NAGAR MAHAPALIKA BAREILLY Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) This petition under Art. 136 of the Constitution for leave to appeal is against the decision of the High Court of Allahabad dated 2nd of November, 1987. The question involved here is regarding the levy and realisation of octroi duty by the Nagar Mahapalika, Bareilly in Uttar Pradesh. Kasturi Lal Satantra Kumar and his partner, respondents herein, by a bid in the auction held for retail vend of country liquor for excise year 1987-88 ending on March 31, 1988 obtained the necessary licence under the U.P. Excise Act for a group of shops known as Faridpur Group in the district of Bareilly. The auction was held in the month of March, 1987. One of the conditions of the auction which also formed part of the licence, was that the licensee would obtain supply of country liquor for retail vend from the bonded warehouse in respect of Bareilly district situated within the limits of Nagar Mahapalika, Bareilly.

(2.) Indubitably the said Kasturi, petitioner in the original writ petition brought into the territory country spirit, the question was at what rate the municipality was to impose octroi duty on the rectified spirit which was brought.

(3.) It appears that there was a notification dated 30th of April, 1986, published in. the U.P. Gazette in exercise of powers under S. 172(2)(b) of the U.P. Nagar Mahapalika Adhiniyam, 1959. In the Schedule forming part of that notification are mentioned the articles on which the octroi duty is payable and the rates thereof. The articles have' been grouped together in different classes from Class I to Class X. Class III which bears the heading "Articles of lighting, Fuel, washing and Lubricants" contains the following entry at item No. 7: