Municipal Corporation, Amritsar vs The Sr.Supdt. Of Post Offices,Amritsar ...

The Supreme Court held that the demand for service charges by the Municipal Corporation against the Central Government's Posts and Telegraphs Department is unconstitutional under Article 285(1) of the Constitution, which exempts properties owned by the Central Government from state taxation. The Court determined that the charges constituted a tax rather than a service charge, thus violating the constitutional provision. The appeal by the Municipal Corporation was dismissed, upholding the High Court's decision to set aside the demand notice.