulgated on 6th October 1931, which removed the exemption for Government property. The Court affirmed that the railway was liable to pay the consolidated tax assessed on its lands and buildings, thus upholding the Municipality's authority to levy such taxes under Section 73 of the 1925 Act.