REX Vs. UTTAM CHAND

JUDGEMENT

(1.) On 27th August 1948, Uttam Chand imported within the limits of the Municipal Board of Lalitpur one bag of corks used as stoppers for bottles or phials, without payment of the octroi duty assessed thereon by the Octroi Superintendent of the Board. The octroi duty was assessed under item 1, class IV, of the schedule of rates for such duty prepared by the Board, under Section 128, Sub-section (1), Clause (viii), United Provinces Municipalities Act (II [2] of 1916), Class iv of the schedule relates to "articles used for building and furnishing purposes" and item 1 in this class is "timber and wood and articles made thereof." Appended to the schedule is a list of exemptions specifying the goods exempted from payment of octroi duty. The list opens with item 1, which reads thus: "Packing materials are exempted from octroi duty."

(2.) Accordingly, Uttam Chand was prosecuted for committing a breach of Rules 144 and 146, Municipal Account Code, for failure to pay the octroi duty assessed by the Octroi Superintendent, punishable under Rule 231 of the same Code.

(3.) According to the case for the prosecution, corks were assessable to octroi duty under item 1 of class iv of the schedule while Uttam Chand alleged that corks were not articles used for building and furnishing purposes, even though they might fall within item 1 relating to "timber and wood and articles made thereof," and being packing materials the corks were exempt from octroi duty. The Judicial Magistrate who tried the case, held that the corks were assessable to octroi duty under item 1 of class IV of the schedule and that Uttam Chand had committed a breach of the rules, inasmuch as he did not pay the octroi duty assessed thereon by the Octroi Superintendent. Accordingly, he convicted and sentenced Uttam Chand to pay a fine of Rs. 25 or, in default of payment of fine, to undergo one day's simple imprisonment.