FOOD CORPN. OF INDIA vs MUNICIPAL COMMITTEE JALALABAD

The Supreme Court held that the Food Corporation of India is not exempt from state taxation under Article 285 of the Constitution, as its properties do not qualify as 'property of the Union.' The Court affirmed the Punjab and Haryana High Court's decision that the assessment of property tax was valid based on agreed fair rent, and that there was no violation of the Punjab Municipal Act's provisions regarding the fixation of annual value. Consequently, the appeal by the Corporation was dismissed, upholding the High Court's ruling.