Different tiers of government govern the same citizens, but each tier has its jurisdiction in specific matters of legislation, taxation, and administration.
The jurisdictions of the respective levels or tiers of government are specified in the constitution. So the existence and authority of each tier of government are constitutionally guaranteed.
The fundamental provisions of the constitution cannot be unilaterally changed by one level of government. Such changes require the consent of both levels of government.
Courts have the power to interpret the constitution and the powers of different levels of government.
The Apex court acts as an umpire if disputes arise between different levels of government in the exercise of their respective powers.
The most important feature of the federal system adopted by the Indian Constitution is the principle that relations between the States and the centre would be based on cooperation. And for this, Independent Judiciary is the prerequisite. Hence, Option 1 is correct.
Sources of revenue for each level of government are specified to ensure its financial autonomy.
The Constitution contains various measures like the security of tenure to judges, fixed service conditions, and so on to make the judiciary independent of the government.
The safeguarded judiciary projects the federal elements of the constitution.