Judgment

FAZAL ALI, J.:- These appeals by special leave are directed against a Division Bench common judgment dated October 13, 1978 of the High Court of Delhi by which the Letters Patent Appeals were allowed and the impugned Orders dated May 23, 1975 and July 7, 1975 passed by the Terminal Tax Officer, Municipal Corporation of Delhi were quashed.

2. The facts of the case lie within a very narrow compass and may be summarised as follows. Manmohan Tuli, appellant in C. A. No. 2004/80, is the owner of a piece of land situate on the Grand Trunk Road near the sixth milestone as one goes from Delhi to Ghaziabad. Appellant Tuli has constructed various buildings on his land for use as godowns and has rented them out to various transport companies engaged in bringing goods from other States and storing them before their transhipment to Delhi and other States beyond Delhi. The trucks carrying the goods for various destinations pass along the G. T. Road and move into Tulis land. It is not disputed that after the trucks enter the land, the goods are unloaded into the godowns, sorted out and reloaded into the respective trucks meant for various destinations. Thereafter, the trucks move out of the land and, passing through the Union Territory of Delhi after crossing the border line, proceed to their destinations. The Municipal Corporation of Delhi (hereinafter referred to as the Corporation) by its Orders dated May 23, 1975 and July 7, 1975 (hereinafter referred to as the impugned orders) directed that a Terminal Tax post be set up at the entrance to Tulis land in order to collect terminal tax on goods carried into that land. The Ghaziabad Nagar Palika also purported to levy terminal tax on such goods but this levy was neither assailed before the High Court nor has been challenged before us and is therefore left out of consideration. A writ was filed before the High Court by the owners of transport companies as also by Tuli for quashing the Orders of the Corporation seeking to levy terminal tax on the goods which were not meant for Delhi but for places beyond Delhi. Further details are not necessary for the decision of these appeals and both the appeals (C. A. Nos. 2004 and 2005 of 1980) will be disposed of by a common judgment.

3. The High Court vide the impugned judgment was of the opinion that even though the goods were stored in the godown of Tuli, sorted out and reloaded but as they while passing through the territory of Delhi undoubtedly entered the said territory, the Corporation was legally entitled to levy terminal tax at the point of entry into the Union Territory of Delhi. The case of the appellant was that the goods were not meant either to be used or consumed in Delhi nor was Delhi the final destination of the goods. It was a different matter that as the goods were to be sent to destinations beyond Delhi the transport carrying the goods had perforce to pass through the territory of Delhi. It was thus contended that the goods were not carried into the territory of Delhi but were merely carried through the territory of Delhi to other destinations which were beyond Delhi. It was argued that Sec. 178 of the Delhi Municipal Corporation Act, 1957 (hereinafter referred to as the Act) had in terms no application to the case and that therefore the terminal tax imposed by the impugned orders was legally invalid.

4. The counsel for the respondent, however, submitted that even though the goods may have been meant for other destinations but as they were unloaded in the godown and reloaded in various trucks and actually entered into the territory of Delhi, they were factually carried into the Delhi territory and that was sufficient to empower the Corporation to levy the terminal tax. According to the argument of the counsel for the Corporation, the question of destination was not at all germane for the purpose of adjudicating the competency of the Corporation to levy terminal tax at the point of entry into Delhi.

5. Thus, the entire question tur