MAHA LUXMI CHEMICALS Vs. NAGAR MAHAPALIKA BARELLY

JUDGEMENT

(1.) THE question of law involved in this writ petition is whether sulphur sludge is sulphur and taxable under item no. 1 Clause V of Nagar Mahapalika, Bareilly Octroi Schedule.

(2.) M/s. Maha Luxmi Chemicals Industrial Estate, Clutternuck Ganj, Bareilly, is engaged in reclamation of sulphur from sulphur sludge which is a waste product of fertilizer and chemical plants and looks as black clay almost like coal dust. According to the petitioner, sulphur sludge contains roughly 10 to 12 percent of sulphur. According to Octroi Rules of the Nagar Mahapalika, Bareilly, Octroi is payable on different commodities in accordance with the schedule to the Rules. Sulphur and chemicals are dealt with under Clause V item no. 1 relating to chemicals, medicines paints, colours, perfumes and general merchandise. According to the petitioner the sulphur sludge can, by no stretch of reasoning, be said to be covered by the Entry regarding all kinds of chemicals occurring at item no. 1 Clause V of Nagar Mahapalika Bareilly Octroi Rules. The opposite party no. 1 is charging octroi illegally at the rate of Rs. 5/- per quintal, treating it as covered by item no. 1 of Clause V of Nagar Mahapalika Bareilly Octroi Schedule. According to the opposite party sulphur sludge is covered by item no. 1 of Clause IV of the schedule. According to the Nagar Mahapalika, Bareilly, sulphur sludge is a chemical and is not a source of extracting chemical and hence it is chargeable. Sulphur sludge falls in item no. 1 of Clause V of the schedule of Nagar Mahapalika Bareilly Octroi Rules.,

(3.) IN order to appreciate the controversy in the present case, it is necessary to see as to what sulphur sludge is. According to the petitioner sulphur sludge is a waste product of fertilizer and chemical plants and contains about 10 to 12 percent of sulphur. Sulphur is a mineral.