HARISH NARAYAN JOG Vs. SANGLI MUNICIPAL COUNCIL SANGLI

JUDGEMENT

(1.) SANGLI Municipal Council passed a Resolution on 3-8-1991 by which it granted exemption from a liability regarding payment of octroi duty due from Prakash Co-operative Agro Industrial Society Limited, Sangli. In so doing, it exercised the powers under Rule 5 (4) of Maharashtra Municipalities (Octroi) Rules, 1968. The Rules have been framed under section 321 of the Maharashtra Municipalities (Octroi) Rules, 1968 reads : (4) A Council may likewise, by resolution passed at special meeting, from time to time, decide to exempt all or any of the goods specified in Part II of Schedule II, from the levy of octroi or withdraw any exemption so granted. When the Council decides to exempt such goods from the levy of octroi or to withdraw any such exemption, it shall follow the procedure laid down in sub-rule (2), and such exemption shall come into force or stand withdrawn from the date specified by the Council for that purpose.

(2.) THE Co-operative Society, is engaged in various activities including those connected with horticultural produce, It is to facilitate that activity that costly machinery had been imported. According to the Petitioners, the value exceeds Rs three crores. Understandbly, the octroi is commensurately high, a sum of Rs. 4,92,373,40. The Society had sought exemption. The media made much of the non-payment of the octroi duty by the Society. The Chief Officer of the Municipality immediately reacted by issuing a notice under section 137 by way of demand. That was responded to by the Society. It was, however, found to be inadequate ; and correspondence continued. The Chief Officer submitted a report on 14-6-1991 about the liability for duty. Legal action against the Society was suggested. The President directed deferring action against the Society till the matter was deliberated upon and decided by the Council. The Council, as stated earlier, had ultimately decided to grant exemption.

(3.) THREE contentions were urged assailing the action granting the exemption :