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SUPREME COURT OF INDIA
(BEFORE KULDIP SINGH AND J.S. VERMA, JJ.)
Civil Appeal No. 4207 of 1985{From the Judgment and Order dated 30-7-1984 and 12-6-1985 of the Bombay High Court in W.P. Nos. 174 of 1983, 146 and 124 of 1984}
V.S. DEMPO & CO. PVT. LTD.
Versus
BOARD OF TRUSTEES AND ANOTHER
And
Civil Appeal Nos. 5729-30 of 1985{From the Judgment and Order dated 12-6-1985 of the Bombay High Court in W.P. Nos. 146 and 124 of 1984}
CHOWGULE & CO. PVT. LTD. AND ANOTHER
Versus
BOARD OF TRUSTEES OF THE PORT OF MORMUGAO AND ANOTHER
Civil Appeal Nos. 4207 and 5729-30 of 1985,
decided on March 29, 1994
Advocates appeared
Ashok Desai, Ms Usgaonkar and B.S. Zaiwala, Senior Advocates (S.K. Mehta and Dhruv Mehta, Advocates, with them) for the Appellant in C.A. No. 4207 of 1985. Santosh Hegde, Senior Advocate (P.H. Parekh, S. Fazl and U. Sagar, Advocates, with him) for the Appellant in C.A. Nos. 5729-30 of 1985.
T.R. Andhyarujina, Senior Advocate (K.J. Presswala, U.A. Rana, Rajiv Tyagi and Anand Prasad and M/s Gagrat and Co., Advocates, with him) for the Respondents.
Major Port Trusts Act, 1963 - Section 52, 48 and 123 - Mormugao Port - Handling charges - Surcharge - Challenged - Appellants, in the writ petitions had challenged notification dated amended by the notification dated by which Board of Trustees of Mormugao Port had revised rates of wharf dues on some export cargo, namely, iron ore and iron ore pellets handled through Mechanical Ore Handling Plant (referred hereafter as MOHP) at Berth No. 9 - Increase was made from existing rate of Rs 27.56 per tonne or part thereof to Rs 28.22 and there was also levy of surcharge subject to rebate of Rs 8.80 per tonne - It was further notified that 50% of handling charges were payable before receipt of cargo for unloading and balance of 50% was to be paid before shipment of cargo - Learned counsel for appellant that in these appeals there was no challenge to revision of handling charges from Rs 27.56 per tonne or part thereof - Challenge in these appeals has been confined mainly to levy of surcharge by aforesaid notifications - Challenge has been made to notes 1 and 2 of the notification – Held, allotment of storage plots is made on rational basis depending on the export potential of applicant and, therefore, nominal plot capacity in note 1 of notification for purpose of rate of rebate allowed is integrally connected with exercise of allotment of storage plot to exporter - Rate of rebate available to a particular exporter in accordance with note 1 is, therefore, on rational basis having nexus with object of achieving maximum possible efficiency in working of Mechanical Ore Handling Plant and most efficient service of plots by MOHP - A cost analysis based on actual working of MOHP was carried out and revised rates specified in notification were worked out on that basis - Contents of affidavit along with undisputed facts make it clear that revision of handling charges including levy of surcharge and provision for rebate in note 1 as also requirement of note 2 of notification is well within statutory powers and is neither arbitrary nor unreasonable - In fact, charges prescribed in this manner provide incentive for full utilisation of MOHP by giving rebate for such use and care is taken to provide for an alternative in case of non-availability of MOHP for any legitimate reason - There is thus no basis to contend that charges are in nature of penalty - Court find no merit in these appeals and they are accordingly dismissed
Judgment
VERMA, J.- These appeals by special leave are against the dismissal of the Writ Petition Nos. 174 of 1983, 124 and 146 of 1984 filed by the appellants in the Bombay High Court, Panaji Bench, Goa. The appellants, in the writ petitions had challenged the notification dated 25-10-1983 amended by the notification dated 26-4-1984 by which the Board of Trustees of the Mormugao Port had revised the rates of wharf dues on some export cargo, namely, iron ore and iron ore pellets handled through the Mechanical Ore Handling Plant (referred hereafter as MOHP) at Berth No. 9. The increase was made from the existing rate of Rs 27.56 per tonne or part thereof to Rs 28.22 and there was also levy of surcharge subject to rebate of Rs 8.80 per tonne. It was further notified that 50% of the handling charges were payable before receipt of the cargo for unloading and the balance of 50% was to be paid before shipment of the cargo. The appellants challenged the levy of the said surcharge as well as the requirement of payment of 50% of the handling charges before receipt of the cargo for unloading. The writ petitions have been dismissed by the High Court hence these appeals by special leave.
2. It was stated by Shri Ashok Desai, learned counsel for the appellant that in these appeals there was no challenge to the revision of the handling charges from Rs 27.56 per tonne or part thereof to Rs 28.22. The challenge in these appeals has been confined mainly to the levy of the surcharge by the aforesaid notifications. The challenge has been made to notes 1 and 2 of the notification.
3. It would be appropriate to quote the aforesaid two notifications which are as under:
GOVERNMENT OF GOA, DAMAN AND DIU
Industries and Labour Department
Mormugao Port Trust
Notification No. 3-GA(8)/83
In exercise of the powers conferred under Chapter IV of the Major Port Trusts Act, 1963 and with the prior sanction of the Central Government in terms of Section 52 of the said Act, the following amendments be made to the Schedule of Harbour and Railway Rates published in the Boletim Official No.
21, Series I, dated 31-5-1962 and as amended from time to time.
Schedule of Harbour and Railway Rates Proposed Amendment
Untitled Document
_______________________________________________________________________
Existing Rates
Revised Rates
_______________________________________________________________________
Section B
Wharf dues on Export Cargo
Section B
Wharf dues on Export Cargo
Item No.
Rs
Item No.
Rs
27(a)
Iron ore handled through the MOHP at Berth No. 9
27.56 per 1000 kgs. or part thereof.
27(a)
Iron ore handled through MOHP at Berth No. 9
28.22 per 1000 kgs. or part thereof.
27(b)
Iron ore pellets handled through the MOHP at Berth No. 9
27.56 per 1000 kgs. or part thereof.
27(b)
Iron ore pellets handled through MOHP at Berth No. 9
28.22 per 1000 kgs. or part thereof.
Note: (1)
In addition to above handling charges minimum rental surcharge shall be leviable at Rs 8.80 per tonne subject to rebate for the plot allottees holding the plot for a minimum period of 1 year on the following pattern.
On achieving a level of turnover
Rate of rebate allowed (Rs per tonne)
6.25 times of nominal plot capacity
1.00
6.50 times of nominal plot capacity
2.00
6.75 times of nominal plot capacity
3.00
7.00 times of nominal plot capacity
4.00
7.25 times of nominal plot capacity
5.20
7.50 times of nominal plot capacity
6.40
7.75 times of nominal plot capacity
7.60
8.00 times of nominal plot capacity
8.80
Note: (2)
50% of the handling charges shall be payable before the cargo is received for unloading. Balance 50% of the handling charges will become payable before the shipment of the cargo.
Marmugao Port Trust
By Order
Marmugao, Goa
A.B. Gadgil
25-10-1983
Dy. Secretary
_______________________________________________________________________
GOVERNMENT OF GOA, DAMAN AND DIU
MORMUGAO PORT TRUST
Notification No. 3-GA(8)/84
In exercise of the powers conferred under Chapter VI of the Major Port Trusts Act, 1963 and with the prior sa
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