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SUPREME COURT OF INDIA
S. MURTAZA FAZAL ALI, P.N. SHINGHAL AND A.D. KOSHAL, JJ.*
Municipal Corporation for the City of Poona and another, Appellants
Versus
Bijlee Prodcuts (India) Ltd. etc., Respondents.
Civil Appeals nos. 2009 and 2081 of 1969; 355 and 356 of 1970 and 94 of 1971, D/- 14-9-1978.
(1) Civil Appeals Nos. 2009 and 2081 of 1969
(2) Civil Appeals Nos. 355 and 356 of 1970. :
Municipal Corporation for the City of Poona, Appellant
Versus
Indian Hume Pipe Co, etc., Respondents.
(3) Civil Appeal No. 94 of 1971:
Siporex India Ltd., Appellant
Versus
The Municipal Corporation for the City of Poona and others, Respondents.
Advocates appeared
Mr. Y. S. Chitale, Sr. Advocate, Mr. J. L. Nain, Sr. Advocate (in C. A. No. 94 of 1971) (M/s. C. K. Ratnaparkhi and A. G. Ratnaparkhi, Advocates with them) for Appellants in C. As. Nos. 2009, 2081 of 1969, 355, 356 of 1970 and Respondents in C. A. No. 94 of 1971; Mr. A. K. Sen. Sr. Advocate (in C. A. No. 2009 of 1969), Mr. V. S. Desai, Sr. Advocate (in C. A. No. 94 of 1971), Mr. A. B. Devan, Sr. Advocate (in C. A. No. 356 of 1970 and also Intervener in C. A. No. 94 of 1971), M/s. V. M. Tarkunde, A. K. Sen, Sr. Advocate, Mr. S. M. Thakore, Advocate (M/s. I. N. Shroff, H. S, Parihar and R. P. Kapur, Advocates with them), for Respondents in C. As. Nos. 2009. 2081 of 1969, 355, 356 of 1970 and Appellant in C. A. No. 94 of 1971 and Intervers in C. As. Nos. 2009, 2081 of 1969 and 355-356 of 1970.
Bombay Provincial Municipal Corporation Act, 1949 - Demand octopi duty- Property taxes and taxes on vehicles - It has option to impose other kinds of taxes one of which is octopi with which we are primarily concerned in these appeals – Sub section provides that Municipal taxes shall be assessed and levied in accordance with provisions of Act and rules - Section enjoins Corporation to make detailed provisions in connection with assessment and collection of any taxes and enables Government either to refuse to sanction rules and refer same back to Corporation for consideration or to sanction same with or without modifications – Court shall extract relevant sections in later part of our judgment – Held, In view of findings given and decision rendered by us in Civil Appeals it is not necessary for us to go into details of facts of this case as court have already that Government order must be read to this effect this Rule deleted but previous concessions given industrialists concerned will continue - It appears however that far as appellant is concerned it has not executed any sale deed though it was allotted plot which was also demarcated - Apart from point which we decided in other appeals there are additional points of law involved in this case court do not think that this was fit case which should have been dismissed in liming by Bombay High Court –Court therefore allow this appeal and remit case to High Court for re-admitting petition and disposal according to law - Point regarding interpretation of Government order has already been decided by us in Civil Appeals referred to above and will apply to present case also if appellant is able to prove that it falls within four corners of Government order - Orders accordingly
Judgment
FAZAL ALI J.:- These appeals have been brought by certificate of fitness granted by the Bombay High Court against the order of the High Court in S. C. A. No. 2149 of 1969 D/- 12-3-1969. By an order dated 12-7-1970 this Court directed the four appeals to be consolidated because the points involved were the same. The appeals have been filed by the Municipal Corporation for the City of Poona (herinafter called the Corporation) against whom a writ filed before the Bombay High Court was allowed and the orders demanding the octroi duty from the respondents were quashed.
2. The facts of the case in so far as they are pertinent to the decision of the points in issue lie within a very narrow compass. The entire case turns upon the interpretation of some of the provisions of the Bombay Provincial Municipal Corporation Act, 1949 (hereinafter called the Act) and certain notifications issued thereunder. It appears that u/s. 127 (1) of the Act the Corporation has got the power to impose property taxes and taxes on vehicles, boats and animals. By sub-sec. (2) it has the option to impose other kinds of taxes one of which is octori with which we are primarily concerned in these appeals. Sub-section (3) provides that the Municipal taxes shall be assessed and levied in accordance with the provisions of the Act and the rules. Section 149 sub-s. (1) enjoins the Corporation to make detailed provisions in connection with the assessment and collection of any of the taxes and sub-sec. (2) of S. 149 enables the Government either to refuse to sanction the rules and refer the same back to the Corporation for consideration or to sanction the same with or without modifications. We shall extract the relevant sections in a later part of our judgment.
3. It appears that sometime in the year 1957 the Corporation in order to boost industrial development in the City and to encourage the industrialists to establish an industrial estate in the city had decided to give certain concessions in the nature of exemption of octori duty on certain products under certain conditions. In pursuance of this objective the Corporation made the following R. 62-B:
"62-B. "Industrial Estate or Area" means the area which Corporation may from time to time demarcate for the purpose of the rule as the area in which industries can be suitably located in the interest of industrialisation of the city of Poona.
In respect of any raw materials or machinery imported by any industrial manufacturing concern established or to be established in the industrial estate solely for the purpose of manufacturing finished articles in the said Industrial Estate, the Commissioner shall not, for a period of twelve years only, from the date on which this rule comes into force, levy octroi......"
3-A. The Corporation invited applications for allotment of plots in the industrial estate guaranteeing that for a period of 12 years no octroi will be levied as provided in R. 62-B. Acting on the representation made by the Corporation, the respondents, namely, the Bijli Products (India) Ltd., Henley Cables India Ltd., Indian Hume Pipe Co. Ltd. and Kirloskar Pneumatic Co. Ltd. applied for the allotment of plots and sale deeds were executed as mentioned below :-
Name of the Company Area Purchased Sum for which area was purchased Date of purchase
Rs.
Bijlee Products India Pvt. Ltd. 86064 34,425.60 10-9-65
Henley Cables 1566006 3,99,331.53 29-6-60
India Ltd. Bombay. 164960 42,064.80 10-10-69
Indian HumePipe Co. Ltd., Bombay. 553795 1,34,838.71 16-1-59
Kirloskar Pneumatic Co. Ltd., Poona-3. 754436 1,12,093.53 23-5-58
The conveyances executed by the respondents contained the following clause at item (B):
"(B) Octori will be excused following and according to the rule made by the Poona City Municipal Corporation from the date 1-11-1957 in respect of Octroi for Hadapsar Industrial Colony Scheme. We have agreed and hereby assure that we will not rescind or alter the octori rule made by the Poona City Municipal Corporation d
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