MUNICIPAL COUNCIL RAIGARH Vs. PAHAWA TRADING CO RAIGARH

JUDGEMENT

(1.) THIS petition under Article 226 of the Constitution involves the validity of imposition of octroi by the Municipal Council, Raigarh, the petitioner, on unhydrogenated oils at the rate of 75 paise per tin of four gallons. This imposition, which was in supersession of previously sanctioned rate, was sanctioned by the State Government under Notification No. 121 -U -XVIII of 27th April, 1960. The notification which is exhibited as Annexure A -1 in so far as it is relevant reads as follows :

(2.) THE events that led to this petition are that the respondents Nos. 1 to 7, who were assessed to octroi on unhydrogenated oil at the rate of 75 paise per tin in accordance with the above notification, appealed to the Sub -Divisional Officer, Raigarh under Section 83 (1) of the C. P. and Berar Municipalities Act, 1922. The grievance of the respondents in these appeals was that the Council was not authorised to impose octroi -tax in respect of unhydrogenated oils in excess of 25 paise (4 annas) per maund, which was the maximum rate fixed under a rule made by the State Government in exercise of its power conferred by Section 66 (2) of the Act. This rule which was published under Notification No. 1584 -1661 -M -XIII dated 29th April, 1950 is as under :

(3.) AS we are accepting the third contention raised by the learned counsel, we have not found it necessary to express any opinion on the first two contentions.