MUNICIPAL BOARD BHILWARA Vs. BHURALAL

JUDGEMENT

(1.) THIS is a reference by a learned single Judge in a suit for refund of what was alleged to be an illegal recovery of the octroi tax, and, inter alia, raises an important and interesting question as to the interpretation of sub-sec. (1) and (2) of sec. 179 of the Rajasthan Town Municipalities Act, 1951 (Act No. XXIII of 1951, hereinafter called the Act of 1951 ).

(2.) THE appellant Municipal Board, Bhilwara, was the defendant in the suit, while the respondents were the plaintiffs. We may begin by stating the facts which have been found by both courts below to have been fully established. THEse are : (1) THE plaintiffs who are presumably dealers in cotton bales sent 716 such bales from their place of residence cum business namely Gangapur to Bombay and certain other places between the 11th May, 1952, to 15th September, 1952; (2) As Gangapur was not a rail-head, the goods had to be taken to the Bhilwara railway station for being railed to Bombay ; (3) Customs duty had been paid to the competent authorities of the State of Rajasthan at Gangapur, and there is no dispute as to that; and (4) A further sum of Rs. 645/3/- as octroi was charged at Bhilwara by the customs staff while the goods were passing through that town, and this tax was so recovered on behalf of the Municipal Board at that place, and was in due course paid to it. THE relevant dates during which this tax was paid are 15th May, 1952 to 4th September, 1952. So far there is no dispute between the parties at this stage, and, none indeed can be raised, for these are all matters of fact concluded by the concurrent findings of the two courts below. THE plaintiffs5 case then was and is that the recovery of this tax amounting to Rs. 645/3/- from them was unauthorised and illegal and therefore they represented their case to the customs authorities who admittedly upheld their plea, but the Municipal Board did not. Consequently the plaintiffs instituted this suit on the 16th July, 1955, for refund of the sum of Rs. 645/3/- plus a further sum of Rs. 122/- as interest at eight annas per cent per mensem in all amounting to Rs. 767/3/ -.