MUNICIPAL COMMITTEE Vs. SHAH RAISI HIRJI AND CO

JUDGEMENT

(1.) By this petition under Article 226 of the Constitution of India, the petitioner seeks the issue of a writ of certiorari or any other writ, order or direction to quash a decision of the Board of Revenue, Madhya Pradesh, whereby the Board declared that the non-applicants Nos. 1 and 2 were liable to pay octroi duty on foodgrains brought by them within the limits o the Pandhurna Municipal Committee at "the exceptional rates given in columns Nos. 2 to 10 of the Schedule to the rules make by the Municipal Committee for the imposition of the octroi duty'' and that they could not be charged octroi duty under column 13 of the Schedule and directed the refund of the excess duty paid by them. The writ of certiorari is sought on the ground that there was an error of law on the face of the record in the decision of the Board of Revenue.

(2.) The circumstances leading to the making of the impugned order by the Board of Revenue are that the petitioner Municipal Committee made rules in 1954 (published in the Madhya Pradesh Gazette dated 6-8-1954 at page 425, Part II) for the imposition of actroi tax on animals and goods brought within the octroi limits of the Municipal Committee for sale, consumption or use within those limits. The rules became effective from 10-8-1954 and levied octroi duty on various commodities according to the Schedule to the rules. The Schedule classified various articles under eight heads. It levied octroi duty in the main on the basis of four standards, namely, (i) load with reference to the mode of transport, to wit, cart drawn by three or more animals, cart drawn by two animals; camel-load, buffallo-load, ass-load, bullock-load or pony-load, Kawarload, head-load, motor lorry load; (ii) number, weight and standard packages; (iii) ad valorem rate per cent; and (iv) alternative rate per maund. It then proceeded to specify the rate of duty adopting the standard or standards appropriate to the commodity. For grains and pulses of all kinds, the Schedule provided the levy of octroi duty at the rate of four annas with reference to "cart drawn by "two animals" and an alternative rate of four annas per maund. The Schedule contained a Note which ran as follows : "NOTE -- In applying maundage rate when no other rates are entered in the schedule, the following rate shall be taken as ordinary equivalent to the rates by weights shown against each provided that any importer disputes the equivalence of the load rate to the rate by weight may claim to have the test of actual weighment applied : 1. Head-load to be taken as equivalent to 30 seers. 2. Kawar-load to be taken as equivalent to one maund. 3. Pony, mule or ass-load to be taken as equivalent to 2 1/4 maunds. 4. Bullock-load to be taken as equivalent to 2 1/2 maunds, 5. Buffalo-load to be taken as equivalent to 3 1/2 maunds. 6. Camel-load to be taken as equivalent to 7 1/2 maunds. 7. Cart-load drawn by two animals to be taken as equivalent to 12 1/2 maunds. 8. Cart-load drawn by three animals to be taken as equivalent to 18 maunds. 9. Motor-lorry load will be taken according to its tonnage in Municipal Committee vs. Shah Raisi Hirji and Co. and Ors. (28.10.1959 -MPHC) Page 3 of 7 The seer shall be the seer of 80 tolas and the maund of 40 seers." The non-applicants Nos. 1 and 2 imported into the municipal limits certain quantities of grain and pulses by rail and motor-lorries. The Municipal Committee assessed them to octroi duty at the rate of four annas per maund. The non-applicants claimed that as after the import, the foodgrains actually crossed the octroi post in bullock carts, they were liable to pay octroi duty only at the rate of four annas per cart load according to the third column of the Schedule. This claim was rejected by the Executive Officer of the Municipal Committee. Thereupon the non-applicants preferred appeals before the Sub- divisional Officer, Sausar. The appeals were dismissed by the Sub-divisional Officer who took the view that the alternative rate of four annas per maund was applicable when the foodgrain was brought within the municipal limits by rail or motor lorry; that under Rule 19 of the Octroi Rules made by the Municipal Committee, goods transported by rail were deemed to have entered the octroi limits when they reached the railway destination itself; and that for the purposes of imposition of octroi duty it made no difference whatsoever how the goods were transported subsequently from the railway station to any place in the town. The non-applicants Nos. 1 and 2 then preferred revision petitions before the Board of Revenue against the decision of the Sub-divisional Officer. The Board took the view that the non-applicants were not liable to pay octroi duty at the alternative rate of four annas per maund as the goods were carried from the railway station by carts and the Schedule prescribed an "exceptional rate" in the case of goods transported by carts and that Rule 19 of the Octroi Rules only fixed the tax liability and not the "mode of assessment'' of the octroi tax.

(3.) Mr. Dabir, learned counsel appearing for the petitioner, contended that the liability to pay octroi duty came into existence as soon as the goods entered the octroi limits; that under Rule 19 of the Octroi Rules goods arriving by rail were deemed to have entered the octroi limits where they reached the railway station; that as the Schedule did not specifically prescribe the rate of. octroi duty for goods transported by rail or motor lorry, such goods were liable to duty according to the alternative rate of four annas per maund; and that the liability to pay octroi duty at this rate could not be altered by the transport of goods from the railway station in a bullock cart to their place of destination in the town.