KELASH NATH Vs. MUNICIPAL COMMITTEEBATALA

JUDGEMENT

(1.) The question which requires determination is whether the jurisdiction of the Civil Courts to entertain and decide a suit in which the main issue is whether certain goods fell under one item or the other of the Schedule under which octroi duty was chargeable by the Municipal Committee was barred by virtue of the provisions contained in sections 84 and 86 of the Punjab Municipal Act, 1911.

(2.) The plaintiffs were dealers in sports and carried on business within the Municipal limits of Municipal Committee, Batala. In the course of their business they imported what were called "lathis" (of cane). According to them, they were liable to pay octroi duty at the rate of-/2/-per maund either under item No. 105 or 110 of the Octroi Schedule but the Municipal Committee had assessed them under the residuary item, No. 122 which imposed a duty of Rs. 2 per maund. They, therefore, filed a suit for an injunction to restrain the defendant Committee from levying octroi duty at the rate of Rs. 2/- per maund on imported cane. The defendant Committee took objection to the jurisdiction of the Court to entertain and decide a suit of this nature and further pleaded that the goods had been rightly assessed under the residuary item. The trial Court was of the view that such a suit could proceed in the Civil Courts and gave a finding that the octroi duty could be levied on the goods in question under item 105 only and that the residuary, item was not applicable. The suit was consequently decreed. On appeal the learned Senior Sub Judge held that the Civil Courts had no jurisdiction to entertain the suit and on that ground it was dismissed. When the matter came before the learned Single Judge in second appeal, he was of the opinion that in view of conflict of authority prevailing in this Court it should be referred to a Division Bench. It came before a Division Bench by which it has been referred to a Full Bench.

(3.) The relevant sections may first be reproduced-