MAFATLAL INDUSTRIES LIMITED Vs. NADIAD NAGAR PALIKA

JUDGEMENT

(1.) This appeal by special leave is against the judgment of the Gujarat High Court holding that the appellant is liable to pay octroi duty under S. 99 of Gujarat Municipal Act, 1963 (for short the Act).

(2.) The appellant, a textile manufacturing company, brought cloth pieces of 100 meters length within the octroi limits of Nadiad town. To meet the requirement of relevant excise rules and also demands in the market, cloth pieces were cut into smaller pieces of different sizes and thereafter sent outside the octroi limits of the said town.

(3.) On the above facts, the High Court held that in the process of cutting, the cloth pieces are used as well as consumed, therefore, the cloth pieces brought into the octroi limits for this purpose, would attract octroi duty.