MUNICIPAL COMMISSIONER THANE Vs. HANDR JOHNSON INDIA LIMITED

JUDGEMENT

(1.) The question to be determined in this appeal has boiled down to a very narrow compass - whether the "clay" imported by the respondents for manufacturing ceramic tiles can be brought within the ambit of the item described as "earth of any other kind", in Entry No. 47 of Class IV of Schedule I of the Maharashtra Municipalities (Octroi) Rules, 1968 (for short "the Rules"). Respondents contended that the clay imported by them falls within the said category which contention was found favour with the High Court of Bombay in the writ petition filed by the respondents. The said decision is now being challenged in this appeal.

(2.) The question came up through the facts of this case which are summarised as follows: Respondents are manufacturing ceramic tiles in their factory situated within the limits of Thane Municipal Corporation (Maharashtra State). The main ingredient used for the said product is clay which respondents get down from Rajasthan and Andhra Pradesh. Under Section 105 of the Maharashtra Municipalities Act, 1965, the municipal corporation is empowered to levy octroi duty on the goods brought into the territorial limits of the municipal corporation is empowered to levy octroi duty on the goods brought into the territorial limits of the municipal corporation at a rate not exceeding the maximum limit prescribed by the Rules. Goods are classified in Schedule I of the Rules for fixing different rates of octroi duty. In this case, we are only concerned with the goods classified in Entries 45 and 47 of the Schedule.

(3.) Entry No. 45 thereof consists of coal tar, asphalt, bitumen, flooring stone, manganese, emery stone or powder, chalk powder, stone chips, stone powder, Agra stone, stone for building clinker and coal ash. In respect of those goods Thane Municipal Corporation decided to levy the maximum octroi duty of 4% on the value prescribed by the Rules. Entry 47 consists of yellow earth and earth of any other kind, sand, metal rubble, murum and gravel, for which the Corporation is empowered to levy a maximum of Rs. 2/- per metric tone. However, as for those goods, Thane Municipal Corporation has resolved to levy octroi duty only at the rate of Re. 1/- per metric tone.