LOONKARAN PARAKH Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) BY this application under Article 226 of the Constitution the applicants challenge the validity of certain amendments made in Rules 30, 38 and 45 of the Rules for the assessment, collection and refund of octroi tax within the limits of Raipur municipality. The amendments were made by Notification No. 52-776-XVIII-U, issued by the State Government on 14th March 1961 in the exercise of powers conferred by Sections 71, 76 and 85 of the Central Provinces and Berar municipalities Act, 1922. The applicants pray that a writ in the nature of certiorari be issued for quashing the aforesaid notification in so far as it amends Rules 30, 38 and 45 and that a direction be issued to the respondents restraining them from giving effect to those amendments.

(2.) THE petitioners are wholesale dealers in cloth, food-grains and other kirana goods doing business within the limits of Raipur Municipality. During the course of their business they import large quantities of goods within the municipal limits and are also required to take them through those limits. The Raipur Municipality has imposed octroi duty on several articles and goods brought within the municipal limits for sale, consumption or use within those limits. On 4th June 1951 the State government notified the Rules for the assessment, collection and refund of octroi tax within the limits of the Committee. Rule 30 provided:-" goods imported by rail or road and intended for immediate, export and in transit through the municipality shall not be subject to any duty on the arrival of such goods at an outpost and after the declaration under rule 9 has been made, the official in charge shall grand a pass in the prescribed form called the 'transit Pass'. The goods shall then proceed under escort of a peon to the outposit by which they are to go out or to the bonded warehouse. As soon as they go out or enter the bonded warehouse, the pass will be surrendered to the moharrir in charge of the exit post or the bonded warehouse. After verifying the entries in the pass, he shall certify thereon that the goods have passed out of the municipal limits or have entered the bonded warehouse and send the pass to the octroi superintendent. If the pass is not surrendered at the exit outpost or bonded warehouse, the importer will be liable to pay the full octroi duty On- the goods entered thereon. " by the amendment made in this rule on 14th March 196], for the words "called the transit Pass" the words "called the transit pass on the payment of a fee of thirtyseven naya paisa fcr each Pass" were substituted. After the filing of this petition this rule was further amended by Notification: No. 181-6986-U-XVIII dated 25th September 1961 so as to substitute "0. 12np. " in place cf 0. 37np. The result of these amendments is that whereas in 1951 the transit pass could be obtained without payment of any fee to-day a fee of 0. 12np. has to be paid for the transit pass under Rule 30.

(3.) RULE 38 dealt with refund of octroi tax in certain circumstances. The amendments made on 14th March 1961 made an alternation in the period within which a refund could be claimed and in the limit of the minimum amount of tax which could not be refunded. The amendment also inserted in this rule a provision with regard to the declaration for claiming the refund and another provision disentitling the importer from claiming any refund due to alternation in the nature of the article originally imported further amendments in this rule were made by the notification dated 25th September 1961 referred to earlier. By this amendment the period within which refund could be claimed was again altered. The amended rule 38 now stands thus:--