TRANSPEK INDUSTRY LIMITED Vs. EKLABARA GRAM PANCHAYAT

JUDGEMENT

(1.) The petitioner before this Court is Transpek Industry Limited, a manufacturer, having its manufactory within the revenue limits of Ekalbara Gram Panchayat (herein after referred to as Sthe Gram Panchayat ). It is not in dispute that the petitioner was, at the relevant time, liable to pay octroi to the Gram Panchayat for the goods imported by it. This petition arises from the rejection of the offer of lumpsum payment of octroi made by the petitioner.

(2.) It appears that for the year 1996-1997, the petitioner had offered to pay a lumpsum amount of Rs.24,56,000/- by way of octroi. The said offer was not acceptable to the Gram Panchayat. Feeling aggrieved, the Ekalbara Industries' Association preferred appeal before the Collector, which came to be rejected. In revision application before the State Government, the Gram Panchayat maintained that the Gram Panchayat had received offers from the contractors ranging from Rs.25 Lakhs to Rs.60 Lakhs a year and if the offer for lumpsum amount made by the petitioner were accepted, the Gram Panchayat would suffer a financial loss. On such statement made on behalf of the Gram Panchayat, by impugned order dated 21st/28th August 1997, the revision application preferred by the Ekalbara Industries' Association was rejected. Feeling aggrieved, the petitioner has preferred the present petition.

(3.) In the present petition, the petitioner has also challenged constitutionality of Section 202 of the Gujarat Panchayats Act, 1961 and the power of the Gram Panchayat to award contract for collection of octroi. Mr.Gupta has submitted that in view of abolition of octroi, the petitioner does not press the challenge to the constitutionality of the said Section 202 or the authority of the Gram Panchayat to award contract for collection of octroi.