In Brief
South Eastern Coalfields Ltd, a coal mining company, challenged the Municipal Council's levy of terminal tax on goods exported from its mining operations located within municipal limits in a Scheduled Area of Madhya Pradesh. The Supreme Court held that although Part IXA (Municipalities) does not apply to Scheduled Areas, the State Legislature retains power to enact municipal legislation. Since no gubernatorial notification under the Fifth Schedule excluded or conditionally applied the municipal tax statutes to the Scheduled Area, the levy was valid. The appeal was dismissed.
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