INTERNATIONAL RADIATORS Vs. AHMEDABAD MUNICIPAL CORPORATION

JUDGEMENT

(1.) The petitioner-firm seeks to challenge the collection of octroi by respondent No. 1-Municipal Corporation on the brass and copper strips/ foils/sheets imported by the petitioner to its factory from the place outside the city limits and claims refund of the octroi amount overcharged by the respondent- Corporation on such material. According to the petitioner, the items imported by it fall in entry No. 54(A) and not under entry No. 42(A)(i) of the Schedule 'A' to the Octroi Rules.

(2.) The petitioner has its factory in GIDC Estate at Vatwa for manufacturing radiators for motor cars. The said area was included within the Corporation limits with effect from 5-2-1986. According to the petitioner the raw material comprising of copper and brass strips and foils was imported for the purpose of manufacturing radiators for motor cars. This raw material was not imported for being used directly as a spare part or a component in the motor cars, but it was being subjected to various machining processes for bringing about the final product, radiators.

(3.) The respondent-Corporation is empowered to impose taxes under Sec. 127 of the Bombay Provincial Municipal Corporations Act, 1949 (hereinafter referred to as "the Act") and under clause (a) of sub-sec. (2) thereof, it may impose octroi for the purposes and subject to the provisions of the Act. For this purpose, the Corporation may make detailed provisions in the form of Rules under Sec. 149 of the Act. Accordingly, respondent No.1-Corporation has framed rules regarding octroi under Sec. 457(7) read with Sec. 149(1) of the Act. Rule 14 of the Octroi Rules contains the Schedule specifying the items and the rates to be charged on the import of such goods. Items 42(A)(i) and 54(A) which fall in Group 'E' in the said Schedule read as under :