MAHAPALIKA OF CITY OF AGRA vs AGRA BRICKKILN OWNERS' ASSOCIATION & ORS.

The Supreme Court held that the maximum tax leviable under Article 276 of the Constitution of India is Rs. 250, as opposed to Rs. 50 under Section 142A(2) of the Government of India Act, 1935, for the period after January 26, 1950, until the U.P. Nagar Mahapalika Adhiniyam, 1959, came into force. The Court clarified that the proviso to Section 172 of the 1959 Act preserves the class of tax and not merely the quantum, allowing for a tax rate up to Rs. 250. The High Court's interpretation was deemed erroneous, and the appeal was allowed in part, affirming the higher tax limit.