The Railways (Local Authorities’ Taxation) Act, 1941
1ACT NO. XXV OF 1941
[26th November, 1941]
An Act to regulate the extent to which railway property shall be liable to taxation imposed by an authority within a Province.
WHEREAS it is expedient to regulate the extent to which property vested in 2[Government] for the purposes of the Central Government, being property of a railway, shall be liable to taxation imposed by an authority within a Province;
It is hereby enacted as follows:---
1. Short title and extent.__ (1) This Act may be called the Railways (Local Authorities Taxation) Act, 1941.
3[(2) It extends to the whole of
2. Definitions. In this Act,---
(a) “local authority” means a local authority as defined in the General Clauses Act, 1897 (X of 1897), and includes any authority legally entitled to or entrusted with the control or management of any fund for the maintenance of watchmen or for the conservancy, of a river;
(b) “railway administration” has the meaning assigned to the expression in clause (6) of section 3 of the Railways Act, 1890 (IX of 1890).
1For Statement of Objects and Reasons, see Gazette of India, 1941, Pt. V, p. 130; and for Report of Select Committee, see ibid., p. 194.
The Act has been applied to Balochistan, see Notification No. 20‑F dated the 5th February, 1942, Gazette of India, 1942, Pt. I, p. 264.
It has been extended to the Leased Areas of Balochistan by the Leased Areas (Laws) Order, 1950 (G. G. O. 3 of 1950).
2Subs. by A. O., 1961, Art. 2, for “His Majesty” (with effect from the 23rd March, 1956).
3Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960), s. 3 and 2nd Sch. (with effect from the 14th October, 1955), for the original sub‑section (2), as amended by A. O., 1949.
3. Liability of railways to taxation by local authorities.__ (1) In respect of property vested in 1* * * the 2[Federal Government], being property of a railway, a railway administration shall be liable to pay any tax in aid of the funds of any local authority, if the 3[Federal Government], by notification in the official Gazette, declares it to be so liable.
(2) While a notification under sub‑section (1) is in force, the railway administration shall be liable to pay to the local authority either the tax mentioned in the notification or in lieu thereof such sum, if any, as a person appointed in this behalf by the 3[Federal Government] may, having regard to the services rendered to the railway and all the relevant circumstances of the case, from time to time determine to be fair and reasonable. The person so appointed shall be a person who is or has been a Judge of a High Court or a District Judge.
4. Modification of existing liability to taxation.__ The 3[Federal Government] may, by notification in the official Gazette, revoke or vary any notification issued under clause (1) of section 135 of the Railways Act, 1890 (IX of 1890); and where a notification is so revoked any liability arising out of the notification to pay any tax to any local authority shall cease, and where a notification is so varied the liability arising out of the notification shall be varied accordingly.
5. Saving. Nothing in this Act shall be construed as debarring any railway administration administering a railway from entering into a contract with any local authority for the supply of water or light or for the scavenging of railway premises, or for any other service which the local authority may be rendering or be prepared to render within any part of the local area under its control.
1The original words "His Majesty for the purposes of" omitted by A. O., 1961, Art. 2 and Sch. (with effect from the 23rd March, 1956).
2Subs. by F. A. O., 1975, Art. 2 and Table, for “Provincial Government” which was previously subs. by A. O., 1964, Art. 2 and Sch., for “Central Government”.
3Subs. by F.A.O., 1975, Art.2 and Table, for “Provincial Government”, which was previously amended by A.O., 1964, Art.2 and Sch., for “Central Government”.
