'Railway property, even if commercial, immune from state tax'

OBSERVING that Article 285(1) of the Constitution exempts properties owned by the Union government from paying any taxes to the state government even if they were being used for commercial purposes, the Madurai Bench of the Madras High Court recently allowed an appeal filed by a private company, challenging the demand notice issued by the Madurai corporation in 2018 levying property tax for a commercial complex run by the firm on the premises of the Madurai railway junction.

- EXPRESS NEWS SERVICE @Madurai

Latter, in turn, had constructed a building and sublet the land to the appellant company, Madurai Multi Functional Complex Private Limited (MMFC), for 30 years.