MUNICIPAL CORPORATION, AMRITSAR vs SENIOR SUPDT., POST OFFICES

The Supreme Court held that the demand for service charges by the Municipal Corporation against the Central Government's Posts and Telegraphs Department is not a tax but a legitimate service charge for services rendered, thus not violating Article 285(1) of the Constitution. The Court clarified that properties owned by the Central Government are not exempt from service charges, as these charges are distinct from taxes. The appeal by the Municipal Corporation was allowed, overturning the High Court's decision that had set aside the demand notice.