228 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
260 THE GAZETTE OF INDIA EXTRAORDINARY, FEB. 26,1948
operation of a Union railway, shall be less by the amount of the tax than the price charged to other consumers of a substantial quantity of electricity.
Exemption 266. Subject as hereinafter provided, the Govern- of the ment of a State shall not be liable to Union taxation 5 Governments in respect of lands or buildings situate within the of States in territory of India, or income accruing, arising or respect of received within such territory: Union taxa- tion
Provided that—
(a) where a trade or business of any kind is 10
carried on by or on behalf of the Govern-
ment of a State, nothing in this article
shall exempt that Government from any
Union tax or the levy of a sum in lieu of
15 such tax in respect of that trade or
business or any operations connected
therewith, or any income arising in con-
nection therewith, or any property
occupied for the purposes thereof;
(b) nothing in this article shall exempt the 20
Ruler of any State for the time being
specified in Part III of the First Schedule
from any Union tax in respect of lands,
buildings or income being his personal
26 property or personal income.
Explanation.—For the purposes of this article, any operations incidental to the ordinary functions of the Government of a State, such as, the sale of the forest produce of any forest under the control of the Government of a State or of any article produced in 30 any jail within a State, shall not be deemed to be a trade or business carried on by or on behalf of the Government of the State.
Adjustments 267. Where under the provisions of this Consti- in respect tution the expenses of any court or Commission, or 35 of certain pensions payable to or in respect of a person who has expenses and served before the commencement of this Constitution pensions. under the Crown in India, are charged on the revenues of India or the revenues of a State for the time being specified in Part I of the First Schedule, 40 then if—