MUNICIPAL BOARD Vs. JAI ENGINEERING WORKS LTD

JUDGEMENT

(1.) This is a petition on behalf of the Municipal Board, Allahabad under Article 226 of the Constitution praying that a writ of certiorari be issued quashing the order of the Additional Commissioner dated the 20th of August 1955 and that the opposite party No. 1 Jay Engineering Works Ltd., be directed not to apply for refund in enforcement of the above order.

(2.) The facts mentioned in the affidavit are that Messrs. Jay Engineering Works Ltd., opposite party No. 1, carry on the business of sale of Usha Sewing Machine. In the course of their business they import sewing machines within the octroi limit of Allahabad Municipality. In June 1954 the opposite party No. 1 received 28 sewing machines and the dealers from whom the opposity party No. 1 had purchased the machines sent the railway receipt and the invoice. On the 17 of June 1954 the opposite party No. 1 brought the railway receipt and the invoice to the Head Octroi Office, Allahabad, under Rule 159 of the Municipal Account Code for the stamping of the railway receipt and for payment of the octori payable thereon. The value of the goods declared by them has been Rs. 3,600/- and thereupon an octroi of Rs. 112/8/- was assessed and received from them, and according to Rule 159 the railway receipt and the invoice were stamped with the Municipal Stamp and returned to the opposite party No. 1 to enable them to obtain the goods from the railway. The octroi as determined by the Octroi Superintendent was paid by the opposite party No. 1 at the Central Barrier. An appeal was filed by the opposite party No. 1 from the order dated the 17th of June 1954 under which the octroi had been assessed to the Additional Commissioner. The appeal was allowed by the Additional Commissioner and it was held by him that the Board was not competent to impose any octroi duty on the import of sewing machines. The octroi realised by the Board was ordered to be refunded. An objection had also been taken before the Additional Commissioner that no appeal lay to him.

(3.) Notices were issued to the opposite parties and a counter-affidavit has been filed on their behalf. In the counter-affidavit it was stated that Messrs. Jay Engineering Works Ltd. manufacture Usha Sewing Machines and fans, etc., at Calcutta where its Head Office is also located. Various selling branches have been opened at different places and there is a selling branch of the Company at Hewett Road, Allahabad, for over 12 years. The Company sends sewing machines and other manufactured goods to the selling branches where the paid servants of the Company sell the sewing machines and other goods. The Allahabad Branch of the Company also runs a school where the training in sewing is imparted and the machines sent to Allahabad Branch are utilized for this purpose as well. It is admitted by the opposite party that in June 1954 twenty-eight sewing machines had been received. Several years past Allahabad Branch had been receiving sewing machines from the Head Office at Calcutta and no octroi duty had ever been paid by the Allahabad Branch. In June 1954 when the railway receipt and the invoice were sent to the Head Octroi Office for stamping and for making a free pass a demand for the payment of octroi was made. In order however to have no business inconvenience the octroi demanded wag paid as a protest. Thereafter the opposite party No. 1 discussed the matter with the Executive Officer and the Administrator but as no relief was granted to him he filed an appeal to the Additional Commissioner which was allowed. The right of the Municipal Board to charge octroi on the sewing machines has been challenged by the opposite party No. 1.