STATE OF MAHARASHTRA Vs. NARENDRA OIL REFINERIES

JUDGEMENT

(1.) This appeal arises out of an order made by the High Court on a petition filed before it under Article 226 of the Constitution wherein the respondents sought for the benefit of octroi incentive resulting in reimbursement of the amount of the octroi paid by them, for a period of 5 years commencing from 15-8-1983 till 14-8-1988 as provided in para 9 of the 1979 Scheme and sought for a direction to pay the amount in certain sums towards the octroi paid by them during that period. The High Court on examination of the Scheme allowed the writ petition and directed the appellant to work out the benefit of octroi incentive to be granted to the petitioners in the light of the interpretation placed by it of Clause 9.2.

(2.) Learned counsel for the appellants submits that the Scheme makes it very clear that when a new unit becomes eligible for incentive, it would be from the date when the first item is brought into local authority's jurisdiction. Earlier in the present case, the industry was located in an area coming under village panchayat where no octroi was leviable and subsequently from 15-8-1983 it came under the jurisdiction of Amravati Municipal Council and, therefore, that date should not be taken into consideration but the date of the import of the first item for use of the industry in the local area is to be taken into consideration. The High Court while considering this argument noticed that the levy would be attracted only on the industry coming within the Municipal area and would be subject to the levy of octroi and so benefit of incentive would arise. If the levy itself is not attracted, question of exemption of incentive also would not arise and on that basis the High Court gave the relief, as stated earlier.

(3.) We think the view taken by the High Court to be reasonable interpretation of the clauses with which we are concerned.