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TMI Blog2016 (9) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... atutory authority and complete department has been handed over to the petitioner-Corporation. From the record, it seems that the Corporation is in complete control of the premises and are enjoying the fruits of the property. Taking into consideration the basic object of the tax statute, property is taxed on the enjoyment of the rights of the property and Food Corporation of India is enjoying the property. Merely because technically titles are not clear, the Food Corporation of India cannot be granted exemption of taxation.The contention raised by the petitioner is misconceived and is liable to be rejected. X X X X Extracts X X X X X X X X Extracts X X X X ..... ldings Tax Act, 1964, the Central Government is exempted from property tax by the local authority. Counsel for the petitioner contended that in view of the communication dt.15/1/1977 (Annex.1), which reads as under:- "I am directed to refer to Shri L.M. Chavan's D.O. Letter M. E.9(15)/75- Stg.V (M.P.) dated the 24th November, 1976 on the above subject and to say that the ownership of Central Storage godowns, the physical possession of which has been transferred to FCI in respect of the godowns listed in your above letter, still vest in the President of India. As such, no property taxes are payable for these properties in accordance with Article 285 of the Constitution under which the Central Govt.'s properties are exempt from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Authority claims to the owner of all the properties without making any distinction between those were vested in it at its inception and those which have been acquired and/or constructed later. This distinction sufficiently supports our view that there are two sets of properties and buildings in the occupation of the FCI. Thus the properties, buildings and other assets owned by the Union of India, in the occupation of the FCI, after its constitution, are still the properties of the Union of India. On the other hand, the properties buildings and other assets acquired and constructed by the FCI after its constitution are that properties of the FCI. It does not matter as to how the properties were dealt with by the FCI after it came int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Central Government is deemed to be the owner for the purpose of assessment of tax. Art. 285 is therefore not attracted such a case. The State Government can levy and collect the tax from the petitioner under Section 3(1) of the said Act only so long as he continues as lessee of the Central Government propoerty. We make it clear that the tax can be levied only if the lease for any commercial, industrial or other non-agricultural purpose. Of course, in this case, there is no dispute that the lease is for an industrial purpose." From the above, it would be evident that under the definition of the word 'owner' in Section 2(j) of the Andhra Pradesh Non-agricultural Lands Assessment Act, 1963, lessee under the Central Gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Union of India, which were transferred to FCI after its constitution are exempted from payment of property tax leviable by the Municpal Corporation under the provisions of the Kerala Municipal Coporations Act, 1961 and the Kerala Municipalities Act, 1960. (2) The properties/buildings acquired by the FCI after its constitution are liable to be assessed to property tax by the Municipal Corporation under the aforesaid Act. (3) The Circulars in question (Exts. P2 and P3 in O.P. No. 6588 of 1992) containing the decisions of the Government of India regarding the payment of service charges to the Municipal Corporations in respect of the Union properties have the force of law. (4) The service charges payable under the aforesaid Circulars is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... islation is passed by the Parliament payment to local bodies in respect of Central Government properties constructed after 1st April, 1937, has to be made in accordance with the orders contained in the Ministry's letter No. 14(1)P/52/1 dated 10-5-1954. The letter dated 10- 5-1954 authorizes payment of service charges as compensation payable in quasi-contract. Therefore, the Circulars referred to above cannot be said to be not coming within the purview of Article 73 of the Constitution. 5. We have heard the learned counsel for the petitioner and we have gone through the reply filed by the respondents. 6. It is clear that the property which is constructed is in the ownership of the Government of India but land and the possession is with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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