TMI Blog2008 (12) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... that:- The Tribunal was justified in negativing the plea raised by the petitioner that the staff of the Madras Corporation are also "Government servants" and as such they are entitled to the exemption granted by the Government to the servants of the Union as well as State. Accordingly, substantial question of law is answered against the petitioner. - 1221 of 2006 - - - Dated:- 23-12-2008 - PRABHA SRIDEVAN AND SASIDHARAN K.K. , JJ. ORDER:- The order of the court was made by K.K. SASIDHARAN J. This tax case involves the following substantial question of law: Whether the Sales Tax Appellate Tribunal is justified in holding that the Notification No. II(1)/CTRE/206/77, dated September 7, 1977 issued under section 17 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated August 22, 1996 was taken up by the assessee before the appellate authority. The petitioner contended before the authority that they were not liable to pay sales tax on sale of food and drinks in view of the Government notification exempting sale of food and drinks in canteen run by the Government servants. However the said argument was not accepted by the Appellate Assistant Commissioner on the ground that there was no specific order of exemption issued by the Government exempting from tax liability in respect of the business carried on by the assessee. Accordingly the appeal was dismissed. The matter was taken up before the Tamil Nadu Sales Tax Appellate Tribunal and the assessee contended that they are entitled for exemption of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel, the Government have got persuasive control over the Corporation and as such the staff of the Madras Corporation would come under the definition of Government servants and in such circumstances the assessing officer was not justified in rejecting the claim of exemption. The learned Special Government Pleader appearing on behalf of the respondents submitted that the servants of the Madras Corporation were not governed by the service rules framed by the Government and they are governed by separate service regulations and though Government have got certain control over the affairs of the Corporation it would not make the Corporation part of the Government so as to enable the Corporation staff to get the benefit of all the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The councillors are elected by the electorates of the respective wards and the Mayor is elected directly by the electorates. The Commissioner is only an executive head of the Corporation and though the Commissioner is appointed by the Government, it cannot be said that the servants of the Corporation are also Government servants. While functioning as the Commissioner of the Corporation, the concerned officer of the State civil service is entitled to the very same remuneration which he was getting from the Government. On the basis of the such provisions in the Madras City Municipal Corporation Act, it cannot be said that the servants of the Corporation are all Government servants. The honourable Supreme Court in Srikant v. Vasantrao [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpreting the words 'State' or 'State Government' occurring in other parts of the Constitution. While the term State may include a State Government as also statutory or other authorities for the purposes of Part III (or Part IV) of the Constitution, the term 'State Government' in its ordinary sense does not encompass in its fold either a local and statutory authority. . . There are certain provisions in the Madras City Municipal Corporation Act, 1919 which include the servants of the Municipal Corporation also under the definition of Government servants . Such provisions are made only for a particular purpose and beyond the same, it cannot be said that they have to be treated as Government servants for all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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