SUPREME MOTORS Vs. CITY MUNICIPAL COUNCIL SHIMOGA

JUDGEMENT

(1.) The petitioner in this writ petition has challenged the Notification dated the 5th of June, 1970 issued by the City Municipal Council, Shimoga under Sec. 97 of the Mysore Municipalities Act, 1964 (hereafter referred to as the Act) in so far as it pertains to imposition of octroi tax on tractors and tractor-parts which item occurs in entry No.4 of Class VIII of the annexure to the aforesaid Notification.

(2.) S.94 of the Act provides that subject to the general or special orders of the Government, a Municipal Council may, after observing the preliminary procedure required by S.95 and with the sanction of the Goverment and at rates not exceeding those specified in Schedules I to VII, levy one or more of the taxes specified in that section. Item No.2 therein pertains to levy or octroi on gooas specified in Schedule II entering the municipal limns for consumption, use or sale therein. After following the prescribed procedure, the impugned Notification dated the 5th ol June, 1970 was issued under S.71, levying octroi duty from the 1st of August, 1970. The schedule to the Notification contains the enumeration ot articles liable to octroi duty which have been grouped into 9 classes. We are concerned in this case with Class VIII dealing with the topic 'metals and articles made of metals', which contains 11 entries. Tractors and tractor-parts come under Entry No.4 which provides for levy of octroi duty of 1 per cent. Entry No 4 in Class VIII of the Notification reads as follows :

(3.) Shri R. B. Brahmavar, learned Counsel for the petitioner, submitted that tractors and tractor-parts, not being items specified in Schedule II to the Act, in respect of which alone the Municipality is competent to levy tax, the Notification dated the 5th of June, 1970 by which tax is sought to be levied on tractors and tractor-parts, is invalid. It is, no doubt, true that tractors and tractor-parts have not been specifically enumerated either in Entry No.4 of Class VIII or in any other entry in eluded in Schedule II to the Act. Though Entry No.43 occurring in Class IX entitles the Government to add to the list conained in Schedule II by means of a Notification, it is not the case of the Municipality that any such Notification was issued specifically including tractors and tractor-parts. On behalf of the Municipality, Shri Kadidal Manjappa submitted that though tractors and tractor-parts have not been specifically mentioned in Entry No.4 of Class VIII, the said articles being articles substantially made of metals, do come within Entry No.4.