NABIN CHANDRA Vs. DHENKANAL MUNICIPALITY

JUDGEMENT

(1.) This writ application has been referred to the Full Bench by a Division Bench of this Court which entertained doubt regarding the correctness of the decision of this court in the case of Balasore Talkies v. Municipalities (1986) 61 Cut LT 254 where the question of levy of octroi duty on cinematography films brought from outside for exhibition in the cinema halls in different towns in Orissa was decided.

(2.) The petitioner is the owner of a cinema hall in the town of Dhenkanal and brings cinematography films from distributors for exhibition in his hall. The Dhenkanal Municipality having been authorised to levy octroi under S.131(1)(kk) of the Orissa Municipal Act, 1950 (for short "the Act") issued a notice (Annexure-1) to the petitioner requiring him to pay octroi duty at the rate of 3 per cent for user of films by way of screening in his cinema hall. The petitioner disputed the demand on the ground that bringing films on hire for exhibition only did not attract the mischief of the aforesaid provision of the Act, but having failed to convince the municipal authorities has filed the present writ application.

(3.) Section 131 authorises the Municipal Council to impose various taxes, and clause (kk) of sub-sec.(i) authorises the council to impose octroi and reads as follows : - "(kk) an octroi on goods brought within the limits of a municipality for consumption, use or sale therein :" (Emphasis supplied) This power is derived from Entry 52 of List II of the Sch. VII of the Constitution.