Judgment

KAILASAM, J.:- These two Civil Appeals are by the Kathiawar Industries Ltd. by special leave against the judgment of the Gujarat High Court holding that the appellants are liable to pay octori duty on uncrushed salt which is brought by the appellant to the factory situate within the octroi limits and crushed there.

2. The appellant is running a salt manufacturing works at Jaffrabad called "Newabsidi Mohmad Khan Salt Works". The company had constructed salt works, grinding mills, trolly tracks and a jetty at the port site. The major portion of the salt works is situate out of the municipal limits. The salt is manufactured outside the municipal limits. The grinding mills and the part of the trolly-track leading to jetty come within the municipal limits of the respondent Jaffrabad Municipality. The Municipality by a notice dated 3-11-1955 demanded from the appellant Rupees 7289-6-0 as arrears of octroi. The appellant paid under protest and filed the suit out of which this appeal arises before the Civil Judge Gohilwad, District Bhavangar, against the respondent for a declaration that the salt manufactured by the appellant at its salt works at Jaffrabad and exported uncrushed and