AMARSINHJI STATIONERY INDUSTRIES LIMITED Vs. VANKANER MUNICIPALITY

JUDGEMENT

(1.) This petition, under Article 226 of the Constitution, has been preferred by Shri Amarsinhji Stationery Industries Limited [hereinafter referred to as Sthe Company ] against the respondent No.1 Vankaner Municipality [hereinafter referred to as Sthe Municipality ] to challenge the action of the Municipality in classifying the raw material namely the Stissue paper imported by the Company for manufacture of carbon paper as 'toilet goods' within the meaning of Item No. 13 of Class I of Schedule-I to the Vankaner Municipality Octroi Bye-laws and in charging octroi at the rate of 2.5%.

(2.) The Company has a manufacturing unit situated at Vankaner. The Company is engaged in manufacturing carbon paper. For manufacture of the carbon paper, the Company imports the tissue paper which is then processed and carbonated to make the carbon paper, an item of stationery. The said tissue paper, when brought within the limits of the Municipality, is chargeable to octroi duty in accordance with the bye-laws of the Municipality. Item No. 13 of Class I of Schedule I to the said Bye-laws relates to perfumed oil and toilet goods. The ad-valorem octroi duty chargeable was 2.5%. Under the Residual Item No. 12 in Class II of the schedules,, the octroi duty chargeable was 1.5%.

(3.) The Company maintained that the tissue paper imported by it was used for manufacturing carbon paper which was not the Stoilet goods within the meaning of the aforesaid Item No.13. According to the Company, the item Stissue paper was not specifically mentioned in any of the items of the said Schedule. The tissue paper imported by the company, therefore, would be liable to octroi duty under the residual item, i.e., at the rate of 1.5%. As against that, the Municipality maintained that the tissue paper imported by the Company was the Stoilet goods as the tissue paper is used as toilet paper. The said tissue paper was, therefore, chargeable to octroi duty at the rate of 2.5% under Item No. 13 of Class I of Schedule I. The claim made by the company was rejected by the administrator of the Municipality by his order dated 5th January, 1995. In view of the contention raised by the Company, the administrator of the Municipality, before considering the said contention and deciding the same, took spot inspection. On visual inspection of the tissue paper imported by the Company, the administrator was of the opinion the same was Stoilet goods and was liable to octroi duty at the rate of 2.5%. The said decision was challenged before the Collector under Section 258 of The Gujarat Municipalities Act, 1963 [hereinafter referred to as Sthe Act ]. The Collector, by his order dated 10th October, 1995, directed that the company may prefer appeal before the Executive Committee of the Municipality and that such appeal shall be decided within one month by the Executive Committee. Pursuant to the said order, the company preferred appeal before the Executive Committee of the Municipality. The said appeal came to be rejected on 22nd November, 1995. The said order was once again challenged before the Collector in appeal preferred under Section 258 of the Act. The Collector, however, was of the opinion that the company shall avail of the remedy of appeal before the concerned Court under Section 138 of the Act. Feeling aggrieved, the Company has preferred the present petition.