B D DAKHANE AND MAHARASHTRA WINE TRADERS AND BABULAL AND SONS AND VIDARBHA WINE TRADERS AND J E BILMORIA AND SONS AND MANWANI TRADING CO Vs. CORPORATION OF THE CITY OF NAGPUR

JUDGEMENT

(1.) In these six petitions the only point is---whether Explanations I and II to Rule 10 introduced under the Assessment, Collection and Refund of the Cess (Octroi duty) etc. (Amendment) Rules, 1984, are the ultra vires of the City of Nagpur Corporation Act, 1948, ("the Corporation Act"). The petitioners are importers of foreign liquor in the City of Nagpur for sale, consumption or use therein. They are holders of a bond licence under the provisions of the Maharashtra Foreign Liquor (Storage in Bond) Rules, 1964, ("the Bond Rules") framed under the Bombay Prohibition Act, 1949 ("the Prohibition Act"). By that licence they are authorised to import the liquor and to store it in the authorised bond warehouses situated within the City without payment of the excise duty. The petitioners contention is that excise duty on such goods is neither actually paid nor is the liability to pay incurred till their arrival at the entrance Naka and hence the said duty cannot be legally added in terms of the Corporation Act while computing the value of the goods for the purposes of charging octroi duty and the Explanations I and II to Rule 10 providing for such addition are void.

(2.) Excise duty on liquor for human consumption is chargeable by the State in view of Entry 51 of List II of the Constitution. Sections 105 and 106 of the Prohibition Act lay down the manner of levying the excise duty on liquor. Bond rules provide for the grant of licence if desired to store foreign liquor in a bonded warehouse, without payment of duty. The Maharashtra Foreign Liquors (Storage and Supply) Regulations of 1964 ("the Regulations") provide for the manner in which the foreign liquor shall be stored in a bonded warehouse. Sections 105 and 106 of the Prohibition Act, read as under :---

(3.) Entry 52 of the State List in the Constitution permits the State to recover taxes on the entry of the goods into a local area for consumption, use or sale therein. Section 114 of the Corporation Act empowers the Corporation to impose certain-mandatory as well non-mandatory taxes. Section 114(1)(e) deals with octroi duty and reads thus:---