CANTONMENT BOARD SECUNDERABAD Vs. G VENKETRAM REDDY

JUDGEMENT

(1.) The question of law that arises for consideration in this appeal is whether a Municipal Corporation established under an Act is, 'any Municipality in the State' within the meaning of Section 60 of the Cantonment Act, 1924 (hereinafter referred as 'the Act').

(2.) It is the answer to this question that would determine the jurisdiction and power of the Cantonment Board of Secunderabad (in brief 'the Board') to levy and collect octroi on substitute of ghee and all kinds of food and drinks brought inside the cantonment for use, consumption and sale. The challenge to the levy was upheld by the learned single Judge as there was no machinery provided for the 'assessment' of octroi. It was held that the provision for appeal against any imposition under Section 84 of the Act did not remove the infirmity as in absence of any provision for assessment the right of appeal was illusory and non-existent. In appeal filed by the Board before the Division Bench under Letters Patent the order of the learned single Judge was maintained as there was no power to levy any octroi. It was held that Section 60 of the Act empowered the Board to levy any tax which under any enactment for the time being in force could be imposed in any Municipality in the State. But since no octroi was levied by any Municipality in the State and it was levied only by the Corporation of Hyderabad which could not be held to be Municipality the Board could not impose any octroi in exercise of its power under Section 60 of the Act.

(3.) Section 60 of the Act reads as under:-