MUNICIPAL BOARD BAREILLY Vs. BHARAT OIL COMPANY

JUDGEMENT

(1.) These two appeals by special leave are filed by the Municipal Board, Bareilly, against the judgment of the Allahabad High Court quashing the Gazette Notification dated August 27, 1969 amending the octroi schedule of the Bareilly Municipality so as to impose octroi on "Mineral oil".

(2.) The respondents Bharat Oil Company and others filed writ petitions under Art. 226 of the Consitution of India challenging the notification on the ground inter alia that the appellant, the Municipal Board Bareilly (hereinafter referred to as 'the Board') had no authority to impose octroi on mineral oil in view of the proviso to Rule 131 of the Octroi Rules contained in the U.P. Municipal Account Code, 1925. This was countered by the appellant stating that the R. 131 was superseded by the 1963 Rules which govern the imposition of octroi by the appellant Board. The single Judge in allowing the Writ Petitions took the view that R. 131 restricted the power of the Board to impose the octroi and the subject-matter of the rule is not covered by the 1963 Rules. The appeals preferred were dismissed by the Division Bench of the High Court agreeing that the bar under R. 131 regarding the imposition of octroi duty on mineral oils continued notwithstanding the 1963 Rules.

(3.) The appellant is a Municipal. Board governed by the provisions of the U.P. Municipalities Act, 1916 (hereinafter referred to as 'the Act). S. 128 of the Act provides for imposition of taxes by a Municipal Board. The relevant part of the said section reads as under: