Amendment of : In sub-section (1) of section 217 of the Principal Act, after clause (g), new Section 217 clauses (h) and (i) shall be inserted, namely:-

“(h). Notwithstanding anything contained in this Act, any land or building, which is the property of the Central Government, shall, save in so far as Parliament by law otherwise provides, be exempt from the property tax;

Provided that nothing in this section shall, until Parliament by law otherwise provides, prevent the Municipality from levying any tax on any property of the Central Government to which such property was immediately before the commencement of the Constitution of India liable or treated as liable, so long as the property tax continues to be levied by the Municipality.

Provided further that nothing in this section shall, prevent the municipality to levy service charges on properties of the Central Government as notified vide No.14 (1)-P/52-1, Government of India, Ministry of Finance (Department of Economic Affairs), New Delhi, dated the 10th May 1954.

Explanation I– A property of the Central Government shall not include any property vested in, or belonging to, any statutory body or public sector corporation under the control of the Central Government.

1. (i) Open spaces including parade grounds, which are the properties of the State Government.”