ACQUEOUS VICTUALS P LTD Vs. NAGAR MAHAPALIKA BAREILLY

JUDGEMENT

(1.) By means of the present writ petition, the petitioner seeks writ, order or direction in the nature of mandamus directing Nagar Mahapalika, Bareilly, not to charge octroi from the petitioner-company on empty bottles which it brings within the limits of Nagar Mahapalika. Bareilly, for refilling and again sends back to the distributors outside the municipal limits of opposite party. The petitioner further seeks writ of mandamus quashing the octroi bye-law and Rules framed thereunder by the Nagar Mahapalika. Bareilly, to the extent it authorises the levy of octroi on the empty bottles which are brought for being refilled and to refund the amount realised in respect of such octroi from the petitioner-company.

(2.) The facts of the case arc that the petitioner is a private limited company incorporated under the Companies Act. 1956, and has its bottling plant at Bareilly. It is engaged in the business of bottling soft drinks like Gold Spot, Limca, Thums-up, Soda, Rim-Zim, etc., for which the petitioner entered into an agreement with M/s. Parle (Exports) Private Limited. Bombay. The petitioner distributes bottled soft drinks to the wholesalers appointed by it in 10 districts in the State of Uttar Pradesh, including the municipal limits of Bareilly Nagar Mahapalika. The wholesalers return the empty bottles to the petitioner after the beverage filled in the said bottles are consumed or used by the consumers. The empty bottles so received by the petitioner, are again re-filled by it and once again the petitioner sends the same to its whole-sellers in various districts. Thus, the said bottles remain in circulation.

(3.) The Nagar Mahapalika, Bareilly opposite party has framed rules to levy the octroi duty. Entry 17 of List 1 of the Octroi Schedule framed by the opposite party provides for levy of Rs. 5 per quintal as octroi on alt kinds of soft-drinks like Double-Seven, Limca, Gold Spot etc., (including bottles' weight). However, in item No. 39 of List IV of the Octroi Schedule, it is provided that octroi duty on empty bottles are chargeable at the rate of Rs. 2 per quintal as Sheeshe Kee Bottles, etc. The petitioner has stated that glass bottles which the petitioner uses for filling/re-filling soft drinks, are manufactured by various firms at Bombay, Baroda, Bahadurgarh (Haryana) as per specifications prescribed by M/s. Parle (Exports) Limited and they are purchased directly by the petitioner from such manufacturers. The petitioner pays the octroi duty on these new bottles when it brings them within the municipal limits of Bareilly. The Nagar Mahapalika, Bareilly, opposite party, is levying octroi on the empty glass bottles which the petitioner receives from outside the municipal limits of Nagar Mahapalika, for being refilled. The contention of the petitioner is that such bottles which the petitioner receives for being refilled within the municipal limit of Nagar Mahapalika, Bareilly, is not meant for consumption, use or sale, within the municipal limits of Nagar Mahapalika. Bareilly, and therefore, no octroi duly can be levied under law on such empty bottles. It has been stated by the petitioner that the ownership of bottles which keep on circulating continuously remains with the petitioner throughout and in the event of any damages being caused to the bottles in the course of sale by the whole-sellers/retail shop keepers, the petitioner is compensated.