GARWARE NYLONS LIMITED Vs. PIMPRI CHINCHWAD MAHANAGAR PALIKA

JUDGEMENT

(1.) The question that arises for consideration in this appeal is whether the customs duty paid by the appellant could be included for determining valuation for purposes of charging octroi under Rule 17(a) of the Maharashtra Municipalities (Octroi) Rules, 1968 made under sub-section (2) of section 321 read with proviso to sub-section (1) of section 105 of the Maharashtra Municipalities Act, 1965.

(2.) The appellant is a public limited company. It manufactured nylon and polyester yarn. Between September, 1983 and August, 1984 it imported goods liable to octroi. The Corporation authorities claimed that the appellant was liable to include the customs duty paid by it in the valuation of the goods as it was a component of the value of the said goods for the purpose of Rule 17(a). The appeal filed by the appellant before the Civil Judge failed. The order was challenged by way of writ petition under Article 226 of the Constitution. The High Court negatived the claim. Rule 17(a) is extracted below :

(3.) In Shroff case, 1989 Supp. (1) S.C.C. 347 it was held by this Court that countervailing duty being imposed for the purpose of compensating excise duty, it was includible in the expression 'duty'. The Court further held that expression 'incidental' used in the rule expanded its ambit and extended it to such duty that was an incident of importation. It was explained that the words "incidental charges" have a very wide meaning, particularly in the context where duties and taxes are referred to and the idea seems to be to include all items that will be taken into account by an importer as part of his cost.