STATE OF ORISSA Vs. SARAT KUMAR SAHOO

JUDGEMENT

(1.) Under its resolution dated 16-9-1964, Respondent 2 Notified Area municipal Council at Talcher imposed octroi @ 1% on foreign liquor. The imposition of octroi at 1% on foreign liquor was duly approved by the State government. The second respondent by a notification dated 11-6-1965 framed regulations for the time and mode of collecting octroi under Section 388 (3) of the Orissa Municipal Act of 1950. In these regulations, octroi @ 1% on foreign liquor is mentioned in the Schedule to the said regulations.

(2.) By a resolution dated 17-2-1968, the second respondent increased the rate of octroi on foreign liquor from 1% to 10%. Sanction of the State government was obtained for this increase in February 1969. Accordingly, respondent 2 Council demanded from the original first respondent, octroi @ 10% w. e. f. 10-11-1969. This demand is the subject-matter of challenge in the present proceedings. It is not in dispute that from January 1972, under notification issued under Section 131-A of the Orissa Municipal Act, the state Government has revised the rate of octroi and has fixed a uniform rate of octroi at 5% on foreign liquor. Therefore, no claim is being made in the present proceedings for any period after January 1972.

(3.) The High Court has held that since the original rate of octroi was mentioned in the Schedule to the regulation framed under Section 388 (3) , any change in the rate of octroi should have been done by amending the said regulation. Since this was not done, the increase in the rate of octroi by a resolution of the 2nd respondent is not valid.