BARADA KANTA MOHANTY Vs. STATE OF ORISSA

JUDGEMENT

(1.) Petitioner purporting to be the General Secretary of Cuttack Chamber of Commerce, Malgodown, Cuttack has filed this writ application on behalf of its members challenging collection of octroi under S. 131(1)(kk) of the Orissa Municipal Act, 1950 (in short 'the Act') in respect of imported edible oils.

(2.) With reference to a Notification No. 711/85 dated 30th September, 1985 issued by the Housing and Urban Development Department it is pleaded that collection of octroi on imported edible oils is unauthorised. A copy of the said Notification dated 30th September, 1985 is annexed as Annexure-1 to the writ application. Certain receipts have been filed to show that octroi has, in fact, been collected on the imported R. B. D. Palm oil. The Cuttack Municipal Corporation (in short "the Corporation") has taken the stand that the Housing and Urban Development Department by order dated 5th March, 1998 has accorded sanction to the imposition of octroi on various goods and serial No. 4 of the order deals with Dalda, Vanaspati Ghee and all types of oil and, therefore, collection of octroi is legal. The collection is to be made at the rate of 1%. It is further submitted that by Notification dated 26-11-1998 the Government of Orissa in Housing and Urban Development Department decided to withdraw the concession granted in the Notification dated 30-9-1985. A copy of the said Notification is annexed as Annexure-B/2 to the counter affidavit. The Notification is to take effect from the date of its publication in the Orissa Gazette. It is stated that the Notification dated 26-11-1998 (S. R. O. No. 762/98) has been duly published in the Orissa Gazette, Extraordinary, No. 1568 dated 1-12-1998.

(3.) The stand of the Municipal Corporation in short is that when State Government accorded sanction for levy of octroi on different goods brought within the limits of Cuttack Municipal Corporation at the specified rate vide order dated 5-3-1990, it meant that the exemption granted by Notification No. 30318-HUD dated 30th September, 1985 automatically stood revoked, so far as Cuttack Municipal Corporation is concerned.