AMARSINHJI STATUINARY INDUSTRIES LTD Vs. VANKANER MUNICPALITY

JUDGEMENT

(1.) THE question that has come up for our consideration is whether "tissue paper" imported by the appellant company within the Octroi limits of the Municipality be classified under Item 13 (Perfumed oil and Toilet goods) of Class I of Schedule 11 the Vankaner Municipality Octroi Bye -laws thereby attracting Octroi duty at the rate of 2.5% ad -valorem or under the Residual item No. 12 of Class II to Schedule II, attracting Octroi duty at the rate of 1.5% ad -valorem.

(2.) THE demand for levy of octroi relates to the period prior to December, 1995. Levy of octroi has since been done away with, and hence the general issue of applicability of rate of octroi and assessment thereof now no more survives, but since the Municipality was demanding octroi for the period prior to abolition of octroi, it gave rise to dispute between the petitioner company and the Municipality.

(3.) PETITIONER company initially challenged the demand notice before District Collector under Section 258 of the Gujarat Municipalities Act, 1963 (hereinafter referred to as "the Act"). The Collector by order dated 10th October, 1995 directed petitioner company to prefer an appeal before the Executive Committee of the Municipality. Appeal was preferred, but was also rejected by order dated 22.11.1995. Order was once again challenged before the District Collector under Section 258 of the Gujarat Municipalities Act. Collector had expressed the opinion that the company should approach Judicial Magistrate under Section 138 of the Act. Company had however, preferred to approach this Court seeking a declaration that "tissue paper" brought by the petitioner within the octroi limits of the Municipality for use as raw -material in the production of carbon paper and was not toilet goods within the meaning of Item 13 in Class I of Schedule I to the Municipality Octroi Bye -laws and not chargeable to octroi duty at the rate of 2.5% ad -valorem. Petitioner also sought for a direction on the respondent to refund the differential amount of octroi levied in excess of duty calculated at the rate of 1.5% ad -valorem under residual item in Class II of Schedule I of the Octroi -Bye laws, and for other consequential reliefs.