DURABLE PLASTIC INDUSTRIES Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS order shall dispose of C.W.P. Nos. 4643 of 1987 and 9691 of 1988 as common questions of law and facts are involved. The petitioners in these petitions, who have established their industrial units in the Sahibzada Ajit Singh Nagar, Mohali (for brevity, "SAS Nagar"), have challenged notifications dated 20.12.1983 and 22.5.1984, whereby Octroi tax was imposed on the entry of goods into the notified area of SAS Nagar. The facts are referred from CWP No. 4643 of 1987.

(2.) BRIEF facts of the case are that on 7.7.1969 (P-3/A), the SAS Nagar was declared as Urban Estate under the provisions of Section 3(1) of the Punjab Urban Estates (Development and Regulations) Act, 1965 (for brevity, "the Act"). Section 8 of the Act empowers the Chief Administrator to apply to the Urban Estate or a part thereof, with the prior approval of the State Government, any of the provisions of the Punjab Municipal Act, 1911 (for brevity, "the Municipal Act") specified in the Schedule of the Act. On 12.10.1978, the Chief Administrator made applicable certain provisions of the Municipal Act applicable to the SAS Nagar (P-4). On 20.12.1983, the State Government in exercise of powers under Section 241 of the Municipal Act declared the SAS Nagar as Notified Area Committee, which is deemed to be Municipal Committee for the purposes of carrying out its functions under the Municipal Act (P-5). For generating funds and carrying out its functions as a local authority, the State Government issued a notification dated 22.5.1984 under Section 242 of the Municipal Act, imposing tax in the nature of octroi (without refunds) and without any surcharge on the entry of goods into the notified area of SAS Nagar for consumption, use or sale therein as shown in the annexure attached therewith (P-6). It was further stipulated that the exemption granted by the Government from time to time would remain in force. The petitioners have challenged the aforementioned notifications in these proceedings claiming that they are entitled to claim exemption from the payment of octroi duty for a period of six years commencing from the date of availing the incentive for the first time.

(3.) HAVING heard learned State counsel and perusing the paper book with her able assistance, we are of the considered view that the Division Bench judgment in the case of M/s Molins of India Ltd. (supra) is fully applicable to the instant petitions. Accordingly, following the same principles and precedent, these petitions are allowed in terms of the Division Bench judgment rendered by this Court in the case of M/s Molins of India Ltd. Petitions allowed.