SWAROOPCHAND JAIN Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) THIS petition under Articles 226 and 227 of the Constitution is mainly directed against the imposition of octroi tax within the limits of the Chhatarpur Municipality under the provisions of the M. P. Municipalities Act, 1961.

(2.) THE facts material for disposal of this petition may be shortly stated. Chhatarpur town, which had a Municipal Board, formed part of the Part-C State of Vindhya Pradesh before the States were reorganised and it became a part of the new State of Madhya Pradesh as from November 1, 1956. Prior to that date, the Rewa State Municipalities Act, 1946 (hereinafter called the Rewa Act) was in force in the State of Vindhya Pradesh. By the Notification No. 39 dated December 10, 1954, the Vindhya Pradesh Government had sanctioned under section 124 of the Rewa Act imposition of toll tax called Rahdari Kar leviable under section 121 (1) (e) of that Act. After the State of Vindhya Pradesh became a part of the new State of Madhya Pradesh, the M. P. Municipalities Act, 1961 (hereinafter called the Act), which repealed the corresponding regional Acts including the Rewa Act, was placed on the Statute Book. By the Notification No. 25-8478-XVIII-U-I dated January 13, 1969, the State Government sanctioned under section 129 of the Act imposition of octroi tax under the provisions of that Act within the limits of Chhatarpur Municipality. THE petitioner has challenged the two taxes on several grounds which have been traversed and controverted in the return filed by the Municipal Council, Chhatarpur (respondent No. 2). We proceed to consider immediately those grounds in the following paragraphs.

(3.) IN considering the distinction between octroi tax and terminal tax, the Supreme Court observed in Burmah- Shell Co. v. Belgaum Municipality (AIR 1963 SC 906) as follows: