1. This appeal raises a neat question of law. The Property Tax Officer, Guna, issued a notice dated 4.4.1972 imposing property tax on the lands and buildings vested in the Krishi Upaj Mandi Samiti, Guna, (hereinafter called "the Samiti"). On receipt of the said notice, the Samiti raised an objection to the levy of the tax on the ground that it was exempt from such levy. The Property Tax Officer, however, rejected the said contention and initiated recovery proceedings against the Samiti. Thereupon, the Samiti filed a writ petition III the High Court of Madhya Pradesh under Article 226 of the Constitution. According to the Samiti, property tax could not be levied by virtue of the exemption granted under Section 6(a)(iii) of the M.P. Nagariya Sthawar Sampatti Kar Adhiniyam, 1964 (Act No. 14 of 1964) (hereinafter called "the 1964 Act"). The provision reads as under:

"6. Exemptions-- The tax shall not be leviable in respect of the following properties, namely:

(a) buildings and lands owned by or vesting in -(i)-(ii) (iii) a local authority;" The expression "local authority" has been defined in Section 2(e) as under:

"Local authority' means a municipal corporation, municipal counci