DEVIDAYAL ELECTRONICS AND WIRES LTD. AND ANOTHER Vs. MUNICIPAL CORPORATION OF GREATER BOMBAY AND OTHERS

JUDGEMENT

(1.) THE question arising for determination in this petition under Article 226 of the Constitution is whether the operation described in para 2 read with ground (i) of the petition entitled the petitioners to an exemption from octroi duty vis -a -vis rule 7 framed under section 195 -lA(iv) of the Bombay Municipal Corporation Act. being Bombay Act No. III of 1888 - hereinafter referred to as the 'Rule' and "Act' respectively.

(2.) ONE of the sources of revenue for the Bombay Municipal Corporation (BMC) is octroi which is a tax levied under section 192(1) of the Act on the import of articles listed in Schedule 'H' into Greater Bombay - the purpose of entry being "consumption, use, or sale" in Greater Bombay. Section 195 -lA(iv) entitles the framing of rules for the purpose of grant of exemption to articles otherwise subject to levy of octroi duty. In exercise of this power rule 7 has been framed and the heading given to the said rule is - '"Exemption of articles imported or exported temporarily for the purpose of inspection, demonstration, exhibition, repairs, processing or such other similar purposes." Sub -rules relevant, and. to the extent of the relevancy, read as follows : -

(3.) THE description of the processing given in the petition is not disputed by the respondents - at least not by filing a return giving its own version of what the operation consists of. Therefore, the petition averments on this subject will have to be taken as the basis for ruling upon the legality of the collection of octroi made by the BMC. To repeat, the wires and rods sent to the processing units in Greater Bombay an so sent with the object of reducing the thickness thereof. It is the thickness reduced product which is used by the company in the manufacture of its products. First. I will deal with the contention of Mr. Dalai that the use of the word 'include' in sub -rule (b) should be read in the sense of 'means'. In support of this submission, learned counsel relies upon various authorities such as those, reported in : AIR 1977 SC 90. : AIR 1967 SC 1895. ; : AIR 1979 Bom. 38. Consideration of these authorities will be better in the background of the leading case on the subject, viz. Dilworth vs. Commissioner of Stamps., (1899) AC 99. In that case it was said -