CHAMUNDESWARI COFFEE WORKS Vs. TOWN MUNICIPAL COUNCIL HOSANAGAR

JUDGEMENT

(1.) In Hosanagar town of Shimoga District, the petitioner which is a registered partnership firm, is principally carrying on the business of dealing in coffee seeds and coffee powder. Coffee seeds are bought by the petitioner from whole-sale dealers in different places and are imported into Hosanagar town. The petitioner has asserted that the coffee industry in particular the supply of coffee seeds in the Country, is regulated by the Coffee Act of 1942 (Act 7 of 1942) (hereinafter referred to as ' the Central Act) and the Rules framed thereunder and that what is supplied by the wholesale dealers who in turn purchase in the coffee pool sales conducted by the Coffee Board constituted under the Central Act, is only ' clean coffee'. The case of the petitioner is that the coffee seeds that are purchased from wholesale dealers and imported by it are clean coffee seeds and are therefore leviable to octroi under Entry 13 of Class-Article of Food and Drink-of the Octroi Schedule appended to the Notification No. MUN. CR. 13/72-73 dated 28th April, 1972 published in the Karnataka Gazette dated 15"-6-1972 (here inafterreferred to as ' the Octroi Schedule') and not under Entry No. 23 as claimed by the Respondent. The petitioner has also asserted that some time prior to July, 1973 clean coffee imported by it was rightly assessed to ,octroi under Entry No. 13. But the new Chief Officer who has taken charge some time in 1973 has illegally sought to levy octroi on clean coffee under Entry No. 23 of the Octroi Schedule for which reason the petitioner has moved this Court under Article 226 of the Constitution for appropriate reliefs.

(2.) In its return, the respondent has resisted the claim of the petitioner and has justified the action taken to levy octroi under, entry No. 23 of the Octroi Schedule. In the return the respondent does not dispute the assertion of the petitioner that it purchases coffee seeds from wholesale dealers and imports them into the territorial limits of the Hosanagar town Municipality. But it still contends that the levy under Entry No. 23 of the Octroi Schedule is justified.

(3.) Shri Kadidal Manjappa, learned counsel for the petitioner, strenuously contended that what is sold to the wholesalers by the coffee Board from whom the petitioner, pur chases and imports into the terrtitorial limits of Hosanagar Town Municipality is clean coffee seeds and therefore they can be subject to octroi only under Entry No, 13 and not under Entry No. 23 of the Octroi Schedule. Shri Mohandas Hegde, learned counsel for the respondent, refuted the contention of Shri Kadidal Manjappa and supported the action of the respondent to levy octroi under Entry No. 23 of the Octrpi Schedule.