DIGVIJAY CEMENT CO. LTD Vs. RANIP NAGARPALIKA

JUDGEMENT

(1.) Prior to 1-4-1995, the respondent was collecting octroi under an agreement of lumpsum payment. The petitioner's application for renewal of the agreement was rejected and the petition company was informed that the octroi will be collected as per the octroi schedule. The petitioner challenged the action of the respondent by way of filing Special Civil Application which was registered as Special Civil Application No. 2679/95. The said Special Civil Application was resisted by the respondent on the ground that Ranip Nagar Panchayat having been converted into Nagarpalika, it is governed by the provisions of Gujarat Municipalities Act and as such the provisions of Section 179 of the Gujarat Panchayats (Payment of Lumpsum Contribution by Factories in lieu of Taxes) Rules, 1964 would have no application after the agreement having ended on 31-3-1995. It was thus realised that respondent Nagarpalika cannot be compelled to enter into such agreement and liability to pay octroi has arisen after 1-4-1.995. In view of this, the learned Advocate for the petitioner made a submission that the petitioner will make an application to the Nagarpalika under Section 128 of the Gujarat Municipalities Act, which enables the Municipality to direct that a current account may be kept open on behalf of the Municipality on the octroi duty from a person and accordingly the petitioner did -not press the petition at that stage. The petition was accordingly rejected as not pressed.

(2.) .. The petitioner under communication dated 5-7-1995 was called upon to pay octroi duty with respect to items such as clinker fibre, gypsum, fly ash, cement Petitioner's two trucks of clinker fibre were stopped at the octroi outpost and they were asked to pay octroi duty in cash as per the schedule. A dispute arose as to whether clinker falls within entry Nos. 69 and 70 of the schedule or residuary entry No 71. Rule 24 of the Gujarat Gram and Nagar (Taxes & Fees) Rules (hereinafter referred to as Taxes Fees Rules') provides that octroi will be levied by the Panchayat on any of the goods specified in column 1 of schedule 1 on their entry into octroi limits at the octroi naka, but not below the minimum and not exceeding the maximum rates specified in columns 2 and 3 respectively of that schedule. According to the petitioner, the imported items, i.e. clinker and asbestos fibre being minerals fall under entry No. 70. According to the respondent, these items fall under the residuary item at entry No. 71. Entry No. 69 reads as under:

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